You're reading: Finance Ministry proposes retaining simplified taxation system for individuals only

Ukraine's Ministry of Finance has proposed retaining the simplified taxation system for individual entrepreneurs only.

Co-founder of NGO national civic platform New Country (Nova Krayina) Valeriy Pekar wrote on his Facebook pagethat the issue was discussed at a meeting of the National Reforms Council.

He said that if Group I is retained and converted into Group A (retaining the annual turnover ceiling), the innovation will be the merger of Groups II and III into Group B with a ceiling turnover of Hr 2 million and a tax rate of 20 percent of the difference between revenues and expenditures. At the same time, it will be permitted to not keep records and write off 80 percent of revenue for costs, or keep records of expenditures and to pay less.

Pekar also said that Group IV, including farmers, will be transformed into Group B, which will also receive a ceiling turnover of Hr 2 million, which means 15 percent of the largest farms will not be able to work under the simplified system.

During a meeting of the National Reforms Council, Finance Minister Natalie Jaresko saidthat the new system, in her view, levels the fairness of taxation for hired employees and self-employed persons.