The Ministry of Finance of Ukraine is inclined to the Polish model of a simplified taxation system. Deputy Minister of Finance Svetlana Vorobey spoke about this during a discussion at the Center for Economic Strategy (CES), commenting on the National Income Strategy approved by the government, writes Forbes.
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What is known
The Polish model assumes a wide scale of single tax rates from 2 to 20%. The highest is for businesses that have the lowest production costs.
As a rule, this is the area of services, Sparrow noted.
“These are the types of activities that are used to replace labor relations with civil legal or contracts with private entrepreneurs,” she said.
Officials of the Ministry of Finance and the Verkhovna Rada did not name the exact parameters of when exactly and in what form the reform will be implemented. According to the Revenue Strategy, it will take place in 2025-2027. However, the start will also be tied to qualitative changes in the tax system.
Read: Official: The text of the National Strategy does not contain information about the 18% tax on bank transfers of citizens
< h3>What is a simplified system
The National Revenue Strategy provides for reform of the simplified taxation system in 2025-2027.
“Simplified” allows companies and individual entrepreneurs to pay a single tax instead of regular personal income taxes, Unified social tax and military tax, it is used by about 1.7 million taxpayers. Collectively, they generated about 0.9% of GDP in the period 2020-2022.