The Verkhovna Rada has supported in the first reading the government’s bill #8401 on the abolition of a flat tax of 2% and other benefits for entrepreneurs starting July 1, 2023. This is one of the conditions for cooperation with the IMF and the dragging out of the bill has caused concern.
According to information on the website of the Rada, 227 people’s deputies voted for the adoption of the bill, with the required minimum of 226 votes.
“The adoption of the bill will increase revenues to the state and local budgets in 2023 in the amount of about 10 billion UAH,” Finance Minister Serhiy Marchenko commented on the parliament’s decision.
According to published information, the bill proposes to cancel the possibility for sole proprietors and legal entities to be single tax payers of group III with the application of the single tax rate of 2% of income and to resume payment of single tax for groups I and II FLP.
The bill provides for the resumption of documentary checks, but during martial law they will be held in the presence of safe access to areas, premises and other property used for economic activities and / or taxable objects, as well as documents and other information related to the calculation and payment of taxes and fees.
The ministry noted that it is proposed to resume the application of penalties for violations of tax laws, the correctness of the calculation, calculation and payment of a single fee for obligatory state social insurance and the use of BPR / BPR and resume the terms defined in the tax law.
Marchenko stressed that the bill does not provide for an increase in taxes and does not introduce new tax rates, and the rules are aimed primarily at bringing the tax laws back to their pre-war state.
The law is expected to take effect July 1, 2023 – as stipulated by agreements with the IMF.
As Ukrainian News earlier reported, the bill is one of the 19 structural beacons of the four-year, $15.6 billion EFF program for Ukraine, which was approved by the IMF Board of Directors on March 31.
The program’s schedule calls for three tranches of SDR664 million ($893 million) to be disbursed to Ukraine after the first tranche in mid-June and October this year and in late February the following year after the first, second and third revisions, when commitments are evaluated for the end of April, June and December this year, respectively.
The IMF mission on the first review of the program is currently working in Vienna. Its results may be as early as the end of May.
