Last week, the Verkhovna Rada of Ukraine registered draft law \u21167406 “On the collection and accounting of a single social contribution (SSC) to the obligatory state social insurance”. And the business representatives are greatly concerned about that new document, especially given such a difficult time in Ukraine.<\/p>\n
It should be noted that the name of the draft law is misleading as it mentions only the SSC, while the draft proposes changes also to the PIT (personal income tax).<\/p>\n
Thus, the document proposes a selective change in the rules only for the taxation of salaries. Thus, it is suggested to introduce a progressive scale of personal income taxation at the rates of 9% – 18% -25% for the PIT<\/strong> and at the rates of 11% -22% – 29% for SSC<\/strong>.<\/p>\n It is obvious that such measures create an additional burden on business during the war while companies continue to work, support the country and pay salaries to employees. This will be especially a hard hit on honest businesses as they transparently pay high salaries to skilled workers.<\/p>\n Moreover, over-regulation and increased tax burden can eventually lead to such negative phenomena as increasing the value of goods and services of honest companies, shadowing salaries and the economy as a whole, the potential brain drain, and so on. Such measures will in no way contribute to economic recovery, unemployment reduction, or the socio-economic situation (as envisaged in the EBA explanatory note).<\/p>\n Besides, the novelties will not affect the reduction of the gap between PIT and SSC for taxpayers, as well as beneficiaries of existing low-tax regimes in Ukraine.<\/p>\n Moreover, business considers it premature to talk about raising taxes, given the lack of an effective fight against corruption, the shadow economy, and so on.<\/p>\n The European Business Association has consistently advocated for a reduction in the tax burden on salaries, the introduction of simple and clear tax rules, and their strict implementation.<\/p>\n Therefore, the EBA community appeals to the Verkhovna Rada Committee on Tax and Customs Policy not to support draft Law \u21167406<\/strong> as one that contains significant risks for honest business and the economy.<\/p>\n","protected":false},"excerpt":{"rendered":" Last week, the Verkhovna Rada of Ukraine registered draft law \u21167406 “On the collection and accounting of a single social contribution (SSC) to the obligatory state social insurance”. And the business representatives are greatly concerned about that new document, especially given such a difficult time in Ukraine. It should be noted that the name of […]<\/p>\n","protected":false},"author":23406,"featured_media":414469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[15564,15563,15571],"tags":[],"class_list":["post-788455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lobbying-news-en","category-main-news-en","category-press-releases-en"],"_links":{"self":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/788455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/users\/23406"}],"replies":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/comments?post=788455"}],"version-history":[{"count":0,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/788455\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media\/414469"}],"wp:attachment":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media?parent=788455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/categories?post=788455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/tags?post=788455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}