The Cabinet of Ministers of Ukraine approved on Monday a bill on amendments to the Tax Code and certain other legislative acts of Ukraine that was drawn up by the Finance Ministry, according to the official Web site of the government.
The proposed amendments abolish penalties for the failure to pay a single social contribution by single tax taxpayers in 2010, and also exempts from such payment pensioners and disabled people registered as entrepreneurs under the simplified taxation scheme, the statement reads.
The amendments also suggest cancelling the 50% markup on fixed tax rates imposed on employers for each employee.
"This should encourage entrepreneurs to legalize labor relations and help reduce unemployment," the government said in the statement.
In addition, the new version of the bill cancels the requirement to annually re-register the certificate of a single tax taxpayer, and a requirement to receive a confirmation of labor relations with employees from the tax authorities. According to the government’s press service, this will help deregulate business activities, reduce expenses of small businesses, and simplify administration.
The government also emphasizes that the bill will encourage domestic production, as the document suggests reducing by half the rates of tax on the sale of their products by single tax taxpayers (1.5% if VAT is paid, and 2.5% if VAT is not paid, instead of 3% and 5% respectively). This regulation is expected to help reduce the dependence of the national economy on imported products.
