The use of cash registers is just one of the planned de-shadowing steps; dozens of changes are planned to be made to the Tax Code.
We figured out what to expect for business and citizens from the new tax initiatives of the government, reports the Chronicle.info with reference to Focus.
MPs are actively discussing with the Cabinet of Ministers how to change the tax system in Ukraine by updating the Tax Code. The priority is to reduce the level of taxation of income, the introduction of a tax on withdrawn capital (TNVK) in a cut form, the opportunity for the self-employed to pay 5% income tax.
Tax Code: what new taxes can be introduced in Ukraine for businesses and citizens
Many economic experts of the proposal, basically, support. The key question is whether all tax initiatives will be really pleasant for business and citizens, or, as always, there are pitfalls. For example, in the form of total control over the income of citizens. Finance Minister Sergei Marchenko announced the introduction of indirect control of income against expenses back in the summer. This is the next step after the capital amnesty.
Salary for the worker. Can wage taxes be reduced?
Head of the Tax Committee of the Verkhovna Rada, People's Deputy Daniil Getmantsev on December 20 at the conference of the Ukrainian Business Council announced the reform of direct taxes. According to him, the tax committee of the Verkhovna Rada is discussing with the Cabinet of Ministers the consolidation of three payments into one — a single social contribution (ESV), personal income tax (PIT) and a military levy. They want to reduce the effective tax rate to 30%, followed by a decrease of 1% annually — up to 25%. Experts evaluate such initiatives positively.
Economist and coordinator of economic groups of the Economic Expert Platform Oleg Getman notes: «Now the burden on the wage fund is 22% ERUs, 18% personal income tax, 1.5% military tax. That is, together the face value is 41%. The effective rate, if calculated, is 34%».
Daniil Getmantsev also announced tax «buns» for those who will voluntarily file an annual tax return. There are other proposals.
«For example, we assume the possibility of reducing taxable income by half the minimum wage if the taxpayer has a person over 80 years of age», says the head of the relevant committee.
Another initiative is family taxation, in which you can use the benefits of relatives who do not receive income. True, this approach has its drawbacks. In order to qualify for some benefits from the state, the family will prove that its income is exactly that and completely white, including through the filing of an annual income declaration. By the way, bill No. 6539 & # 171; On the household (house economy) & # 187; On January 21, he was registered with the Verkhovna Rada.
Parliamentarians have other bold initiatives.
Faction «Voice» registered in the Verkhovna Rada two bills on reducing taxes on wages, No. 6548, 6549. The idea is the same as that of Getmantsev — to combine payroll taxes. However, they propose to reduce the rate to 20%.
In a comment to Focus People's Deputy Yaroslav Zheleznyak explains: «My sincere conviction is that 20% is definitely better than 25%. But 25% is definitely better than 40% or 34% if we are talking about the effective rate».
He acknowledges that the «Voices» does not contain compensators and will lead to a decrease in revenues to the state treasury — according to the calculations of the faction, by UAH 50 billion. annually.
«I think tax reform cannot be called that if there are compensators. Because it is a transfer of the tax burden from one to another. The only way to introduce compensators for tax reform is to expand the tax base. Conventionally, to bring people out of the shadows or to enable people who want to pay taxes to do so. Or create additional incentives», Zheleznyak noted.
Economist experts also talk about compensators: if state budget revenues decrease and new ones do not appear, it will be necessary to cut government spending items.
However, practice shows that the state can always find ways to get more taxes and payments. These can be traditional excise taxes or rent, the amount of revenue from which to the state budget is growing every year.
«You need to look at what budget items you can save on. As for social spending, verification needs to be carried out. Because there are problems with targeting. In our country, a fairly large part of social assistance goes to those who are not the poorest», warns Volodymyr Dubrovsky, senior economist at CASE Ukraine.
PSFs on salaries: the scheme can be covered up
Daniil Getmantsev has already announced in the media about the plan to limit the ability of legal entities to cooperate with sole proprietorships of the III group, or the so-called «salary sole proprietorships». We are talking about cases where the employer does not register the employee in the staff, but cooperates with him as with an individual entrepreneur, although in fact we are talking about full employment in the company.
Yaroslav Zheleznyak, however, is sure
Oleg Getman and Vladimir Dubrovsky call a compromise bill No. 5054-1, designed to separate real freelancers from «salary sole proprietors» #187;, according to a clear list of criteria.
Darina Marchak, head of the Center for Analysis of Public Finances and Public Administration of the Kiev School of Economics, emphasizes that most «salary sole proprietorships» not in the IT sector, but in trade, and a significant part of retail chains also work through fictitious entrepreneurs.
«The question is, will IT continue to be allowed to work with a low level of tax burden (thanks to «Diya City», — ed.), while other companies will not? Have any calculations been made on how retailers will react to such changes: will they hire employees or reduce their number? Won't this lead to an increase in the unemployment rate?» — lists a number of questions that need answers, Darina Marchak.
Cost control: how citizens will be controlled
In the summer of 2021, the Ministry of Finance announced the introduction of indirect control over income on expenses. The document is still being developed.
«We haven't seen the project yet. They asked for a draft — they don't have it yet. They promised to send it to our expert group as soon as possible,” says Oleg Getman.
Earlier, the Ministry of Finance spoke about a rather mild model — the need to confirm the origin of money only for large purchases.
At the same time, Vladimir Dubrovsky believes that in Ukraine, such an approach violates the presumption of innocence and opens up a huge field for corruption for inspectors.
Actually, a certain model of control is already working through the financial monitoring of banks, which are required to check the source of funds when buying, for example, real estate, cars, land. As a rule, documents on the income of bank customers are studied if the amount of the transaction (banking transaction) exceeds UAH 250-300 thousand.
People's Deputy Yaroslav Zheleznyak simply does not believe that the initiative voiced by the Ministry of Finance to indirectly determine income from expenses can be passed through the Verkhovna Rada at all, and emphasizes: & # 171; We already have financial monitoring in banks & # 187;. According to him, potential changes will not allow the state to attract more funds to the budget, because the main tax losses are not due to hidden incomes of individuals. Indeed, experts have repeatedly analyzed the situation with state budget shortfalls and noted:
The biggest losses are VAT rollovers, tax optimization schemes by large enterprises, illegal customs schemes and corruption.
Darina Marchak doubts that if the initiative of the Ministry of Finance is implemented, the tax service will have enough resources to carry out indirect control over expenses.
«This is a question of intellectual and IT resources. This can turn into a very well-functioning system when there is instant data exchange, a powerful analytical office in the tax service and algorithms that allow you to quickly check the financial condition of citizens and the commensurability of their expenses and incomes. But it should work automatically», Marchak says.
According to her, random tax checks will trigger a negative scenario: people will be indignant that they came to them, but not to their neighbor. This will further reduce the level of trust in state institutions, but is unlikely to really contribute to the deshadowing of income.
Easier than FOP: what will be the tax for the self-employed
The government plans to offer the self-employed to pay a minimum tax of 5% through «Diya» — without registration, reporting and other hassles. The same applies to the sphere of transportation — taxis. Recall that today, self-employed persons pay income tax annually in the amount of 18% plus 1.5% military tax.
«We propose the introduction of a special tax regime for the so-called additional income, now it is 27 types of activities. There is not even registration, but an application through & # 171; Dia & # 187; by any individual (not a private entrepreneur) and the provision of services by this person at a reduced tax rate without paying ERUs outside the framework of entrepreneurial activity and work anywhere,» Getmantsev noted.
At a meeting with the European Business Association there was a proposal to prescribe this rule for all self-employed people with a list of exceptions, and not to make a list of 27 possible activities.
Economists are generally positive about the new initiative.
«This is a fairly common worldwide practice. For example, a nanny or a cleaning lady wants to pay taxes, but it is difficult for them to register this sole proprietorship, submit reports, etc. In a number of countries, there are the simplest forms for such micro-businesses. It will be convenient for us to do this in «Die». This is a positive change, but not a global one — literally for several tens of thousands of people who are not paying anything now, but will pay 5% & # 187;, — says economist Oleg Getman.
Tax on withdrawn capital: to whom and how it will be offered NnVK
In Ukraine, discussions on the Withdrawal Capital Tax (DFT) have been going on for at least seven years, starting in 2015. This initiative was not supported by international experts, including the International Monetary Fund (IMF), because of the risks to the level of tax revenues and the administration of such a tax, reminds Darina Marchak.
« income tax on withdrawn capital. That is, funds are paid only when you withdraw them from the enterprise in the form of dividends. It’s about reinvesting here and not paying anything»,” Oleg Getman explained the essence of NnVK.
Daniil Getmantsev recently spoke about the form in which NnVK could be introduced in the country: «The tax on withdrawn capital, which we promised under the Polish, truncated model, is for enterprises with a turnover of up to UAH 200 million per year, as an option (then there can be applied or not, at will)». He predicts that NnVK will not be popular.
Economists Oleg Getman and Vladimir Dubrovsky, on the contrary, believe that the innovation should be extended to all business in Ukraine, and not just to the IT sector, which NnVK received after the adoption of the law «O Diya City» in December 2021. Recall that the law introduces special conditions for taxing resident companies «Diya City», the income of their employees and involved gig specialists. In particular, residents of the special regime will be able to choose at their own discretion which corporate tax to pay: a tax on withdrawn capital in the amount of 9% or an income tax of 18%.
Darina Marchak has a number of warnings about the initiative announced by Getmantsev. After all, if paying NnVK is more profitable than paying tax on the general system, this will encourage businesses to minimize income so as not to cross the limit of UAH 200 million.
«Generally, it is considered the best practice when the rules for paying taxes are unified across industries, sectors and business sizes. This reduces the risks of manipulation and simplifies the rules of work for the accounting department», said Darina Marchak.
She draws attention to the fact that in Ukraine, on the contrary, tax systems are multiplying every now and then.
«There are already two types — a general and a simplified tax system. And also «Diya City». The introduction of 5% without registration is the fourth type. NnVK is the fifth type. Because of this diversity, it is necessary to check whether tax rates are being manipulated, which increases the burden on the tax system», says Darina Marchak.
The list of initiatives includes possible tax deductions for tourist trips in Ukraine, for rental housing. Of course, to implement such a scheme, all these costs must be absolutely white.