The National Revenue Strategy envisages a review of the simplified taxation system with the aim of introducing differentiated taxes for individual entrepreneurs. Deputy Minister of Finance Svitlana Vorobei reported that the Ministry of Finance took as a basis the Polish experience of taxation of small and medium-sized businesses, where a system operates with different rates from 2 to 20%, depending on the situation in the economy.
It is noted that the highest rates will be applied to "salaried" natural persons - entrepreneurs, that is, those used to replace labor relations with civil law or relations with natural persons by entrepreneurs. According to Vorobei, this is aimed at creating a level playing field for competition and supporting employment with hired workers.
The Deputy Minister of Finance of Ukraine added that specific rates have not yet been determined, and their introduction involves a broad discussion with business representatives as part of a public process.
According to the National Revenue Strategy, approved by the Cabinet of Ministers, it is envisaged to reform the system of simplified taxation by limiting its application to legal entities, introducing safeguards to prevent abuses, raising the VAT registration threshold and increasing the effective tax rates to the level of the general taxation regime. The introduction of these changes will contribute to the provision of stable tax revenues, amounting to approximately 0.9% of GDP, according to the Ministry of Finance, in the period from 2020 to 2022.
