Ukraine's Government wants to raise tax to 20% for individual service providers – Hetmantsev
For individual entrepreneurs who provide services, the Government of Ukraine wants to raise the tax to 20%.
The Chairperson of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, Danylo Hetmantsev, said this in an interview for Novosti.LIVE, the Ukrainian News agency reports.
According to him, Ukraine is considering a model of taxation of individual entrepreneurs based on the example of Poland.
The Polish model of taxing entrepreneurs provides for a higher limit for transactions of EUR 2 million, while in Ukraine, the limit is UAH 7.8 million.
At the same time, different types of activities are subject to different tax rates.
For example, the services of commerce are taxed at 3%. The manufacturing industry is taxed at low rates. And service taxes range from 12% to 20%.
"Yes, we are currently considering this model. We often hear proposals from businesses and experts to introduce taxation similar to that in Europe. After studying the examples of several countries, we took the Polish model as a basis, which is the most appropriate for us. Now, we are considering the possibility of its implementation in Ukraine. Besides, the IMF requires us to make changes in the system of the single tax, which — let's be honest — has turned in Ukraine from a tool for supporting small businesses to a system of tax evasion for large and medium-sized businesses," the Hetmantsev said.
As the Ukrainian News agency earlier reported, the Verkhovna Rada returned taxes to the pre-war level in August.
On August 1, the single tax rate of 2%, which was introduced for taxpayers of the 3rd group (legal entities and individual entrepreneurs) from April 1, 2022, was canceled.