The Verkhovna Rada is proposing to allow households to run a business without registering as an individual entrepreneur, provided that they submit an annual tax return. This is stated in the message of the Verkhovna Rada on the Telegram channel, the Ukrainian News agency reports.
The Social Policy Committee recommended adopting the relevant draft law No. 8143 as a basis.
"The Committee decided to recommend to the Verkhovna Rada of Ukraine to include in the agenda and adopt as a basis the draft law on freedom of entrepreneurial (economic) activity of households (reg. No. 8143), which proposes to consolidate in Ukrainian legislation the subjectivity of the household (household economy) with the simultaneous provision of tax and economic benefits, which will lead to the intensification of economic activity of the population and the growth of citizens' incomes," the committee said in a statement.
These are households with an annual income of less than UAH 8 million.
The types of entrepreneurial activity may include: hairdressing and cosmetology services, legal advice, cleaning, nursing care, individual lessons (tutoring), individual childcare (governor); repair of shoes, clothing, furniture, electrical appliances, retail trade in food and non-food products from stalls and markets; passenger transportation services by road, cargo transportation services, and restaurant business.
The draft law also defines the principles of household income and expenditure. The expenditure side includes not only the costs of conducting business (economic) activities, but also the costs of maintaining each household member in the amount of 60% of the average monthly salary for the previous year.
The head of the parliamentary committee on social policy, Halyna Tretiakova (Servant of the People faction), who is among the authors of the bill, denied on Facebook that the committee was forcing Ukrainians to submit declarations.
"The committee is for Ukrainians to have a choice: either to register as a sole proprietor with the corresponding consequences in labor relations, fiscal, etc. or to conduct economic activity without registering as a sole proprietor, while making a household declaration. This type of declaration does not currently exist," the MP said.
She also added that households should have the opportunity to refund overpaid taxes on the amount of each household member's maintenance in the amount of 60% of the average salary in the country for the previous year.
As the Ukrainian News agency earlier reported, Prime Minister Yuliia Svyrydenko said that the International Monetary Fund had agreed to cancel the prior actions for a new loan program for Ukraine worth USD 8.1 billion, including the requirement to introduce VAT for individual entrepreneurs.
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