Entrepreneurs approved concept of the simplified taxation system

On March 3rd, 2011 the Committee of Manufacture and Regulatory Politics and Entrepreneurship together with the Council of Entrepreneurs of Verkhovna Rada of Ukraine with the participation of Tetyana Pavlyuk, President of Federation of Business and Intellectual Property Estimators held open public hearings about “what the simplified taxation system should be”. More than 350 representatives of the movement of entrepreneurs discussed and approved the concept of draft law “About system of the simplified taxation” that was developed by Council of Entrepreneurs of Verkhovna Rada of Ukraine. One of the main objectives of the system is to allow the self-employed people to work and to create new jobs. The developers of the draft law propose to simplify the taxation, to reduce tax burden for the fair taxpayers, and to remove the loopholes for the taxes optimization. Andriy Panaetov, Member of Coordinating Committee of SME and Assembly and Tetyana Zacerkovna, Head of PR and International Relation Committee of Auditor Union, presented the main criteria of the draft law “About system of the simplified taxation”.  The presenters indicated the advantages of the proposed model of the simplified taxation system:
  • Increase of the revenue value that provides the right to pay the single tax and possibility to choose the rate of single tax due to the turnover and number of employees;
  • Minimal rates of the single tax for self-employed entrepreneurs;
  • Possibility for the certain individuals who use the simplified taxation system appropriate payments for goods and services to the total costs of legal person or body;
  • Very simple accounting and time saving of entrepreneurs as the certificates of single tax payers will be issued with no fixed term.
As the conclusion of discussions, the participants of public hearings approved the concept of draft law “About system of the simplified taxation”. Natalya Korolevska noted that after the wide discussion of the concept, adding the changes and improvements to the concept, the draft law would be worked out for the transfer to the Cabinet Council and registration in Verkhovna Rada. Ukrainian Hi-Tech Initiative participated in the development of draft law “About system of the simplified taxation” and in the public hearings and discussions. Victor Maznyuk, President of Ukrainian Hi-Tech Initiative noted that it is very important for our business to have effective system of simplified taxation as it will allow Ukraine’s IT industry to become more competitive and accelerate its growth.