Policy Papers

• 03.06.2010

  Reforming the Simplified Taxation for Individual Entrepreneurs in Ukraine

  (Code:PB_01_2010)

  The simplified taxation system was introduced in 1998 in order to promote legalisation and development of individual entrepreneurs’ activity and small business. It is comprised of unified tax for physical persons and legal entities and fixed tax for physical persons. However, there is strong evidence for a massive misuse of the current system of taxation of individual entrepreneurs to reduce the tax burden of companies. Besides, there is a contradiction between the regulation on simplified taxation and compulsory pension insurance, which raises concerns about future pension provision of individuals working under simplified taxation. At the same time, the simplified taxation is important for many people, as it provides them with opportunities to work and earn income.

  Attached file  (110.9 kb)
  Authors:  Otten Thomas, Betliy Oleksandra, Кірхнер Роберт, Джуччі Рікардо
  Tags:  German Advisory Group, tax