Radical revision of taxes for private entrepreneurs in Ukraine

The single tax system for individual entrepreneurs (PE) in Ukraine requires changes. Instead of encouraging small business development, the current mechanism allows tax avoidance.

The head of the Committee on Finance, Tax and Customs Policy, Daniil Getmantsev, spoke about this in an interview with Telegraph. “If we are talking about a specific single tax model, then the first thesis is: we will not change it during the war. And I have spoken about this more than once. The second thesis: we will have to change it due to the fact that the existing single tax model, instead of stimulating small businesses, has become a tool for evading taxes for medium and large businesses, masquerading as small ones in order to minimize taxes. The European Union will not accept this, and here I absolutely agree with our partners,” he said.

According to Getmantsev, it is necessary to follow the example of those countries that have already walked the path that Ukraine must go through. These are primarily Eastern European countries. “Definitely not France or Germany, which had completely different opportunities, but Eastern European countries that became successful,” he said.

Earlier, Getmantsev said that Ukraine could follow the example of Poland by developing changes to the taxation system. However, in the Ukrainian version, a number of features will have to be taken into account.

Let us note that in Poland in 2023 the limit on transactions for Polish “simplified” citizens is 2 million euros per year, from 2024 it will increase to 3 million euros per year. Rates for the simplified tax system in Poland range from 3% (gastronomy) to 17% (accountants, psychologists, brokers, etc.). In Ukraine, everyone pays 5% of the single tax, being in the third group of the single tax.