Personal Taxes

MP Hetmantsev initiates the unification of the unified social tax, earnings tax and navy tax and progressively lowers the efficient fee to 25%

Deputy of the parliamentary group of the People’s Servants, chairman of the parliamentary committee for finance, taxation and customs policy Danylo Hetmantsev initiates the unification of a single social tax (UST), personal income tax (PIT) and military tax in a single tax with a gradual reduction of the effective rate to 25 %.

He announced this in an interview with the Ukrainian news agency.

“There is a bill that I developed. I wanted to register it before the New Year, but the discussion with our entire team dragged on a little. I do not want to present a bill that will consolidate stillborn, “said the MP.

According to Hetmanzew, the main idea is to combine the UST, personal income tax and military tax into a single tax with a reduction in the effective tax rate.

“Now we have an effective rate of 37%, nominally – 42%. We suggest lowering it to 30% and then decreasing it by 1% annually to 25%. Simply put, so the family can make the statement. We want to encourage the explanation by increasing tax deductions. That means we’re giving the person making the return the option to deduct a large amount of taxable income, “he added.

For example, if a person supports a retiree over 80, they have the right to reduce their taxable income by a certain amount.

“When you rent a place to live, you have the right to reduce your taxable income by a certain amount. And encourage people to submit returns and teach them how to make their financial lives. And we propose to introduce a tax on withdrawn capital based on the Polish model – up to UAH 200 million in sales. If your income is up to UAH 200 million for the whole year, you can optionally use the tax on the withdrawn capital, “Hetmansev said.

As the Ukrainian news agency previously reported, in August 2021, Danylo Hetmantsev allowed a reduction in the tax burden on the salary fund from 2023.

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