Prime Minister: Business will get maximum freedom

Ukraine must shape a solid economic rear that will allow it to provide the army and the country with everything they need, Prime Minister of Ukraine Denys Shmyhal stressed in his video address on March 15 2022.

«Obviously, the economic and tax system that existed in peacetime is unable to correspond to the challenges we are facing nowadays. Therefore, in close cooperation with the President of Ukraine, with the Verkhovna Rada people’s deputies, we have embarked on a complete reformatting of the economic model of Ukraine», said the Head of Government.

According to the Prime Minister, business will get maximum freedom, in particular:

• reduction of taxes;
• removal of all regulations;
• facilitated access to finance;
• liberalized labor relations.

Thus, at the initiative of the Government the Verkhovna Rada supported a draft law that significantly expanded an opportunity to use the single tax option during the martial law effect for medium and large businesses.

«Enterprises with a turnover of up to UAH 10 billion will have a chance to switch to the payment of a single tax. We remove all other restrictions regarding the number of employees and kinds of activities, except for excisable goods and gambling business. Instead of VAT and income tax, entrepreneurs will pay only 2% of turnover», Denys Shmyhal said.

According to the Prime Minister, individual entrepreneurs of the I and II groups will pay a single tax on a voluntary basis. Also, individual entrepreneurs will not pay USC [Unified Social Contribution] for their mobilized employees. The state will do it instead. «For the period of martial law, individual entrepreneurs will not pay USC if they do not receive income. Sanctions for violating the ‘PRT law’ [Payment Transaction Recorders] will not be applied until the end of martial law», noted the Head of Government.

The Prime Minister added that for the period of starting from February 24, 2022, until the end of the year, taxpayers are exempt from paying for land in areas of active hostilities. Besides, VAT will not be paid on goods destroyed during the war as well as handed over for the defense needs.

«Moreover, Excise duty on fuel will also be abolished, while the VAT rate on these items will be reduced from 20% to 7%», Denys Shmyhal noted.

The Head of Government emphasized that within a few hours after the entry into force of these laws, the Cabinet of Ministers would adopt all necessary bylaws to ensure the new tax system operating already this week.