Upload
cordelia-sandra-heath
View
216
Download
0
Embed Size (px)
Citation preview
State Tax Administration of Ukraine
Taxation of Small Businesses in Ukraine and Underlying Tax
Risks (Current taxation regimes for small enterprises as source of wide-spread practice for tax evasion; Legislative regulation of taxation
related issues as element of program for promotion of development of MSE)
Conference on “Taxation of Micro and small Businesses”
May 4 – 6 of 2011, Tbilisi, Georgia
Criteria for assigning of taxpayers to large, medium and small taxpayers’ groups
а) small Legal persons
Gross income < 70 million Grivna (6 million €)Number of employees < 50 persons
Natural persons and subjects involved in economic activities
b) large Legal persons
Gross income > 100 million Grivna (8,6 million €)
Number of employees > 250 persons
с) medium All taxpayers, not included in groups a) and b)
Small business taxation systems
General
Unified tax for legal and natural persons – subjects involved in economic activities
Flat tax for subjects involved in economic activities – natural persons Sim
plifi
ed
Unified tax
Legal persons
Gross income < 1million Grivna (86,5 thousand €)Number of employees ≤ 50
Natural persons – entrepreneurs Proceeds from sales < 500 thousand Grivna (43,3 thousand €) Number of hired staff ≤ 10
The system of unified tax regime shall not extend to following entities:subjects involved in economic activities, which are subject to special patenting; Trusts , insurance companies, banks, other financial -crediting institutions and non-banking financial institutions; Natural persons – entrepreneurs, who are involved in trade with tobacco and alcoholic beverages and combustive-lubricating materials Gambling business and related activities, conducting of lotteries; Currency exchanges Producers of excise goods, export-import of such goods, wholesale and retail trade with combustive-lubricating materials Extraction and production of precious metals and stones, wholesale and retail sales of such make.
Unified tax
Legal persons 6% of proceeds from sales + VAT 10% of proceeds from sales in case of inclusion of VAT in unified tax + unified social contribution (from 36,7% to 49,7%)
Natural persons From 20 to 200 Grivna per month (1,7-17,3€) + unified social contribution (no less than 34,7% of minimum wages - minimal amount of unified payment for April shall amount to 960 Grivna х 34,7% = 333,12 Grivna.
Tax rates
Exemptions:Profit tax ;VAT;Tax on income of natural persons ;Land tax ;12 other taxes and duties .
Exempted from requirement of maintaining of cash registersAnd benefit from simplified accounting
Flat tax
Natural persons – entrepreneurs, who sell goods and offer related services on markets Gross income thousand Grivna (10,3 thousand €)Number of wage laborers≤ 5
Restrictions:
Are not authorized to trade with alcoholic beverages
Tax rates:
From 20 to 100 Grivna
Exempted from: Maintaining of accounting; From requirement of maintaining of cash registers
Share of proceeds from subjects of economic activities taxed on the basis of simplified tax regime as of 2010
Total Simplified taxation
Share in %
Number of subjects (legal and natural
persons) (thousand) 3570 1400 39
Proceeds into budget (million Grivna)
210 1,9 0,9
- Splitting of a business;
-Non-disclosure of proceeds due to failure of accounting or exemption from use of cash registers;
- Provision of fictitious services
- Cashing and etc.
Schemes of tax evasion and minimization of tax payments
Scheme of provision of fictitious services or cashing
Ordinary company >> 1
moneyBuffer company >> 2
Entrepreneur, taxed by simplified regime >> 3
Fictitious services (works)
Budget 200 Grivna
Minimization of payments
Withdrawal of 500 Grivna
money
Fictitious services (works)
Scheme of tax evasion through splitting of business
Minimization of tax on income of natural persons and contributions into social funds
Budget 200 Grivnas (2400
Grivnas per year)
Company “a”
Hiring of employees by entrepreneurs, who benefit from simplified tax regime («b»)
(«b»)
Budget loses in tax proceeds around 1
billion Grivna from income tax of
natural persons and 2 billion Grivnas in social contributions
Money
Services (works)
Legislative regulation of taxation issues as element of program on promotion of development of small businesses
•Starting from 01.04.11 the Tax Code prohibits payers of income tax to charge to expenses amounts spent on procurement of goods (works, services) from natural persons, who are taxed by unified tax. (not considered as a deductible expense)
• “Tax holidays” for small taxpayers, who pay income tax.
• Simplified system of registration (single window principle, principle of self-declaration)
• Reduction of licenses and permits for implementation of different types of economic activities
• Further reformation of simplified taxation system