Taxes: how many Ukrainians will have to pay the state in 2017

In Ukraine at the beginning of 2017 all employers will have to pay a single social contribution (tax retirement Fund). Before then, business can declare zero income and not to pay taxes. The changes will primarily relate to “seasonal workers”, many of them, experts believe, will be forced to close. In addition, the growth of the minimal salary will lead to the fact that small business will not only have to raise the salaries of employees, but also to spend more money on taxes. Also in 2017, the Ukrainians with an “extra” squares will have to pay the estate tax.

Entrepreneurs life will become more difficult

From January 1 all businesses will have to pay a single social contribution (ERU), even those who submit to the tax blank reports. The contribution is 22% of salary. Given that the minimum salary in 2017 – UAH 3200, and the size of the fee for “dormant entrepreneurs” – half of the minimum, all entrepreneurs with zero income have to pay 352 of the hryvnia.

“For the first time in the history of Ukraine business taxed with missing income. The positive is that it is stimulated to close of those who were not working, but that it was possible to find other levers. The most important thing to close should be people who seasonally provide themselves with work, not to work, and to go into the shadows”, – said the Chairman of the largest regional business Alliance “Parada” Elena Eremenko.

“For the first time in the history of Ukraine business taxed with missing income. The positive is that it is stimulated to close of those who were not working, but that it was possible to find other levers. The most important thing to close should be people who seasonally provide themselves with work, not to work, and to go into the shadows”, – said Elena Eremenko.

In addition seasonal workers will close those who virtually no entrepreneurial activity is not carried out. “In Crimea, I had open emergency. And my husband. I pay taxes when the activity was open and prolonged. When I activity was not prolonged, and there was no income, I do not pay taxes. Such was the law. That’s why I didn’t feel the need the damn thing to close. Now, beloved, the President signed a law that, I have activity or not, I have to pay. And the President doesn’t want to ask, why should I pay taxes if I have no income? And people like me?” – wrote on his page on the social network designer Elizabeth Bogutskaya.

Another “blow” for small business – improving the minimal salary. Most entrepreneurs, said Elena Eremenko, working in the “gray” and part of the salary is paid in envelopes. If at the moment the minimum salary with which to pay taxes, 1600 hryvnias in 2017 this amount will increase to 3200. We will remind, the tax burden on wages is 41.5% (22% of ERUs, 18% personal income tax and a 1.5% military duty).

Real estate tax

In 2017 , the Ukrainians will have to pay the estate tax, though not all. The tax is paid up until the end of August. The money charged for each square meter in excess of the standards. According to the tax code, most will have to pay into the Treasury for the apartments, which are rented.

Interest tax rate ranges from 0 to 3% of the minimum wage. Local authorities establish not only the tax rate but also determines which square meters of living space are considered “extra”. For example, the city Council took the following decisions for each “extra” square meter to collect 1% of the minimum wage (12,18 hryvnia for 2015-th year). Resident of Kiev, who owns two apartments a total area of 140 square meters, will have to pay the tax for 80 squares (the norm for apartments in the capital is 60 square metres) – 974 UAH.

At the same time, the city Council in Sumy decided with every “extra” square to collect 2% of mentorplace (24.3 UAH). That is, the owner of two apartments with a total area of 140 square meters in Sumy will have to pay UAH 1948. And the owner of the same estate in Odessa will only pay for 20 square meters (local authority established “norm” for apartments and 120 square meters) – 486 hryvnias.

According to the law, living area are:
• Residential building
• Extension to the house
• Apartment
• In a communal room
• A house in the country
• What kind of property you can not pay

For the property in the exclusion zone, dormitories, emergency housing to pay tax do not have to. Besides, the law is not subject to tax the property of orphans and single mothers raising a disabled child. No need to pay tax on kindergartens, public buildings, temples.

Prior to July 1, the IRS will send out decision notifications and receipts with tax amounts. You need to pay no later than August 28. In case, if the receipt of payment of a flat tax, which, for example, already sold, or if a receipt did not come, but under the law the estate should be taxed, you need to contact the local office of Fiscal services.

The tax is levied once a year. In addition, owners of large homes (over 300 square metres for apartments and 500 houses) will have to pay 25 thousand hryvnia. For example, the owner of the apartment with an area of 310 square meters in Kyiv before July 1 must come to payment system 28 thousand hryvnias. By the way, “luxury tax” in the amount of 25 thousands will have to pay for cars that cost more than 750 times the minimum wage (1 million 33 thousand hryvnias).

If you do not pay tax until 28 August, the tax inspector may impose a debt on the property in a tax lien. If the tax is not paid for a long period of time the property is sold by court order. In addition, for tax evasion are criminalized (article 212 of the CCU).

New tax on pension

The Cabinet of Ministers to announce the launch of the funded pillar of the pension system. If this can be done, the Ukrainians will have to pay extra few percent of their income to individual retirement account. The collected funds can be spent after retirement.

If the cumulative level of the run, Ukrainians are younger than 35 years will have in 2017 to pay extra 2%, and 2022 – 7% of salary. Ukrainians older than 35 but younger than 55 years may voluntarily join the funded system and pay contributions.

.”To make it so that pensioners receive a decent pension only due to the social system, is impossible. To this conclusion came 20 years ago, but nobody had the political will to change the situation. To make pensioners rich, you need to run two more columns: mandatory and voluntary funded levels,” explains the expert in the sphere of pension provision Galina Tretyakov.

Senior researcher of the Institute of demography and social studies Lydia Tkachenko said: at the moment it makes no sense to start a savings system, moreover, the expert believes that there is no possibility to do it in 2017 not.

“Of course, will not start. It is possible. In the Memorandum, which was signed by our leaders of the country with the IMF says that Ukraine is going to refrain from cumulative level. The law second level registered for a long time, but there are no dates. The bills were dates, but the bills remained bills,” – says the expert.

Mykola Shambir also suggested that the run accumulative tier of the pension system this year will fail. “Parliament is a bill that tells about the introduction of a funded system since July of 2017. Of course, it was filed a long time ago. We can say that the decision about the launch of a funded system to launch should take about a year,” believe in PF.