Tax surprise “under the Christmas tree”: what has changed and why entrepreneurs massively close

From the first of January of this year physical persons-entrepreneurs are obliged to pay a Single social contribution (ERU) to $ 704 of the hryvnia even in that case, if you declare zero income. Innovation has led to the fact that for a short period in Ukraine, according to the service Opendatabot, closed more than 100 thousand entrepreneurs. Hardest the new normal “hit” for businesses with seasonal income. The website “Segodnia” figured out how the mandatory ERUs may affect Ukrainian business.

“Tax non-existent income”

“For the first time in the history of Ukraine business taxed with missing income,” – commented on the innovation, the Chairman of one of the largest regional business unions Elena Eremenko.

The expert notes: many of the “seasonal workers” are closed only in order not to pay taxes, their activities they continue. “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”, – says Elena Eremenko.

So, since January of this year 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” of the first group (work in the market or not use work of hired employees) – half of the minimum, all entrepreneurs with zero income have to pay 352 of the hryvnia.

Photo: archive

Entrepreneurs of the second and the third group (the business entity with not more than 10 employees and revenues up to 300 thousand UAH, or natural persons – entrepreneur with revenues up to five million) will be forced to pay the hryvnia 704 ERUs. Before that, entrepreneurs had to pay the unified social tax and 5% of income only in the case if you were a business activity.

According to the service Opendatabot for three weeks, their businesses shut down about 120 thousand people (a total of 680 thousand) Ukrainians tried to get to close until January to avoid paying taxes. As a result, the departments of registration of natural persons formed a huge queue.

To close their businesses Ukrainians pushed another decision of the government – raising the minimum wage twice, to 3200 hryvnia. Recall that with each paycheck necessary to pay 41.5% of taxes. The majority of small business formalized its employees on the minimum wage – 1600 UAH. Those who already had little income, were forced to close.

“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.

For those who do not have time to close, I propose to introduce a “grace period”

In the Parliament registered the bill No. 5633, according to which entrepreneurs, who did not liquidate exempt from tax in the first quarter of this year (i.e. three months). “If such a person during this time, not received income, it is exempt from payment of the unified social contribution of UAH 704, as it was provided before 1 January 2017”, – stated in the explanatory note to the bill.

To close the FOP is enough to submit an application for registration of termination of entrepreneurial activity of a natural person – entrepreneur and
the original passport. After that, the state Registrar issues a notification about the state registration of termination of entrepreneurial activity of a natural person-entrepreneur. On the Internet there are dozens of ads in which the intermediaries for 900 hryvnia are offered to help close the FOP in one day. Under the law, to close the FOP may a stranger, if to issue a notary power of attorney.

“I closed the FOP two days another two weeks ago. The first time came – there was a queue and has not remained intact. The second time came early. No money is required. Prior to the 2014 Popy closed for a few months, then needed help from the tax and the pension Fund that Fopa no debts. Now the procedure is simplified. To close easier. Actually, I think it’s OK don’t work, cut ‘ em off. And if you work but do not claim your income – pay at least the minimum payment”, – says the businessman from the Dnieper Irina.

By the way, in an interview, “Segodnya” Deputy Chairman of the Pension Fund (PF) Mykola Shambir a few months ago, said that at present considered the possibility of requiring all workers to pay ERUs.

Photo: archive

Note, in Ukraine there is the solidarity pension system. Working Ukrainians pay the tax to the Pension Fund ERUs. These funds provide today’s retirees. However, due to the fact that some of the salaries are in the “shadow” and not all workers pay ERUs, the Pension Fund has a huge deficit of 145 billion hryvnia at the end of 2016. Officials are sure to pensioners receiving more working Ukrainians must withdraw their salaries from the “shadow” and in good faith to pay taxes. Another reason for the shortage is low salary.