Every third Ukrainian receives a salary in “envelopes”, said a few weeks ago, the Minister sotspolitiki Andrey Reva. Shadow income is not taxed. As a result, the state loses billions of hryvnia, and the Ukrainians the right to higher pension and social security. The website “Today” found out what taxes have to pay Ukrainians and that may change soon.
Tax burden on wages is 41.5%. For example, to pay the employee a “clean” 10 thousand hryvnia, the employer must establish a payroll more than 14 thousand hryvnias. 2.2 thousand hryvnias of the single social contribution. This “tax” is distributed between the three funds. With the salary of 10 thousand UAH 140 UAH goes to the insurance Fund in case of unemployment (if you leave by agreement of the parties, with this Fund for another three months to get paid), 244 hryvnia to be paid into the insurance Fund in case of disability and 1815 UAH to the Pension Fund.
2 thousand hryvnias of a tax on income of individuals. 1200 UAH of this amount goes to the city budget, these funds repaired hospitals and schools, roads, implemented city programs for the improvement of the city etc 800 hryvnia – goes into the General state budget and are redistributed after every need (medicine, social policy, infrastructure, etc.).
150 UAH – military training. This “tax” was originally introduced as a temporary measure after the outbreak of hostilities in the Donbass. The funds are used to Finance the army.
What taxes pay payroll:
- Single social contribution (ERU) – 22%
- Tax on income of natural persons (pit) – 20%
- Military fee of 1.5%
So, almost half of the payroll is spent on taxes. As the managing parter of Baker Tilly Alexander Pochkun, opportunities to reduce taxes at the moment. “There is a pit, but it is the main source of income of local budgets. If we climb in personal income tax, then it must determine by what local governments should implement their programs “, – Alexander Pochkun.
Tax rates in Ukraine correspond to the average in Europe, said Vice-President of the Ukrainian Union of Industrialists and entrepreneurs Sergey Prokhorov. In Europe, on average the load on the salary – 40%. As the expert says, there are whole countries of European countries, where salaries are charged more than in Ukraine. For example, in Germany, the Baltic States.
At the same time, the expert in the field of public Finance Galina Tretyakov believes that the non-taxable minimum should be increased considerably. “I do not propose to tax the 3200 for each family member. If it is five, then this amount must be multiplied by five and twelve. And the amount of the overpaid tax should come. If a shifted fiscal year, it will return to the New year. I say that it will be as MPE, Yes, but people should make sure to get the money,” explains Tretyakov.
Note, in the beginning of last year, Ukraine has reduced the rate of ERUs from 37 to 22%. As a result, the Pension Fund deficit has grown to 145 billion. This year due to the increase in the minimum wage two times the deficit was reduced to 141 billion hryvnia.
What other taxes paid by the Ukrainians
Ukrainians also pay the value added tax (VAT) and excise duties on tobacco, alcohol, and petroleum products. VAT is 20% and excise taxes incorporated in the price of goods. For example, buying petrol on 100 hryvnia, approximately 44 of the hryvnia in value – excise fees and taxes. And buying in the supermarket sausage 100 UAH 20 UAH of this amount – the value added tax. These taxes experts call “indirect”, i.e. their size is already incorporated in the price of goods and services.
The excise tax and the value added tax takes the lion’s share of budget revenues. What if the officially unemployed Ukrainian, which declares zero income, can not pay Ust, personal income tax, but VAT has to pay all this tax is incorporated in the tariffs for communal services, prices for products, goods, etc.
By the way, according to the Ministry of economic development and trade, 34% of Ukrainian GDP is in the “shadows.” Hidden income is not taxed, the budget loses billions of hryvnia. Read more about why a third of the Ukrainian economy in the “shadow” and how to change it, you can read here. The high level of economy in the “shadow” is, in particular, and great growth potential. So, at the end of this year the Ukrainian economy, experts predict the world Bank to have risen by about 2%, similar to the forecast voiced by the NBU. Potentially, if you bring the Ukrainian economy out of the “gray zone”, the growth rate of official GDP can be accelerated tenfold.
A “tax” on pensions will be canceled, and the estate will have to pay more
In the framework of the pension reform the government in October, proposes to abolish the partial payment of pensions for working pensioners. Currently working Ukrainians have the right to receive only 85% of their pensions, the rest remains in the budget of the Pension Fund. According to article 47 of the law “On state pension insurance”, after charging 15% of the working Ukrainian remains the pension less than UAH 1870 (150% of the subsistence minimum for the disabled), will be paid a full pension. The experts say: hold 15% of the pension is not tax, and partial payment.
At the moment, in Ukraine about 650 thousand working pensioners. If a partial payment is canceled, then in October they will receive pensions 17% higher. For example, if at the moment employed Ukrainians receive a pension in 2000 hryvnia, on the first of October it will increase to 2352 UAH.
At the same time, the estate tax, which is pegged to the minimum wage, next year will increase twice. So, the tax is paid for the past year and considered payroll as of the first of January. Tax must be charged for apartments with an area of not less than 60 squares and home area of 120 square meters. If the ownership of the house and the flat – tax with a total area not less than 180 squares. In this case you need to pay for each “extra” square in excess of the norm. Local authorities can increase provision, for example, charge a tax on apartments area of between 60 and 80 squares.
For example, if there is an apartment with an area of 70 squares, when “norm” of 60 squares will need to pay only 10 metres, while the norm in 80 squares – not have to pay. Each “extra” square meter is not more than 1.5% of the minimum wage as of January first of last year. 2016 started with minimal 1378 hryvnia. Thus, this year for each square square surgery need to pay from 0 to 20.67 hryvnia. For example, the Kiev apartment of 100 square meters have to pay for 40 squares 551,2 hryvnia (if tax rate 1%).
We will remind, earlier “Today,” answered the major questions about the real estate tax.