Danylo Getmantsev, head of the Verkhovna Rada’s Tax Committee, said this week that once the military conflict ends, the government will have to reform the simplified tax system in order to more effectively combat “salary-based sole proprietorships.” According to him, this system is currently being used on a massive scale to evade taxes. However, this state of affairs hinders Ukraine’s European integration efforts.
“This practice must be eliminated for one simple reason: we need to choose between EU membership and these ‘cute little’ tax evasion schemes.”
Integration into European fiscal control and taxation systems will require Ukrainian lawmakers to harmonize the country’s legislation in this area.
“Therefore, sooner or later we will have to block the possibility of using the simplified tax system to evade taxation,” he emphasized.
At the same time, one possible solution to the problem in the future could be to prohibit third-group sole proprietors from using the single-tax regime when doing business with legal entities. However, the committee chair acknowledged that resolving this issue has been postponed for the duration of the war.
Getmantsev also said that, at this time, entrepreneurs should not be bothered at all with any issues related to wages. Their main task is to create jobs and keep the economy functioning.