In general, the new taxes will hardly affect the wallets of ordinary Ukrainians, but business will have a hard time this year. Taxes allow t...
Taxes allow the government to finance infrastructure, social projects, the army, education, maintain roads and other areas that affect the life of an ordinary Ukrainian. And despite the fact that every year citizens give the lion's share of their income to the state to pay taxes, many destinations do not receive the necessary funding.
In what amount and, in fact, what taxes will Ukrainians pay in the coming year? Taxes in Ukraine are conventionally divided into direct and indirect. Direct paid from the salaries of citizens of the country, they are divided into several groups: a single social contribution (ESV), income tax (PIT), and military tax.
Single social contribution or ERU
The funds are directed to the State Social Insurance Fund. Pensions, disability benefits, or unemployment benefits are paid out of it. The ERU rate is 22% of the minimum wage, i.e. 1430 UAH But already in October this year, the size of the ERUs will increase, as will the minimum wage (up to UAH 6,700), and will amount to UAH 1,474. FLPs or self-employed individuals who receive a pension or have a disability do not pay this tax.
Personal income tax or personal income tax
A tax that is paid on any income at a rate of 18% of the amount received. It applies to a wide range of income, the most important of which are: salary, incentives, bonuses, compensation; scholarship; funds received by FLP as a result of its work; funds received from the lease of property; investment income from securities; winning the lottery or gambling; interest from a deposit account. Personal income tax is not collected from pensions, insurance payments, state grants, and covid payments.
military levy
The tax rate is 1.5% and is fully allocated to the needs of the Armed Forces of Ukraine. It does not apply to the provision of intelligence officers, border guards, employees of the Ministry of Internal Affairs, and law enforcement officers.
The whole cunning of indirect taxes is that they can simply be overlooked since they are already included in the cost of goods and services.
Value Added Tax or VAT
VAT is included in the price of the product, its amount is linked to the added value, which depends on the field of activity of the manufacturer or service provider, and varies from 0% to 20%.
excises
And this tax also falls on the shoulders of consumers of goods such as alcohol, tobacco, fuel, and cars. Initially, the entrepreneur pays excise taxes, but part of them is displayed in a check to the buyer. Each type of product has its own tax rate, and in 2022 excises will rise in price by 5%, which will certainly affect the final cost of the product for the consumer.
What will 2022 bring us?
Law No. 5600 will equalize the tax rate of all owners of agricultural land. If earlier the tax rate ranged from 0.1% to 3%, then from January 2022 the rate is 5% of the cost of the site. Thanks to the introduction of this norm, the cost of a plot of land will increase by 5 times, but fiscal officials keep saying that the law will allow agricultural activities to be brought out of the shadows. Those who grow vegetables for sale on their plot and receive from this income in the amount of 12 minimum wages, i.е. 78 thousand UAH
It will also be hard for Ukrainian advertisers who work on such international platforms as Google and Facebook. Law No. 4184 obliges Internet companies without registration in Ukraine to pay 20% VAT for the sale of their services. And again, this 20% will fall on the shoulders of users who advertise their products/services on the Google and Facebook platforms.
Tax innovations will also affect Ukrainian IT specialists. In 2022, the Diya. City pilot project will be launched - a special legal and tax regime for IT companies. This means that for the first time there will be a tax on withdrawn capital. Residents will have the opportunity to choose between an income tax (18%) and a tax on withdrawn capital, which will be 9%. As for the taxation of income of IT workers, the following rates will apply personal income tax - 5%, ERUs - 22% of the minimum wage, military duty - 1.5%.
In general, the new taxes will hardly affect the wallets of ordinary Ukrainians, but business will have a hard time this year. The increase in the tax burden will be especially acute for those who advertise their business on the Internet, the IT sector, developers, and the agricultural sector.
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