tax-increase-in-ukraine-mp-explains-what-it-means-to-shoot-down-amendment-no-988-during-the-voting-for-the-law

Tax Increase in Ukraine: MP explains what it means to “shoot down” amendment No. 988 during the voting for the law

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During the voting for the draft law on a significant tax increase 11146-d, MPs did not support the key amendment No. 988. MP Yaroslav Zheleznyak spoke about the consequences of the “defeat” of this amendment, UNN reports .

Details

As I wrote, it was a huge mistake of the committee to combine all the positions into one amendment, which turned out to be 10 pages of text and .... fell in the hall without getting 226 votes. What does this mean in practice? In short, we will be left with the first reading version of the draft law on military duty. And since the government has not been able to write out the text properly in the three versions of the draft law, it is very clumsy

- Zheleznyak said.

He noted that due to the failure of the amendment, the following rules are introduced:

  • The CPT for all but sole proprietors of the simplified taxation system will be raised from the date the law comes into force, not from October 1;
  • The tax-free regime for sole proprietors of the simplified taxation system is still in effect from October 1;
  • there are no postponements of the January 1 deadline for anyone;
  • e-residents are also subject to military duty.

It is worth noting that the “shot down” amendment provided that sole proprietors located in the occupied territories were exempt from paying the military fee. It was also envisaged that sole proprietors who do not use the labor of employees are exempt from paying the military fee for one calendar month per year for the duration of their vacation, as well as for the period of illness confirmed by a sick leave certificate if it lasts 30 or more calendar days.

The amendment also provided for a deferral of the military fee for the first month in which the law came into force and the non-application of fines for non-payment for October.

It was also envisaged that the 5% rate would not be applied to income subject to annual declaration based on the results of 2024.

In addition, it was envisaged that the military tax for individual entrepreneurs would be set temporarily and canceled upon the termination of martial law (namely, on December 31 of the year when martial law is lifted).

Zheleznyak emphasized that the “knocking down” of the amendment would raise a lot of practical issues in implementing the law.

Recall

The Verkhovna Rada of Ukraine has adopted draft law No. 11416-d on a significant tax increase.

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