Two more bills on "economic booking" have been submitted to the Verkhovna Rada: they propose to book employees for UAH 20,400

Two more bills on "economic booking" have been submitted to the Verkhovna Rada: they propose to book employees for UAH 20,400

Kyiv  •  UNN

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Two other draft laws submitted to the Verkhovna Rada of Ukraine propose to allow companies to "reserve" up to 50% of their employees subject to military service by paying a fee of UAH 20,400 per person to the state budget.

Two more draft laws on "economic reservation" have been submitted to the Ukrainian Parliament, according to which it will be possible to book employees for UAH 20,400. The documents make it possible to book up to 50% of conscripts, persons liable for military service and reservists at an enterprise. The bills are registered on the website of the Verkhovna Rada , UNN reports.

These are the draft laws No. 11332-2 "On Amendments to the Tax Code of Ukraine regarding the requirements for the payment of a single social contribution for the reservation of persons liable for military service" and No. 11388 "On Amendments to Certain Legislative Acts Regarding the Peculiarities of Reservation of Persons Liable for Military Service".

According to the document No. 11332-2, business entities that book employees liable for military service  pay a fee to the state budget in the amount equal to one thousand two hundred tax-free minimum incomes ( 20,400 UAH)

Reservations are required for persons liable for military service who work or serve at enterprises, institutions and organizations that:

  • pay the unified social tax in excess of the equivalent of five minimum wages (over UAH 40 thousand);
  •  have a staff of 10 employees or more - up to 50% of the number of conscripts, persons liable for military service and reservists (including those employed under labor contracts).

The explanatory note to the document states that, given the current challenges of national security and defense, there is a need to ensure more efficient functioning of enterprises, institutions and organizations that are, among other things, critical to the economy and the life of the population as a whole.

According to document No. 11388, an Interdepartmental Commission on establishing the status of enterprises, institutions and organizations critical to the economy of Ukraine is established.  The Commission is chaired by the Minister of Economy of Ukraine.

The Interdepartmental Commission obliges enterprises, institutions and organizations that apply for the status of critical to the economy to have at least 10% of combatants and at least 10% of employees under the age of 25 and at least 10% of women.

Addendum

In June, the Verkhovna Rada registered the draft Law No. 11331 "On Industrial Policy and Predictability of the Real Sector of the Economy," which introduced the concept of "economic reservation." 

The mechanics of paying the increased military fee are outlined in the related draft law No. 11332 "On the specifics of paying the military fee for reservations for persons liable for military service.

At the time, Dmytro Natalukha, chairman of the Economic Development Committee, said that the draft law, which introduced the concept of "economic reservation," provides for the possibility for businesses to book 50% of employees who are liable for military service, but that this figure will most likely change downward.