slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
CONCEPT For reforming the tax system of Ukraine PowerPoint Presentation
Download Presentation
CONCEPT For reforming the tax system of Ukraine

Loading in 2 Seconds...

play fullscreen
1 / 26

CONCEPT For reforming the tax system of Ukraine - PowerPoint PPT Presentation


  • 83 Views
  • Uploaded on

CONCEPT For reforming the tax system of Ukraine. Cutting taxes and fees. Current taxation system : 22. Proposition : 9. Abolished : Fee for certain types of entrepreneur activity ( currently paid by 123 000 subjects )

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'CONCEPT For reforming the tax system of Ukraine' - darryl


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

CONCEPT

For reforming the tax system

of Ukraine

slide2

Cutting taxes and fees

Current taxation system:

22

Proposition:

9

slide3

Abolished:

  • Fee for certain types of entrepreneur activity(currently paid by 123 000subjects)
  • Fee as a surcharge for the natural gas to be paid by consumers of all types of ownership
  • Rent for transporting oil and its by-products via main pipelines and oil networks, transit transporting gas and ammonia through the territory of Ukraine
  • Parking fee for vehicles
  • Tourism tax
  • Fee for viticulture, horticulture and hop growing

Cutting taxes and fees

slide4

Transformation:

Cutting taxes and fees

slide5

Conversion of taxes from national to local:

  • Real-estate tax
  • Fixed agricultural tax

Cutting taxes and fees

slide6

Single taxbased on standard financial reports

  • Taxation basis: financial result defined according to standard financial reports, adjusted for a limited number of tax differences.
  • Number of taxable differences reduces from49 to3:
  • Depreciation
  • Forming reserves
  • Financial operations (securities transactions,interest cost)
  • Including differences regarding: expenses for education, repair, business trips etc. to be abolished

Reform of corporate profit tax

slide7

Quantity proportion

Earnings proportion

criterion 1:

Annual amount of earningsunder UAH 20 mln

Reforming of agrarian sector

criterion 2:

Farmland areaunderha 3 thd

Quantity proportion

Area proportion

slide8

CONCEPT

for reformingwage taxin Ukraine

slide9

Background for reforming SST: Statistics of Ukraine and UN

TAX LOAD ON WAGES (INCOME TAX + social insurance), %, 2013

Generaltaxload* onsalary incomesinUkraineexceeds1.5 times those in EU-27

UA

54.5%

EU

36.1%

* Sum of total wage taxes against total salary incomes

Plain decrease of rates of SSTand IITto average EU level would significantly reduce cash flow fromSSTand IIT

9

slide10

Background for reformingsalary taxes

Structure of salary incomesin 2013

INCOME RATE, %

Structure of salary incomesin 2013 EMPLOYMENT RATE, %.

In Ukraine over 70% of employed people get monthly payment less than 3 minimum salaries (МЗП). Incomes of these people make up over 50% of total salary incomes..

10

slide11

Single social tax (SST): reform patterns

Current model

New Model 1

New Model 2

Payroll

Payroll

Payroll

Accruing SST

at a rate from 36.76% to 49.7%

(depending on risk class)

Fixed SST

At a rate 37%of minimum salary

(in 2014 – UAH450.66 )

Fixed SST

At a rate 41%of minimum salary

(in 2014 –UAH499.38 )

Withholding SST from salary

at 3.6% rate

SST percent rate

15%

charged on salary exceeding minimum salary

SST percent rate

19%

charged on salary exceeding minimum salary

Withholding SST from salary

at 3.6% rate

Withholding SST from salary

at 3.6% rate

Incomes amount

UAH 189 bln

Incomes amount

UAH 143.5 bln

Incomes make

UAH 141.1 bln

wage taxation iit and sst
Wage taxation: IIT and SST

Example based on IIT rules and offered SST patterns

UAH

iit individual income tax model 1
IIT (individual income tax): Model 1

Current model

Proposed model

Monthly salary

IIT rate

Monthly salary

IIT rate

Under 10 MS (minimum salary)

in 2014 – UAH 12180

15%

Under 10 MS

(in 2014 – UAH 12180)

15%

From 10 MS

2014 – UAH 12180

17%

Charged on excess sum

20%

Charged on excess sum

from 10 to 17 MS

in 2014 – fromUAH 12180 to 20706

25%

Charged on excess sum

Over 17 МS

in 2014 – overUAH 20706

IIT earnings in 2013madeup UAH 58.9 bln

Additional earnings can amount around

UAH 3.5 blnor 5.7%

slide14

IIT (individual income tax): Model 2

Current model

Proposed model

Monthly salary

IIT rate

Monthly salary

IIT rate

Under 10 MS

(in 2014 – UAH 12 180)

15%

Under 10 MS

(in 2014 – UAH 12 180)

15%

From 10 MS

(in 2014 – UAH 12 180)

17%

Charged on the excess sum

20%

Charged on the excess sum

from 10 to 40 MS

(in 2014 – fromUAH 12 180 to 48 720 )

25%

Charged on the excess sum

From 40 MS

(in 2014 – over UAH 48 720)

IIT earnings in 2013madeup UAH 58.9 bln

Additional earnings can amount around

UAH 2.5 blnor 4.3 %

slide15

IIT (individual income tax): Model 3

Current model

Proposed model

Monthly salary

IIT rate

Monthly salary

IIT rate

Under 10 MS

(in 2014 – UAH 12 180)

15%

Under10MS

(in 2014 – UAH 12180)

10%

from 1 to 10 MS

(in 2014 – fromUAH 12180 to 12180 )

15%

From 10 MS

(in 2014 – UAH 12 180)

17% chargedon excess sum

from 10 to 40 MS

(in 2014 – from UAH 12180 to 48720 )

20%

chargedon excess sum

from 40 MS

(in 2014 – over UAH 48720 )

25%

chargedon excess sum

IIT earnings in 2013make up UAH 58.9 bln

Additional earnings can amount around

UAH 4.7 blnor8 %

slide16

IIT (individual income tax): Model4

Current model

Proposed model

Monthly salary

IIT rate

Monthly salary

IIT rate

Under 10 MS

(in 2014 – UAH 12 180)

15%

Under 5MS

(in 2014 – UAH 6090)

15%

From 10 MS

(in 2014 – UAH 12 180)

17% charged on excess sum

20%

charged on excess sum

from5to 17 MS

(in 2014 – from UAH 6090to 20 706 )

25%

charged on excess sum

Over 17 MS

(in 2014 – UAH 20 706)

IIT earnings in 2013make up UAH 58.9 bln

Additional earnings can amount around

UAH 5.1blnor8.5%

slide17

IIT (individual income tax): Model5

Current model

Proposed model

Monthly salary

IIT rate

Monthly salary

IIT rate

Under 10 MS

(in 2014 – UAH 12 180)

15%

Under3MS

(in 2014 – UAH 3654)

15%

Over 10 MS

(in 2014 – UAH 12 180)

17% charged on excess sum

20%

charged on excess sum

from3to 17 MS

(in 2014 – fromUAH 3654to

20 706)

25%

charged on excess sum

Over 17 MS

(in 2014 – fromUAH 20 706 )

IIT earnings in 2013make up UAH 58.9 bln

Additional earnings can amount around

UAH 8.9blnor15.2%

slide18

IIT (individual income tax): Model6

Current model

Proposed model

Monthly salary

IIT rate

Monthly salary

IIT rate

Under 10 MS

(in 2014 – UAH 12 180)

15%

Under1MS

(in 2014 – UAH 1218)

15%

From 10 MS

(in 2014 – UAH 12 180)

17% charged on excess sum

20%

charged on excess sum

From1to 17 MS

(in 2014 – from UAH 1218to 20 706)

25%

charged on excess sum

Over 17 MS

(in 2014 – over UAH 20 706)

IIT earnings in 2013make up UAH 58.9 bln

Additional earnings can amount around

UAH 14.7blnor25 %

slide19

Individual Income TAX: Unification of passive income rates

It is offered to unify IIT rates for all types of passive incomes: in particular:

Passive incomes considered as dividends paid to individuals who don’t pay income tax should be charged at 15 % IIT rate instead of 5%

IIT earnings in 2013makeup UAH 0.7 bln

Additional earnings can amount

UAH 1.5 bln

slide20

Single accounting period – quarter – regarding principal taxes:

  • Income tax, IIT, VAT, SST, Excise, Environmental tax, etc.
  • Effect – reducing number of reports and payments a year:
  • Cutting expenses of the state and business resources for administration of taxes
  • Simplifying conditions to pay taxes, improvement the presentation of Ukraine in the Doing Business ranking
  • Single window of issuing accounts and records
  • Tax records, SST reports and statistics should be submitted to a single body
  • Effect – cutting time for reporting

Administration of taxes

slide22

PRINCIPAL DIRECTIONS OF REFORMS

  • Budget autonomy
  • Transfer of certain part of national taxes to the local budgets
  • Capable communities
  • Decentralization
  • KEY LINES OF CHANGES
  • New system of budget equalization

Budget decentralization

slide23

Independent planning and approving of local budgets

United communities get authorities as regional centers

United communities receive direct budget relations

Certain part of national taxes is transferred to the local budgets

Ability to maintain local budgets in banks

Simplifying of procedures to obtain local guarantees to get loans from IMF

slide24

Further steps of the Government in decentralization:

  • Supporting changes to Constitution of Ukraine directed to power decentralization
  • “On local self-governance in Ukraine” (new edition)
  • “On voluntary association of territorial communities”
  • “On the grounds of regional state policy”
  • “On decentralization in the construction area – delegation of responsibility to the local authorities”

- “On municipal police”

slide25

CREATION

OF

FINACIAL INVESTIGATION SERVICE