Wednesday , June 7 2023

Ukraine's high wages are subject to tax increases: Cabinet minister changes ERU.


The cabinet minister wants to fill the budget by taxing high income and high profits. On Thursday, the government approved a bill to change the size of the integrated social contribution (ERU) resulting from salaries in excess of the minimum wage (CHF 56,000). According to the Treasury, it will reduce the Pensfund deficit of 13.3 billion UAH, will provide an additional 10 billion UAH per year. Taxes on personal income (18% of tax revenue) do not change, so the amount paid to employees is not affected. However, employers must pay for high-value employees and budget chief executives. Experts say that if the law is passed, only the state structure and branches of foreign companies will pay more than the Ukrainian business.



The unified social tax is now 22% of unpaid earnings and will not exceed the minimum wage (MH) 15, which is $ 3,723 from 1 January 2018. That is, today the maximum CU is UAH 12,286 (the import of more than 56,000 UAH). The Cabinet recommends introducing a variable degenerative measure. The higher the salary, the lower the ratio of ERU, but it must be borne by the entire salary and imposed there. Thus, salaries of up to 25 MH (93,075 UAH), employers must claim 22% of ERU, as before, but already paid 56,000 UAH for the full amount of income, as well as 25-70 MH pay 610 20%, 70 150 MH (558 450 UAH) – 17%, 150 to 200 MH (744 600 UAH) – 15%, 200 to 270 MH (1 005 210 UAH) – 10% 270 MH-5% or more.

Expert opinion

According to financial analysts, adoption of the law will affect the structure of paying a lot of money in a white way. These are mainly foreign companies and state-owned enterprises.

"Because there are few workers receiving high wages, the burden on the wage fund is not large, and the state budget is given extra money," said Ukranalitsentr President Alexander Okhrimenko.

Andrei Zablovsky, Secretary General of the Entrepreneurial Council of the Cabinet of Ministers, mentioned that this bill would not affect them because there are very few people officially receiving a salary of almost 50 to 60,000 UAH in the Ukrainian business structure.

"First of all, we need strict measures by the tax authorities to draw high wages from the shadows."

Recall from The government has figured out how to fill the national budget next year. In addition to smokers who order goods from abroad, Ukrainian. The Ministerial Council will levy taxes on foreign parcels more than a certain amount from 2019 Increase tobacco excise tax by 9%.

And "today" FromUkrainians can return taxes on their budgets.. The provincial government takes each salary of the 18% income tax officially worked. A financial service that can be reversed.

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