Yesterday at 19:23
Great people of Ukraine!
It is the 20th day of our liberation war. The war for the right to live freely on our land.
The Ukrainian people have never demonstrated such unity they are demonstrating nowadays. Never before have so many millions of people in the history of our independence been united by a common goal.
This goal is the peace that we will have after our victory as well as the liberation of Ukrainian lands from the Russian invader.
And these days, an efficient economy and logistics are becoming one of the vital preconditions for our victory.
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We must shape a solid economic rear that will allow us to provide the army and the country with everything they need: from nutrition and medicines to ammunition and modern weaponry.
Obviously, the economic and tax system that existed in peacetime is unable to correspond to the challenges we are facing nowadays.
Therefore, in close cooperation with the President of Ukraine, with the Verkhovna Rada people’s deputies, we have embarked on a complete reformatting of the economic model of Ukraine.
Business will get maximum freedom, in particular:
• reduction of taxes;
• removal of all regulations;
• facilitated access to finance;
• liberalized labor relations.
In synergy with the MPs, we have drafted a revolutionary bill in the tax domain.
Thus, at the initiative of the Government during the martial law effect, an opportunity to use the single tax option will be significantly expanded for medium and large businesses.
Enterprises with a turnover of up to UAH 10 billion will have a chance to switch to the payment of a single tax. We remove all other restrictions regarding the number of employees and kinds of activities (except for excisable goods and gambling business).
Instead of VAT and income tax, entrepreneurs will pay only 2% of turnover.
The draft law also contains a number of other positive innovations.
- Individual entrepreneurs of the I and II groups will pay a single tax on a voluntary basis. If there is an opportunity and understanding of the need to support Ukraine – just pay it.
- Also, individual entrepreneurs will not pay USC [Unified Social Contribution] for their mobilized employees. The state will do it instead.
- For the period of martial law, individual entrepreneurs will not pay USC if they do not receive income.
- Sanctions for violating the ‘PRT law’ [Payment Transaction Recorders] will not be applied until the end of martial law.
- For the period of starting from February 24, 2022, until the end of the year, taxpayers are exempt from paying for land in areas of active hostilities.
- VAT will not be paid on goods destroyed during the war as well as handed over for the defense needs.
- Excise duty on fuel will also be abolished, while the VAT rate on these items will be reduced from 20% to 7%.
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Within a few hours after the entry into force of these laws, the Cabinet of Ministers will adopt all necessary bylaws to ensure the new tax system operating already this week.
The Government will also adopt a decision today to ban business inspections, except for those related to the safety and health of citizens.
Meanwhile, the requirements for obtaining permits for a significant part of business activities will be abolished.
I would like to appeal to farmers. The Government has already launched additional financial support programs to trigger a spring sowing campaign in Ukraine at the earliest opportunity.
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Ukrainian agricultural producers can already get loans at 0%, while the state guarantees 80% for the amount of such loans to banks.
The Government has planned more than UAH 25 billion for these two directions of assistance. These resources will be sufficient to support all small and medium-sized farmers who are planning to start a sowing campaign this year.
And one more thing. The business support steps we are talking about today are just the initial steps.
We prolong our activities. Hold the line. We will definitely win.
Glory to Ukrainians! Glory to Ukraine!
