The Law of Ukraine “On Amendments to the Tax Code of Ukraine on the improvement of the investment climate in Ukraine” of 21.12.2016, № 1797-VIII (hereinafter − Law № 1797) and other legislative acts made some amendments concerning the payers who were on the simplified system taxation. Small business representatives should focus on the following main issues.
The unified tax rates
The size of the unified tax rates for the payers of the first − third groups was not changed. However, the payers of the first group should calculate it on the basis of the updated database. This is provided for by the Law of Ukraine “On Amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine concerning the provision of balance of budget revenues in 2017” of 20.12.2016, № 1791-VIII (hereinafter − Law № 1791), which corrected a bit paragraphs 293.1 and 293.2 of the Tax Code of Ukraine (hereinafter − TCU).
Thus, the following unified tax rates should be applied from 01.01.2017 (para. 293.1 of TCU):
- for payers of the first group − in percentage points (fixed rates) of size of living wage for able-bodied persons established by the law as of January 1 of the reporting year. Previously, the tax was calculated on the basis of the minimum wage;
- for payers of the second group − in percentage points (fixed rates) of size of the minimum wage established by law as of January 1 of the reporting year;
- for payers of the third group − in percentage points of income (for VAT payers − the rate is 3% as in 2016, for non-payers of VAT − 5% of taxable income).
It should be recalled that as of 01.01.2017 the minimum wage amounts to UAH 3 200, while the living wage is equal to UAH 1 600.
Therefore, the maximum unified tax rate – 2017 amounts to: for payers of the first group − UAH 160, for the second − UAH 640 per month.
The procedure for payment of the unified tax remained unchanged. However, the Law № 1791 increased the unified tax rate (as a percentage of the tax base) for the fourth group (updated para. 293.9 of TCU). Thus, from 01.01.2017:
- the size of tax rates per hectare is 0.95 for arable lands, hayfields and pastures (except arable lands, hayfields and pastures located in mountain areas and Polissya territories, as well as agricultural lands, located in protected ground) (sub-para. 293.9.1 of TCU);
- 0.57 for arable lands, hayfields and pastures located in mountain areas and Polissya territories (sub-para. 293.9.2 of TCU);
- 0.57 for perennial plants (except for perennial plants, located in the mountainous areas and Polissya territories) (sub-para. 293.9.3 of TCU);
- 0.19 for perennial plants located in the mountainous areas and of Polissya territories (sub-para. 293.9.4 of TCU);
- 2.43 for the water fund land (the rate remained at the level of 2016) (sub-para. 293.9.5 of TCU);
- 6.33 for agricultural lands located in protected ground (sub-para. 293.9.6 of TCU).
The Law № 1791 of para.293.9 of TCU also excluded the norm on the specialization in production (cultivation) and processing of plant products in protected ground.
In addition, the Law № 1791 supplemented sub-sec.8 of sec. XX of TCU by new paragraph 5. Thanks to it, the consumer price index of 2015 for determining the value of the coefficient of indexation of regulatory monetary value of agricultural lands (arable lands, hayfields, pastures and perennial crops) and/or water fund lands (inland waters, lakes, ponds, reservoirs) for purposes of taxation of the unified tax of the fourth group should be applied with a value of 100%.
As before, in 2017 individual – unified tax payers should pay the unified social contribution (hereinafter – USC) for themselves. They independently determine its size, but not less than the minimum insurance payment, regardless of the income received or not. At the same time, the unified tax payers of the first group should pay USC for themselves at the level of 0.5 of minimum insurance payment established for other entrepreneurs.
The USC size amounts to:
- for payers of the first group − not less than UAH 352 (UAH 3 200 × 22% × 0,5);
- for payers of the second and third groups − not less than UAH 704.
At the same time, in 2017 there is an effective norm on exemption from USC payment for oneself of the individual – unified tax payers, who are pensioners due to age or disability.
