Entrepreneurs in Ukraine may be penalized
Wednesday, September 22nd, 2010It is already one of the most difficult and challenging places to do business in. The flat tax was a way of making it a bit easier to do some types of business, though it looks like the government wants more money and is not interested in business creation or growth. These types of policies always fail.
Government wants to restrict private entrepreneur tax privileges
In the new draft tax code, the government has excluded a wide range of professions from the simplified tax system that allows entrepreneurs to pay a small, relatively flat income tax. This could mean higher taxes for them and their employers, if parliament adopts the legal change. Those include people employed in these professions:
1. entertainment business;
2. trade of excise goods (except for beer);
3. production and retail sales of fuels and lubricants;
4. lifting and processing of precious metals;
5. lifting and selling of mineral deposits;
6. financial activity;
7. real estate activities;
8. wholesale and intermediary wholesale services;
9. rendering television and radio broadcast services;
10. activities in the field of transport and extra transport services;
11. foreign economic activities, except for exports of software services for remote support programs, etc.;
12. activities to provide e-mail service and communications;
13. activities in the field of security and investigations;
14. activities in the field of law;
15. activities in the field of accounting and auditing;
16. activities in the field of engineering, geology and geodesy;
17. advising on the commercial real estate and management;
18. business management;
19. advertising;
20. activities in the field of technical tests and studies;
21. selection and provision of personnel;
22. resale of collectibles and art;
23. retail products from precious metals;
24. retail trade “second hand”;
25. retail trade through the Internet and vending machines
(from the Kyiv Post)
