OREANDA-NEWS. November 28, 2011. There was an extended press conference chaired by First Deputy Minister of Finance of Ukraine Anatoliy Myarkovskiy on "The Law of Ukraine "On Amendments to the Tax Code of Ukraine and other legislative acts of Ukraine on the simplified system of taxation, inventory and accounting of objects of small business" in Club of the Cabinet of Ministers of Ukraine.

On the basis of compromise between society and government it has been developed a number of measures which make significant changes to key provisions of the simplified tax system.

It should be noted that "tax rules" for the reductionists have not been changed for 12 years and no longer meet the realities of today. Therefore, in order to stimulate business activity in Ukraine it has been made the following changes:

- increased the maximum amount of income at which can be used the simplified tax system (for individuals - from 500 thousand UAH to 3 million UAH; for legal entities - from 1 million UAH to 5 million UAH);

- set the interest rate of unified tax: 3% of income for individuals with income up to 3 million UAH under the stipulation that VAT is paid, 5% of income - without VAT (in the current legislation there is no such provision);

- restriction is cancelled to carry on expenses of the payer of the profit tax expenses on purchase of the goods (works, services) at physical bodies - payers of the uniform tax;

- it is provided to physical bodies - to payers of the unified tax the right to be registered as payers of VAT;

- it is cancelled the 50 percent extra charge which is applied to the fixed rates of the unified tax for each hired worker.

Besides it was developed the mechanism of simplifying of administrative procedures:

- to cancel annual registration of the certificate of the payer of the unified tax;

- to cancel advance payments for payers of the unified tax who paid the tax under interest rates. The tax will be paid according to the declaration (according to the current legislation - by monthly advance payments);

- to establish the annual accounting period for physical bodies with insignificant volume of the income (up to 150 thousand UAH);

- to provide the right to physical bodies who do not use work of hired persons, not pay the unified tax for the period of vacation within calendar month, as well as the illness confirmed by the sick-list if it lasts a calendar month and more;

- to establish for physical bodies - payers of the unified tax (except for that who are payers of VAT) a duty on conducting the book of the account of incomes (without taking into account expenses).

Considering, that the existing system of the taxation of small business began to be used actively for minimization of tax obligations owing to what interests of hired workers and participants of tax process are broken, to the legislation are made following variations:

- concept payers of the profit tax of the list of incomes and expenses in a cut of counterparts - payers of the unified tax;

- an establishment of the requirement for the physical bodies who are paying the tax under the fixed rates, about granting services just only to the population and payers of the unified tax;

- an establishment of the raised rates of the unified tax for infringement of conditions of application of the simplified system of the taxation;

- cancellation of the certificate of a payer of the unified tax at an establishment of infringements.
 
Recall, on November 18, 2011 the Law of Ukraine On Amendments to the Tax Code of Ukraine and other legislative acts of Ukraine on the simplified system of taxation, inventory and accounting" by which are made essential variations to the simplified system of the taxation has been signed by the President of Ukraine Victor Yanukovych.