We have been talking about tax reform for a long time. Everyone understands the urgent need for the country’s survival of these measures. Everyone understands that smooth and painlessly so large-scale, even evolutionary, changes cannot pass. But, at the same time, as they like to say in our country: It is still there.
Reform is not only not in a hurry to introduce – there are often frank cases of sabotage of accompanying measures, inhibition of consideration and decision-making. Who benefits? Well, certainly not the people! But to the question: What to do with all this? – the answer is not so easy to find …
Globally, economists believe that our entire reform can be put in three theses:
- replacement of the existing 22 taxes of the 9th, while retaining the total load so important for the country now;
- processing of ERUs with a decrease to 22%;
- facilitate the administration of VAT refunds by introducing a public registry.
Well, let’s try to predict what we can see from this list as early as next, in 2019 …
So, what was talked about so long and long ago – one of the most important changes – it looks like it will still be introduced, right by January 1st. We will say goodbye forever with the income tax – one of the most corrupt, non-transparent and difficult to administer.
And we will start to get used to the tax on the withdrawn capital, having risen, thus, to the progressive way recognized as one of the healthiest in terms of climate for business, countries: Estonia, Latvia and Georgia.
NNVK, in essence, means that the accrual and payment of 15% of the net income to the budget will be made only in the event of the event of the withdrawal of money from the business, the distribution of profits. Roughly speaking, this is a payment by the owners of the company from its funds for the possibility of individually putting a piece of profit in their pocket.
As long as the profit is on the accounts of the company, it can, firstly, be easily turned into business development, into circulation, and, secondly, in this form, it is absolutely not taxable.
The idea is brilliant in its simplicity and transparency. The result will be a significant reduction in tax pressure on business, the removal of substantial capital from the shadow, as now there will be absolutely no need to organize some ingenious schemes to survive with the old taxation, as well as the opening of the widest opportunities for enterprises in terms of their development.
In fact, NnVK will become a prominent representative of the sphere of automatically accrued and payable taxes, so that the layer of the tax inspector in the form of an arbitrator who administers a formidable (and not always competent, and often just greedy) arm of the companies will become irrelevant. All this, of course, looks great – this tax, indeed, could save our business.
But, at the same time, experts fear that the experts from the IMF directly hint at us that the under-received amounts of the old income tax can simply kill the economy in one fell swoop if they don’t come up with any alternative as soon as possible. After all, we are talking about tens of billions of hryvnia.
The second nightmare for our entrepreneurs, value added tax, is, in its essence, a smart tool for activating monetary exchange between enterprises and the state, useful for both parties, and over the years we have adopted absolutely ugly features that are ugly.
Those who doubt that the problems in administering VAT are no less than with income tax can be advised to just try to file a refund once to the tax authorities.
What follows will, as a rule, resemble an action-packed detective in half with such a good driving blockbuster: with his own blackjack, a truly samurai patience waiting for refund and … inspectors with checks. But, from 2019, they seem to be going to reduce it to 16% and radically reconsider the compensation system, as such.
The VAT rate is reduced – it would seem, should be happy? But it was not there. Our deputies, it seems, were too diligently listening to a chemistry teacher at school when he told them about the Mass Conservation Law: if somewhere one tax is reduced, it means that another will come. And so that everyone flinches …
In one package with VAT, these lovely people are going to push through one innovation: the third group of single partners is simply deleted from the law, and the first and second will be forbidden to engage in warranty repairs, the production of sophisticated equipment and jewelry, wholesale trade and have links with excisable goods.
How many FLPs, thanks to this, in one fell swoop, wake up on a common basis — it’s hard to even imagine. And how many will close, unable to withstand the tax yoke? In a word, with one hand they will stroke a big business on the head, and with the other they will take the same head from the shoulders to the small business. Great, right? Well, we mentioned, it seems, about the Law of Conservation of Mass – everything cannot be well …
Every year the size of the salary changes, therefore, all taxes attached to it for ordinary citizens are pulled after it. This is, of course, first of all, about the real estate tax, which the people have long been known to christen as a luxury tax.
Of course, it is not easy to understand how 60 meters with a small area can be a luxury, but let us leave all the nuances and the controversial moral of this tax for a separate detailed discussion.
In the dry balance, if Minimal is raised, as promised, to UAH 4,173.00, a real estate tax (depending on the approved benefits and interest rate by local authorities) will fluctuate within 62.60 UAH. for each meter in excess of the norm.
The transport tax, on the contrary, thanks to the same increased minimum wage, will be paid by a smaller number of vehicle owners – it implies luxury cars with a mileage of less than five years and worth more than 1.565 million UAH.
As for the long-awaited merger of ERUs and personal income tax under the new Liberal Tax Code, the final decision has not yet been made, but in view of the upcoming presidential election campaign, everything seems to be very real.
Although it is, of course, too early to talk about the specific rate of the future solidarity collection. It is expected that it will decline with each passing year in a progression: that is, in 2019 about 32% are waiting for us, in 2020 – 28%, and in 2021 – 20.
Ukrainians are accustomed to communicating very closely with the world through the exchange of goods on a personal level: purchases at world sites such as Amazon and others, ordering goods from import stores — have become a routine routine for many people. And how much does the average our citizen from traditional shopping with European sales drag …
So, from January 1, 2019, you will have to temper your appetites. The new parcel tax determines the following rules: only three parcels per month for a total amount of 150 euros will be free of charge and baggage charges of up to 500 euros at the usual customs and up to 1000 at airports.
For each subsequent, starting with the fourth, the parcel will have to pay 20% (if reduced – then 16) VAT, 10% duty and excise, if the product falls into a special category.
As regards the import of baggage, the rule for the indicated amounts is supplemented with a restriction of 50 kg of weight, and all this is relevant only if a person enters the homeland no more than once every 72 hours. If the transport is carried out with greater intensity – the goods can be taken for a maximum of 50 euros.
As we see, they expect a lot from the next year, but for now … For now, remembering the unforgettable Leonid Makarovich: Maєmo, they are so small …. Electronic services of interaction with the tax authorities are in their infancy (only in the capital there are at least some progress towards the better). Automation of all processes – at the same level.
In the segment of such a major tax as VAT, everything looks extremely depressing at all: tax invoices, both blocked and continue to be blocked, and its administration, according to the general opinion, has long and firmly occupied the first line of corruption rating.
With the rest, the situation is no better – especially if we recall the permanently sad situation in the so-called salary taxes … And the problem with us, unfortunately, is also that, for obvious reasons, only the whole world can push the tax reform in the country, because if we give everything to politicians and officials again, we will not just have the burden on the very spot – very soon even the wheels will be removed and the shafts removed…