Raising the minimum wage twice will force PE to pay higher taxes

Raising the minimum wage twice will force PE to pay higher taxes


Minimum wage will increase to 3.2 thousand.

From 1 January 2017 in Ukraine twice will increase the minimum wage – from 1.6 to 3.2 thousand UAH thousand UAH. Will rise accordingly and social standards, fines and taxes that are tied to the minimum wage.

In particular, most natural persons-entrepreneurs will have to pay twice the single social contribution (ERU) to the Pension Fund. Now if he is 352 UAH per month, will be 704 UAH (22% of the minimum wage). Many will pay next year only the tax payers of the 1st group (0.5 of the minimum size of the insurance premium). This writes ЛІГА.net.

The FLP, with the exception of those that are on a single tax, the 1st group, 2017 will be required to pay ERUs including the months in which they received income. Even if the natural person-entrepreneur is on the common system of taxation and does not conduct business (the so-called “nulevka”). Therefore, experts advise to formally close “dead” Phil.

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“In addition, the increase in the minimum wage will also affect entrepreneurs who use hired labor, that is, the 2nd and 3rd groups since they pay for employees payroll taxes tied to wages,” explains attorney Victor frost.

The minimum premium for the employee since January 1 amount to 704 UAH. And the minimum overall tax burden per employee with labor card will be 1184 UAH per month.

PE 3rd group of single tax payers the increase in the minimum wage will not be affected, because the amount of tax which they pay, depends on earned income (5% of revenue).

The single tax payers of the 1st group is 10% of the minimum wage (that is, will increase to UAH 320), 2nd group – 20% (will rise to 640 UAH).

Also grow up and some of the penalties for violation of labor legislation. For example, December 1 is already in force a fine of 30 minimum wages (currently it is 48 thousand UAH, and will be from January 1 to 96 thousand UAH) for each employee for the admission of the employee to work without issuing an employment contract or registration of the employee on part-time work in the event of actual execution of work for full time.

At the same time for business can introduce tax breaks. It is provided with bill No. 5368, which was prepared by the Ministry of Finance. If the Verkhovna Rada approves it, the entrepreneurs will get the opportunity vacation at tax on net profit for a period of five years. The main condition – the turnover must not exceed 3 million UAH per year.

Also actively discussing the question of the abolition of privileges for private entrepreneurs who are engaged in agricultural business.

Meanwhile, the national Bank predicted the impact of the increase in two times the minimum wage on GDP.