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Having Become History. Why the Government Will Pay With Its Reputation For a New Tax For ‘Sleeping’ Self-Employed Individuals

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By introducing a compulsory tax for ‘sleeping’ self-employed individuals (SEI), one tries to patch a hole in the Pension Fund. CASE Ukraine`s CEO Dmytro Boyarchuk stressed the incorrectness of that decision in a comment to the ‘Private Entrepreneur’ media outlet.

– I think this is the wrong decision. It is clear, that it was made to increase revenues of the Pension Fund. But it does not make sense. If a person was keeping his/her ‘sleeping SEI’ status to get occasional earnings or to be secured for any changes in his life, now s/he simply will close it. There will be people who will experience taxes and fines, but these are most of those who did not pay, and will not pay.

Moreover, I would expect the emergence of a new trend, when a few people will do their activities via one registered SEI, so as not to burden themselves with unnecessary registration and unified social taxes. It is impossible to say, that the innovation will somehow significantly complicate the life of small and medium-sized businesses. But one also cannot expect any benefits for the budget.

Read the full article [in russian].

January 10, 2017