All taxes shall be automatically charged and paid in real-time, mostly online.
Oleksandr Savchenko, rector of the International Institute of business, coordinator of the economic program of the party “Civic stand”, in his article in ZN.UA writes that the ideal (inherent to modern state of Ukrainian society and business) tax system of Ukraine should be based on the following taxes:
“1. The tax to incomes of physical persons: less than 5 minimum wages — 10%; 15% on income above 5 minimum salaries. Be sure to deduct all working on their own retirement savings plan 5% of salary. Social security contributions are revoked, the Pension Fund is liquidated. Solidarity pensions and other social benefits financed from the state budget.
2. Tax on payment of dividends (the capital) — 15%.
3. The tax on the sale of land, housing and other real estate, vehicles — 2%.
4. The tax on the sale of securities and any property rights outside the stock exchange — 1%.
5. The turnover tax of enterprises — 5%, paid at import and domestic sales, while export turnover tax of 2.5% (if the EU will block the transition to VAT, I propose to reduce VAT to 15% and to charge a fee for service 15% state with the return of VAT to companies).
6. Tax on transactions with offshore territories is 15% on all money transfers in these areas, except for the payment of dividends and return of investments or loans.
7. The company belonging to the small business (gross income for the year is less than 5 million euros), has the right to conduct simplified accounting.
8. The businessmen working on simplified system of taxation pay the tax to incomes of physical persons at the level of 15% of the minimum wage and 5% of contributions to a private retirement account. They also pay 5% tax on turnover (sales) provided that it is less than 1 million euros a year. If the turnover exceeds 1 million euros a year, the entrepreneur needs to register a company. All businesses operate with cash registers or their modern counterparts, issued free by the tax administration.
9. Self-employed citizens of Ukraine, revenues from sales of products or services does not exceed 1 thousand euros a month, not taxed, they also, upon request, have the right not to pay the tax to incomes of physical persons in the amount of 15% of the minimum wage, in which case pensionable service will not be credited to them.
10. Excise taxes and rental payments should be set at minimum in the EU”.
According to the expert, all operations taxation (including payroll) are carried out with the help of gadgets and programs, provided free by the tax administration. Other taxes and fees, in particular on real estate, land and deposits should be abolished, and the above — it is impossible to increase the minimum period of 10 years. Of course, these taxes can be reduced, some eliminated. Such better tax system in the Constitution.
The author adds that the proposed tax system is very simple and technological, it doesn’t provide tax returns and reports, inspections, and even contacts with the tax administration. All taxes shall be automatically charged and paid in real-time, mostly online. Therefore, the number of accountants, lawyers and especially the tax collectors will be substantially reduced, the latest more than 10 times.
“This is long awaited by the Ukrainian government in the smartphone!” — emphasizes the expert.