President Petro Poroshenko intends to take part in the discussion of the initiatives on the activities of self-employed individuals that pay a single tax in order to prevent crack-down on the entrepreneurs, in particular those of the IT sector working under this tax system. The Head of State told this during a speech at the Lviv Regional Development Council during the working visit to Lviv region.
"I would like to say that the proposal of the Ministry of Social Policy to amend the Labor Code, which could limit the activities of self-employed individuals under single tax in general and in the IT industry in particular, is a working initiative of the Ministry itself. The Government did not make this decision. The President did not see it," he said.
According to the Head of State, the Ministry as the body responsible for the replenishment of the Pension Fund should look for a way to legalize employment. "But in the near future we will carefully discuss the model that they have now proposed. It has not yet been considered by the Cabinet of Ministers. And I am planning to take an active part in this discussion for the IT sector as our priority to feel secure. This is my presidential promise," Petro Poroshenko said.
The Head of State emphasized: "This does not mean we shouldn’t deal with it. We just have to find other ways to deshadow wages, to legalize employment, to fill the Pension Fund".
"We have made a significant progress in implementing this initiative, without cracking down on the small and medium business. We will adhere to such a line in the future," he also stressed.
Petro Poroshenko noted that one of his main ideas about changes in the tax area was the introduction of the tax on the withdrawn capital. "What does it mean? What you have invested in Ukraine goes without taxes. What you withdraw, no matter how you call it - royalty or dividends - is subject to taxation," he explained.
The President is convinced that this will be a start and a powerful incentive for investment, development, job creation. "I firmly believe that this will be a real breakthrough," the Head of State emphasized.