Ukraine may introduce a new tax model — "10-10-10". What does it imply

The president's Office is working on a new tax model. One of the developments that is being discussed today is called "10-10-10". This was stated in an interview with Forbes by Deputy Head of the presidential office Rostislav Shurma.

The main thing

"10-10-10" is a model in which 10% is income tax, 10% is personal income tax, and 10% is VAT. It also provides for the abolition of the ERU and the military fee of 3%.At the same time, we are talking about the almost complete abolition of all benefits, strengthening responsibility for violations of tax legislation and such things as, for example, tax access to information about bank accounts to prevent tax evasion.A decision on the new tax model has not yet been made.

Details

"We want to create a model that will allow Ukraine to be competitive from a tax point of view, including for global business. Unfortunately, we have not yet reached a consensus on this issue, but I hope that in the coming months, six months, we will be able to adopt a new tax model," Shurma said.

The rapid implementation of the tax model is still hindered by uncertainty with budget revenues in the coming year, Shurma believes. He stressed that now the budget is unbalanced, and Ukraine covers 30% of its needs from its own revenues.

According to the official, the initiative is not unique, in particular, in the United States, responsibility for violating tax laws is almost the largest among all possible offenses.

Last December, Finance Minister Serhiy Marchenko criticized the radical tax reform. He stressed that he is against " radical tax reforms: from reducing VAT rates to introducing a tax on withdrawn capital. This leads to fiscal risks." According to him, Ukraine should change its administration and bring business out of the shadows.

Marchenko also rejected the idea of reducing the tax burden in wartime. At the same time, he said that he does not support raising taxes, "because businesses have suffered very much and may not be able to withstand the additional burden."