Entrepreneurs will need to invest additional funds a second time to reprogram their accounting systems due to the transition from quarterly to monthly reporting for employees, aimed at updating economic reservations, reports Natalia Artemchuk, manager at the tax and customs committees of the European Business Association (EBA).
As Artemchuk noted in a comment to Interfax-Ukraine, several years ago, a quarterly reporting form was introduced to simplify accounting for all businesses. At that time, companies had to invest significant resources to modify their automated personal tax accounting systems. However, the quarterly reporting system did not allow for timely tracking of changes in employment and wage levels.
"Now the Government has decided to revert to monthly reporting. Consequently, businesses must again spend additional funds to reprogram their accounting systems," she explains.
According to her, the government (Ministry of Social Policy and the Pension Fund) has received timely information in the State Register of Insured Persons regarding employee salaries, payment of the unified contribution, and insurance experience for calculating social insurance benefits in cases of temporary incapacity, unemployment, workplace accidents, and pensions (which affects, in particular, the determination of pension rights).
The EBA explained that this has also expedited the influx of funds into the budget concerning the payment of the unified contribution, positively impacting the accumulation of funds for pension payments. Additionally, it affects the timeliness of providing and confirming information about the average salary level of reserved employees who are military conscripts.
As reported, on February 3, the Ministry of Finance approved a new tax calculation form for personal income tax (PIT) and the unified social contribution (USC) and updated the procedure for its completion and submission. These changes were stipulated by the previously adopted law 4015-IX (bill No. 11416-d), which introduces an increase in the military tax from 1.5% to 5% starting October 1, 2024, a rise in the corporate income tax for banks to 50% for 2024, and an increase in several other taxes and fees. This law, in particular, changes the tax period for submitting tax calculations for PIT and USC from quarterly to monthly.
Thus, starting in 2025, tax calculations will be submitted monthly within 20 calendar days after the end of the reporting month. Therefore, until February 10, 2025, reports for the fourth quarter of 2024 will be submitted using the old form, while reports for January of this year will be submitted using the new form until February 20, 2025. These changes apply to all tax agents, particularly legal entities and individual entrepreneurs (IEs) paying income to individuals.