The Verkhovna Rada, during its session on Wednesday, supported in the second reading and as a whole the draft law No. 9319 concerning the taxation of rewards for gig contracts of residents of "Diya.City," with an amendment regarding the introduction of new tax regulations (draft law 11416-d) for individual entrepreneurs and legal entities under the single tax starting January 1, 2025, reported member of the "Holos" faction Yaroslav Zheleznyak.
According to him, this decision was backed by 268 MPs, with the required minimum of 226 votes.
“It was precisely in this that there was an amendment correcting the tax draft law 11416-d and the 'retroactive date,' where from October 1, taxes are postponed to January 1, 2025, for individual entrepreneurs. Additionally, the amendment reduced the rent for kaolin and once again canceled fines for the failure to submit reports on controlled foreign companies until the end of the war,” the MP clarified.
According to the explanatory note to the draft law on the parliament's website, the aim of the document is to ensure the proper functioning of the legal regime "Diya.City" and to adapt it to the conditions of martial law in Ukraine.
As explained by the head of the parliamentary finance committee, Daniil Hetmantsev, the revised draft law for the second reading provides, in particular, the cancellation for e-residents with startup status of the provision regarding the non-application of the preferential personal income tax rate of 5% and the minimum single social contribution (SSC) to the income of "Diya.City" specialists, if the number of such individuals at the "Diya.City" resident is less than nine people. At the same time, a safeguard against abuse is stipulated: if the startup fails to meet the criteria before the end of the second year of its residency in "Diya.City," it will need to pay the personal income tax and SSC.
The draft law also provides for the exemption from taxation of the tax on withdrawn capital (TWC) for charitable assistance provided by residents of "Diya.City" in favor of the Armed Forces of Ukraine, as well as the cancellation of acts for services provided to gig specialists.
Moreover, it proposes to strengthen the "anti-criteria" for residency in "Diya.City" during the period of martial law and the post-war period, as well as to eliminate some editorial inaccuracies in the relevant law of Ukraine "On Stimulating the Development of the Digital Economy in Ukraine."
As previously reported by Zheleznyak, the parliamentary finance committee considered amendments to the draft law that proposed eliminating the "retroactive" taxation for individual entrepreneurs, maintaining the rate for e-residents unchanged, including an increased military tax in the expenses for the minimum tax obligation, and taxing the income for 2024 (taxable for the annual period) at the old rate.
“The amendments will clearly outline how the new taxation will come into effect, and it now appears that it will start from December,” the MP explained at the end of November.
According to the text of the amendments posted by Zheleznyak, in particular, individual entrepreneurs – payers of the single tax of the first and second groups, not employing hired labor, are exempt from paying the military tax for one calendar month per year during vacation, as well as for the period of illness confirmed by a certificate from the Electronic Sick Leave Register, if they last for 30 or more calendar days.
As reported, the Verkhovna Rada adopted in full the draft law No. 11416-d on amendments to the Tax Code regarding the peculiarities of taxation during the period of martial law on October 10. The document provides for an increase from October 1 of this year in the military tax from 1.5% to 5%, the profit tax for banks up to 50% for 2024, and an increase in several other taxes and levies. President Zelensky signed it on November 28.
"After 44 days, the president signed the historic tax increase No. 11416-d. The law will come into effect after publication. This means it will be published on November 30, and will take effect on December 1. Whether we will fix the conflicts or not will only be known at the next plenary week," Zheleznyak commented.