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Column 16:25 24 Jan 2022

Ban on registration of employees as sole proprietors: should the business worry?

In recent days, the media and entrepreneurs have been actively discussing the idea of legislators to limit the ability of sole proprietors in Group III to cooperate with legal entities. Such changes are seen as part of an overall income tax reform. I suggest mentioning who and why has "shaken" the info space on this topic, whether to worry and how real such "innovations" are.

What happened?

Such changes are seen as part of an overall income tax reform. I suggest mentioning who and why has "shaken" the info space on this topic, whether to worry and how real such "innovations" are.

The other day, in an interview, the chairperson of the Finance, Tax and Customs Policy Committee of the Verkhovna Rada Danylo Hetmantsev stated the goal of tax reform: to limit the opportunity of the group III sole proprietors to cooperate with legal entities. According to him, this will increase budget revenues, social protection of employees and bring out of the "shadow" those who don't want to pay taxes and register their employees as sole proprietors. I would like to emphasize at once that the statement is not supported by official documents or the plan of "introduction of novelties," so there is no information for a full-fledged "analysis." So I propose to consider how the system works now, and hypothetically, what will change if Hetmantsev's words enter the "action" phase.

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