MPs want to cancel large fines for violations in payment of single social contribution

The bill that significantly reduces administrative and fiscal pressure on personal income has been registered at the Parliament.

This information was announced by the initiator and co-author of the bill MP Oksana Prodan, the "Ukrinform" reported.

"So far, the reform of the single social contribution has not gone any further than declarations. There are no real changes that are so essential to small and medium enterprises…Instead, on January 1, 2015, draconian penalties applying to 100% of enterprises came into force. This is the wrong path that will give a negative economic effect," – Prodan said.

In particular, she said the bill number 1877 proposes to abolish the penalty of 36,500 UAH for non-compliance with rules of employment and other significant financial penalties. The reason for the proposed changes is "lack of conditions for the legalization of wages." 

Recall that to have the rate of the Single Contribution reduced, it is necessary to fulfill a number of conditions, including the increase of the average wages in the company by 30%, the increase in the total basis for application of the Single Contribution for the month by 2.5 times, payment of the average wage in the company at 3 times the minimum wage, and others.

On January 1, 2015, tight economic sanctions for violation of the law for the payment of the Single Contribution were introduced.