Choosing a taxation system
Business always involves the tax payment. There are four main groups of simplified taxation sustem for private entrepreneurs and limited liability companis and general taxation system. They are distinguished on the basis of the amount of annual income, the presence or absence of employed workers and the tax rate on trade.
According to the current legislation, there are four groups of taxation for private entrepreneurs and limited liability companies.
1. For individuals whose annual income is 300,000 UAH, and who have no right to hire workers, the rate is up to 10% of the subsistence minimum. The main field of activity is providing household services to the population.
2. For individuals whose annual turnover is up to 1.5 million, and who may hire 10 employees, the rate is up to 20%.
3. For individuals whose annual income is up to 5 million, and who have no limitations to hire as many workers as needed. The rate is from 3% to 5%.
4. Agricultural entrepreneurs whose work is supervised by tax authorities.
General taxation system’s tax rate is 18 % from profit.
There are several tax systems in the country in which business can be conducted. A competent lawyer can help choose the best option and properly prepare the document