Choosing a tax system
Entrepreneurship always involves paying taxes. There are two systems of taxation: a general and a simplified one. In a common system, the tax rate is 18% and the military levy is 1.5% of income. The simplified tax system provides for four groups that have different taxation requirements. They are distinguished based on the annual income, the presence or absence of employees, the tax rate on trade. The main groups 1. The annual income is 300 000 UAH, there is no right to hire workers, the tax rate is 10% of the subsistence level. The main area of activity is based on providing household services to the population. 2. Annual income reaches 1.5 million UAH, up to 10 employees, rate - up to 20% of the minimum wage. 3. Annual income is up to 5 million UAH, there are no restrictions on the number of employees. The rate is in the range of 3% -5% depending on the status of the VAT payer. 4. Agricultural producers apply to a more sophisticated system of taxation, which is regulated and described on the websites of official sources of fiscal service. Legal Services There are several systems in the country under which entrepreneurship can be conducted. Taxation is regulated at the legislative level following annual income. The competent lawyer will help you to prepare the documents and choose the best option for the calculation properly.