The preferential taxation system, under which businesses were allowed to pay only 2% of income instead of the pre-war 5%, is likely to be canceled from July 1, 2023. This was announced by the head of the tax committee of the Verkhovna Rada Daniil Getmantsev.

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He noted that the decision of the government in the spring of 2022 allowed to revive enterprises that were in a daze from the shock of the war..

Getmantsev added that since then 313,062 entrepreneurs have switched to 2%. The single tax receipt from legal entities – payers of the third group for 2022 is estimated at the level of just over UAH 6 million of the single tax.

" The tax was the factor that, among others, revived enterprises,"

The bill of the Ministry of Finance can be found at the link.

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Earlier, the Ministry of Finance stated that the abolition of the preferential system for business would ensure that Ukraine fulfills its obligations under the Memorandum on Economic and Financial Policy with the IMF to increase tax revenues in 2023.

The document says that tax benefits should be valid until the end or cancellation of the martial law, state of emergency on the territory of Ukraine, but no later than July 1, 2023. This applies to the following benefits:.

opportunities for individual entrepreneurs and legal entities to be payers of a single tax of the III group using a rate of 2% of the amount of income;

opportunities for sole proprietors of groups I and II not to pay a single tax;

moratorium on documentary checks;

no penalties for non-use of cash registers (recorders of settlement transactions);

no penalties for violation of tax laws.