Is Kyiv a new Paris?!

… Perhaps, such an idea arose in the head of the deputy Dubinskyi, which prompted him to propose to the Rada the Bill No. 2758 of January 16, 2020.

The project offers to introduce a progressive scale of personal income tax (according to which the more you earn, the more tax you pay), with a maximum tax rate of 54% (!) For comparison, in France, by which, apparently, not only tax employees are inspired, but the deputy Dubinskyi as well, the upper limit of the corresponding tax rate is 47%. However, the document was rejected by the committees of the Verkhovna Rada.

On the other hand, the story with the introduction of a progressive scale of personal income tax has continued, because the committees of the BP are now considering another bill “On Amendments to the Tax Code of Ukraine (Regarding Exemption from Taxation with Personal Income Tax and Military Duty of Individual Incomes and the Introduction of a Fair Progressive Scale of Income Tax of Individuals)” No. 3076, according to which, if your monthly income is less than UAH 23 615, the tax rate for you will be reduced from 18%, which is in effect now, to 15%.

Thus, the project stipulates the following:

Not to include in the calculation of the taxable base income from interest on a current/deposit bank account, from interest on a deposit in credit unions or discount income from a registered savings (deposit) certificate;

Set a rate of 15% to monthly income, which does not exceed 5 times the size of the minimum wage (now it is UAH 23 615);

Set a rate of 18% for monthly income in the amount of UAH 23 625 to UAH 70 845 (15-fold minimum wage);

Set a rate of 21% to monthly income from UAH 70 845 to UAH 23 6150 (50-fold minimum wage) – applied to the amount of excess of the tax base;

Set a rate of 24% from UAH 236 150 to UAH 944 600 (to the amount of excess over tax bases).

As a result, if your monthly income does not exceed UAH 23 625, such a legislative initiative may be useful for you, because in this case, the tax will be reduced by 3%. If the amount of your income per month exceeds UAH 70 845, an increased tax rate will be applied to the amount of such excess, depending on its sum.