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Power actually created two systems of taxation of labor

Власти фактически создали две системы налогообложения труда

Entering a law on the tax on self-employed 4% government actually created two systems of taxation of labour: a normal tax of 43% (22% PFR + 5.1% HIF + 2,9% FSS + 13% personal income tax) and a tax of 4%. This leads to the fact that the company will make contracts with their employees as self-employed, instead of registration with payment of all social taxes.

In this situation, the authorities will have two choices: either create a costly and complex apparatus for control of wage employment, or to raise the tax on self-employed to a level of 43%.

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