Employers in Ukraine have the opportunity to significantly reduce costs associated with the payment of the unified social contribution (USC) if they officially employ persons with disabilities. Such benefits are provided in accordance with current legislation and apply to both legal entities and individuals engaged in business or independent professional activities.
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Preferential USC Rates for Employers
Typically, the USC rate is 22% of income, but employers can pay less under certain conditions. The minimum insurance contribution currently amounts to 1760 UAH, based on a minimum salary of 8,000 UAH. However, in specific cases, preferential rates are provided:
- 8.41% – on the condition of officially employing persons with disabilities;
- 5.5% – if at least half of the employees of the enterprise have disabilities, and their wage fund constitutes at least 25% of the total fund;
- 5.3% – for enterprises and organizations of UTOG and UTOS, provided that the previous requirements are met.
Features for Individual Entrepreneurs
Individual entrepreneurs, those engaged in independent professional activities, as well as members of farming households, may be exempt from paying USC for themselves. To qualify, they must meet two criteria:
- have the status of a person with a disability;
- receive a pension or social assistance.
Grounds for Business Inspections Even During the Moratorium
Despite the existing moratorium on unfounded inspections in Ukraine, the tax service can initiate a business inspection if there are defined grounds. For individual entrepreneurs of groups 3-4, there must be at least two grounds, and for groups 1-2, at least three. Among the reasons that may serve as grounds for a tax inspection are:
- tax evasion or minimization of tax payments;
- payment of salaries “in envelopes”;
- absence of a cash register;
- failure to return foreign currency earnings;
- other violations of tax legislation.
“Employers can pay contributions at preferential rates under several conditions: employment of persons with disabilities – 8.41%; the number of employees with disabilities is at least half of the total staff, and their wage fund is at least a quarter of labor costs – 5.5%; enterprises and organizations of UTOG and UTOS that meet the conditions of the previous point – 5.3%.”