We have already outlined the main provisions of the concept. The minister presented some significant changes that will also affect legal entities and sole proprietors.
For example, the Ministry of Finance proposes to standardize the tax obligations of representatives of different business structures. In this context, the income tax rate for peasant farms (PFs) will nearly double. Currently, it stands at 7%; the government proposes raising it to 12%.
As the head of the Ministry of Finance explained, the goal of this measure is to establish fiscal equality between peasant farms, sole proprietorships, and the basic taxation of salaried labor.
Another change will affect private education. It is proposed to eliminate the income tax exemption for private educational institutions. According to the draft, they will be required to pay the standard 12% rate, even if they have nonprofit status. This measure will also apply to credit unions, labor unions, and patronage associations.
For small businesses, the IVAO regime is expected to be tightened. As a reminder, this refers to taxpayer companies subject to the operating activities tax (4%). For them, it is proposed to lower the threshold for consulting income.
Currently, this share can reach 60%; now, the plan is to reduce it to 25%. Exceeding this limit will automatically reclassify the business into the category of taxpayers subject to the standard 12% income tax rate.
