VAT and profit tax rates will not increase until 2028
Economy
The Presidential Decree “On further measures to ensure equal conditions for entrepreneurs and a fair competitive environment” has been adopted.
According to the decree:
➖ Value-added tax (VAT) and profit tax rates will not increase until January 1, 2028;
➖ From January 1, 2025, to January 1, 2028, profit tax and personal income tax rates for employees of business entities engaged in manufacturing in the textile, footwear, and leather industries, and simultaneously meeting all the following conditions, are set at 1%:
— at least 15% of the total workforce consists of members of families included in the Unified Social Protection Register or the Register of Low-Income Families;
— monthly wages for each employee are calculated at no less than twice the minimum wage;
— during the tax period, the total revenue from the sale of textile, footwear, or leather goods constitutes at least 90% of the total revenue from the sale of goods (services).
➖ Starting from April 1, 2025, legal entities engaged in the sale of pharmaceutical products or the provision of medical services are recognized as VAT payers, regardless of their income size.
➖ Value-added tax (VAT) and profit tax rates will not increase until January 1, 2028;
➖ From January 1, 2025, to January 1, 2028, profit tax and personal income tax rates for employees of business entities engaged in manufacturing in the textile, footwear, and leather industries, and simultaneously meeting all the following conditions, are set at 1%:
— at least 15% of the total workforce consists of members of families included in the Unified Social Protection Register or the Register of Low-Income Families;
— monthly wages for each employee are calculated at no less than twice the minimum wage;
— during the tax period, the total revenue from the sale of textile, footwear, or leather goods constitutes at least 90% of the total revenue from the sale of goods (services).
➖ Starting from April 1, 2025, legal entities engaged in the sale of pharmaceutical products or the provision of medical services are recognized as VAT payers, regardless of their income size.
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