Economic exemption of employees from mobilization in Ukraine — a decision has been made

Ukrainian Parliament is actively working on the introduction of economic exemptions from mobilization. Three models are being considered, but the final decision will depend on the position of the political leadership.

This was reported by Yaroslav Zhelezniak, a Member of Parliament and representative of the Financial Committee, via Telegram.

Economic exemption of critical employees

Zhelezniak noted that according to the Ministry of Economy, one of the key criteria for implementing economic exemption from mobilization would be salary.

"Vitalii Kindrativ (Deputy Minister of Economy) said that they are asking to maintain monthly PIT (personal income tax) reporting. He said they will definitely introduce a model of economic exemption. The decision has been made. Several models are being considered (three), waiting for the decision of the political leadership to be made," he wrote.

It is also known that they are proposing a shift from the criticality of the company to the criticality of the worker. Provisionally, for one year, but with monthly salary confirmation.

"I'm not going to comment on whether this is good or bad, but I still don't fully understand why we need monthly (instead of the current quarterly) salary confirmation. And at the moment, committee members don't really support this," the MP said.

Later, he added that after a long discussion about monthly or quarterly PIT, the MPs did not vote ("For" — nine, "Abstained" — 11) to remove the provision.

"So, they kept the transition to monthly reporting for some vague model of economic exemption, which (I’m quoting the Ministry of Economy here) — needs approval from higher political leadership and requires separate changes to the law through Nataliukha’s committee —... I still couldn't find any logic in all of this," Zheleznyak added.

Earlier, the MP reported that the economic exemption in Ukraine is expected to be introduced around October–November. It is expected to bring 40 billion UAH per year to the state budget. Therefore, monthly payroll tax reporting is a requirement of tax law.

What do you need to know

As a reminder, Finance Minister Serhii Marchenko believes that the economic exemption mechanism should have been introduced earlier. However, this issue remains on the agenda due to its complexity and ambiguity.

We also wrote that we have developed the concept of economic exemption, taking into account the capabilities of companies from different regions with different salary levels. We are also preparing a list of requirements for employers and employees. In particular, they must meet the criteria of the tax service, have no debts and an impeccable reputation.