---
title: "Making life simpler for entrepreneurs in Ukraine, starting today! #kat_ua"
author: "Stan Voo"
url: https://www.99rabbits.com/blog/making-life-simpler-for-ukrainian-entrepreneurs
published: 2011-02-24
summary: "Ukraine promised small businesses one simple social contribution. An entrepreneur I know counted three payments, new forms and surprise inspections."
---

# Making life simpler for entrepreneurs in Ukraine, starting today! #kat\_ua

*I'm quoting a note by an acquaintance of mine who wished to remain anonymous. Just in case.*

> Instead of contributions to the social funds, they came up with a promising **Single Social Contribution**. You believed it's single? How naive! The single contribution is, once again, three payments: one for yourself (as an entrepreneur on the single tax) and two for each employee. What's more, you have to pay it for an employee together with the salary, and under the Labor Code we're obliged to pay salaries at least twice a month.
>
> The report to the workplace accident fund is only once a year, but it's still there.
>
> Meanwhile our valiant lawmakers have invented a **new report**, the personal income tax return, **changed Form 1DF**, the quarterly report on income paid to individuals, **and changed the application form** for the personal income tax allowance.
>
> **With every innovation, an entrepreneur's life just keeps getting better and better!**
>
> They managed to put this phrase into the law on the Single Social Contribution: "...*the types of activity listed in the entrepreneur's certificate of state registration*". But anyone who has seen that certificate even once knows it lists no types of activity! Think about it: is an entrepreneur supposed to re-register with the district administration every time they change what they do?
>
> On top of that, you have to pay the contribution on civil-law contracts. Another entrepreneur provided you a service that isn't among the activities in his state registration? Pay a tax to the Pension Fund!!! (Well, the Single Social Contribution, that is.) Where's the logic?
>
> **The tax office can inspect without warning** on the strength of information from state bodies or local government. **Phone a friend**, and they have grounds to inspect you without warning.
>
> An entrepreneur collected milk from people around the villages and delivered it to a company's plant for processing... From April 1 (funny, right?), take your milk and get lost. Or keep full books like everyone else...
>
> These are just some of the joys.
>
> If I had the time, I'd write it all up in detail and with quotes, but I don't: I have to run and file reports, fill in my income ledger and pay taxes.
>
> **I'm an entrepreneur on the simplified system, after all!**

I can't say I agree with him 100%, but freedom of speech has to be supported...