TOTAL FALL OF SOCIAL FEES

Apr, 28 2017

Government plans to decrease total sum of social fees from 30 % to 21 % and increase value-added tax (VAT) from 18 % to 21 %.

It is expected that use of the rate system 21/21 will decrease pressure for business and will reduce number of illegally hired employees to avoid payment of social fees. Besides, such measures will encourage export companies, as the rates of VAT for export will remain 0 %.

For the moment, other opportunities for rates change are being considered: 20/20, 22/22, 21/22. This initiative is in the planning stage.