Business discussed the concept of the economic reservation model

02/ 04/ 2024

On April 1, EBA members met with Dmytro Natalukha, Chairman of the Economic Affairs Parliamentary Committee of the Verkhovna Rada of Ukraine and author of the economic reservation model. The concept of the economic booking model is being developed in parallel with the work on the main draft law on mobilization. The Committees task is to investigate the financial and economic impact of mobilization and to create a possibility of economic reservation of employees in addition to the mechanisms proposed by Government Decrees No. 76 and No. 45. Currently, about 540,000 people have been mobilized, most of them in the energy, agriculture, industry, manufacturing, and transportation sectors. At the same time, it is the white business that bears the greatest mobilization burden, employing people officially. Currently, about 2.7 million men aged 25-60 are officially employed, and 600,000 are active individual entrepreneurs. At the same time, about 1 million men are likely to be in the shadow sector, as the state has no information on their employment. In order to shift the mobilization burden to the shadow economy, the Committee proposes a model of economic booking of employees, which would give white businesses an additional opportunity to book the right employees. According to this model, businesses will be able to book up to 50% of their employees liable for military service. The booking condition is the absence of tax debts and payment of the military fee for each employee according to the formula: 1.5% of the salary + a fixed rate of UAH 20 thousand per month. Strategic enterprises remain subject to Resolution No. 76. How will the reservation be made? Step 1. Payment of the fee The company enters information about employees on the electronic portal, provides a receipt of payment of the fee, in the case of a sole proprietorship - a certificate of cash flow. Step 2. Verification The tax authorities confirm the absence of debts online, and the persons identity is checked online. The person receives a yellow QR code confirming the booking procedure. Within 60 days, you need to update your own data in the ASC to validate the reservation. Step 3. Update your data The booked person visits the ASC, where they update their data and validate the reservation. Each booked person receives a green QR code confirming their booking. The model applies to all employees and sole proprietors, but will not apply to shortage of military accounting specialties. Under this model, a company can choose which employees to book. At the same time, an economical reservation does not give permission to leave. Sole proprietorships are subject to an additional requirement to submit a certificate of turnover in the amount not less than the cost of 3 months of booking to confirm their real activity. We are grateful to Mr. Natalukha and his team for the dialogue and discussion of this important topic with business, and look forward to the final concept of the economy booking model!

On April 1, EBA members met with Dmytro Natalukha, Chairman of the Economic Affairs Parliamentary Committee of the Verkhovna Rada of Ukraine and author of the economic reservation model.

The concept of the economic booking model is being developed in parallel with the work on the main draft law on mobilization. The Committee’s task is to investigate the financial and economic impact of mobilization and to create a possibility of economic reservation of employees in addition to the mechanisms proposed by Government Decrees No. 76 and No. 45.

Currently, about 540,000 people have been mobilized, most of them in the energy, agriculture, industry, manufacturing, and transportation sectors. At the same time, it is the white business that bears the greatest mobilization burden, employing people officially. Currently, about 2.7 million men aged 25-60 are officially employed, and 600,000 are active individual entrepreneurs. At the same time, about 1 million men are likely to be in the shadow sector, as the state has no information on their employment.

In order to shift the mobilization burden to the shadow economy, the Committee proposes a model of economic booking of employees, which would give white businesses an additional opportunity to book the right employees. According to this model, businesses will be able to book up to 50% of their employees liable for military service. The booking condition is the absence of tax debts and payment of the military fee for each employee according to the formula: 1.5% of the salary + a fixed rate of UAH 20 thousand per month. Strategic enterprises remain subject to Resolution No. 76.

How will the reservation be made?

Step 1. Payment of the fee

The company enters information about employees on the electronic portal, provides a receipt of payment of the fee, in the case of a sole proprietorship – a certificate of cash flow.

Step 2. Verification

The tax authorities confirm the absence of debts online, and the person’s identity is checked online. The person receives a yellow QR code confirming the booking procedure. Within 60 days, you need to update your own data in the ASC to validate the reservation.

Step 3. Update your data

The booked person visits the ASC, where they update their data and validate the reservation. Each booked person receives a green QR code confirming their booking.

The model applies to all employees and sole proprietors, but will not apply to shortage of military accounting specialties. Under this model, a company can choose which employees to book. At the same time, an economical reservation does not give permission to leave. Sole proprietorships are subject to an additional requirement to submit a certificate of turnover in the amount not less than the cost of 3 months of booking to confirm their real activity.

We are grateful to Mr. Natalukha and his team for the dialogue and discussion of this important topic with business, and look forward to the final concept of the economy booking model!