Half of the surveyed EBA companies believe that not being included in the list of high tax trust companies will negatively impact their business

24/ 12/ 2024

As part of the annual Tax Index survey conducted by the European Business Association in collaboration with EY Ukraine, EBA experts assessed recent tax changes and initiatives affecting business operations. Recently, the State Tax Service launched the Territory of High Tax Trust Level project (also known as the White Business Club). Among the companies surveyed by the Association, 43% expressed a neutral attitude toward this initiative, 35% viewed it negatively, and 16% positively. Nearly half of the respondents—46%—aim to be included in the high-tax-trust list but have concerns about the selection criteria. Meanwhile, 14% aspire to join the list and have no objections to it, while 26% have no interest in joining. At the same time, 48% of respondents believe that failing to be included in the list would negatively impact their business. Other tax changes include an increase in the military tax from 1.5% to 5% and an expansion of the base for calculating the Unified Social Contribution (USC). Among Association members, 75% of the surveyed companies reported that the increase in the USC base would affect them. Regarding the increase in the military tax, 49% of surveyed member companies stated they would be unable to compensate their employees for the additional burden. Meanwhile, 21% plan to fully compensate for the increase, 15% partially, and another 15% are undecided or waiting for market reactions.

As part of the annual “Tax Index” survey conducted by the European Business Association in collaboration with EY Ukraine, EBA experts assessed recent tax changes and initiatives affecting business operations.

Recently, the State Tax Service launched the “Territory of High Tax Trust Level” project (also known as the “White Business Club”). Among the companies surveyed by the Association, 43% expressed a neutral attitude toward this initiative, 35% viewed it negatively, and 16% positively.

Nearly half of the respondents—46%—aim to be included in the high-tax-trust list but have concerns about the selection criteria. Meanwhile, 14% aspire to join the list and have no objections to it, while 26% have no interest in joining.

At the same time, 48% of respondents believe that failing to be included in the list would negatively impact their business.

Other tax changes include an increase in the military tax from 1.5% to 5% and an expansion of the base for calculating the Unified Social Contribution (USC). Among Association members, 75% of the surveyed companies reported that the increase in the USC base would affect them.

Regarding the increase in the military tax, 49% of surveyed member companies stated they would be unable to compensate their employees for the additional burden. Meanwhile, 21% plan to fully compensate for the increase, 15% partially, and another 15% are undecided or waiting for market reactions.