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2010-02-08

Ukraine's favorable taxation system

Establishing Abroad has met Clara Bodin from Clarus in Ukraine. Clara is now in Sweden for a period of time and we took the opportunity to meet with this successful young woman who dared to establish business on the Ukrainian market.

Claras company
Claurs helps foreign companies to recruit skilled employees in Ukraine.

Clara says that in Ukraine everybody has a chance to start a sole proprietorship and have one single constituent. Specifically, this means that you can use this variant instead of a traditional employment.

Taxes for individual companies in Ukraine are extremely
advantageous. You are entitled to invoice amounts up to 70 thousand Euros per year and you pay a tax amount for about 50 Euros per month.

The difference is that if you have an employment, you will have a flat tax rate of 15 percent. Of course this also appeals to employers because when the staff has sole proprietorship, they will avoid the general payroll tax which is about 36 percent.

Regarding pensions, Clara says that if you have a
traditional employment you will only receive around 100 Euros in pension per month after working many years. Most individuals do not feel a great motivation to get hired by a company instead of starting a sole proprietorship.



                                                                                    Cecilia Helland
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