Un-shadowing of the labor market: results of January 2020

State Tax Service conducted 501 audits of business entities that paid wages and other income to individuals in January 2020. As a result, the STS authorities identified 262 cases or 52% of the tax law violations out of the total number of cases.

Subsequently, the Tax Service accrued payment in the amount of 74 million UAH of the personal income tax, more than 23 million UAH of the single social contribution and about 5 million UAH of the military levy to violators of the law.

About 900 of employees hired by the employer without proper registration of employment relations were exposed as a result of the tax control measures in January 2020.

Herewith, employers additionally registered almost 19.5 thousand employment relations with employees in January 2020 due to active explanatory work carried out by the tax authorities jointly with the State Labor Service of Ukraine as part of campaign on legalization of wages and employment initiated by local executive authorities.

In addition, according to the results of other proceeded measures, about 2.700 citizens registered their business deal (those who previously carried business activity without proper registration) in January 2020. As follows, budgets of different levels additionally received 18.3 million UAH of taxes and fees and 19.9 million UAH of the single social contribution.

“We are seeing a sharp increase in the number of employment reports, ie employment contracts. Moreover, the first decade of February 2020 shows that good dynamics continues. Quality awareness campaign gives results that cannot be achieved by force or administrative means” – stated Chairman of the STS Serhii Verlanov.