Prime Minister Denys Shmyhal has announced a complete reformatting of Ukraine’s economic model.
In his video address on March 15, he stated that businesses will have maximum freedom.
Taxes will be reduced, all regulations removed, access to finance made easier, labor relations liberalized.
"Together with the People's Deputies, we have prepared a revolutionary bill in the tax sphere. Thus, at the initiative of the government, medium and large business will have the opportunity to use the single tax option while martial law is in effect," said Shmyhal.
Enterprises with a turnover of up to 10bn hryvnya will be able to switch to a single tax. All other restrictions on the number of workers and activities (except for excisable goods and gambling) will be removed.
Instead of VAT and income tax, entrepreneurs will pay only 2% of turnover.
Individual entrepreneurs of the first and second group will pay a single tax on a voluntary basis. "If there is a possibility and understanding of the need to support Ukraine - pay," - the Prime Minister said.
Also, individual entrepreneurs will not make single social contribution payments for their mobilized employees. The state will do it for them.
Sanctions for violating the law on cash registers will not be applied until the end of martial law.
From 24 February 2022 until the end of the year, taxpayers are exempt from paying for land in the territories where hostilities are taking place.
No VAT will be paid on goods destroyed during the war or transferred to the defense.
The excise tax on fuel will also be abolished, and the VAT rate on these items will be reduced from 20% to 7%.
"Within a few hours after these laws come into force, the Cabinet of Ministers will adopt all necessary provisions to make the new tax system work this week. The government will also decide today to ban business inspections, except those related to public safety and health." , - Shmyhal.
At the same time, the requirements for obtaining permits for a significant part of business activities will be abolished.
Denys Shmyhal called on Ukrainian farmers to receive loans at 0% interest, and the state will guarantee 80% of the amount of such loans to the banks.
"The government has provided more than 25bn hryvnya for these two areas of assistance. These funds will be enough to support all small and medium-sized farmers who plan to start a sowing campaign this year," said the Prime Minister.
On 10 March, Shmyhal called on businesses to resume work in safe regions. Ukraine has intensified cooperation with farmers to fully meet food needs.