16:36 10.08.2018

Poroshenko signs law stimulating activities of family farms

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Poroshenko signs law stimulating activities of family farms

Ukrainian President Petro Poroshenko has signed the law introducing amendments to the Tax Code of Ukraine and some laws of Ukraine on stimulating the creation and operation of family farms, which allows citizens living and working on their land to obtain the official status of farmers, sell their products and get social protection and the right to a pension.

A statement posted on the president's website on Friday says the document amends the Tax Code and the laws of Ukraine on farming, on state support for agriculture in Ukraine, on the collection and accounting of a single contribution to compulsory state social insurance, and on state registration of legal entities, individual entrepreneurs and public organizations.

According to the changes in the law, the entrepreneurs who organized the farms belong to the payers of the single tax of the fourth group of individual entrepreneurs.

The law foresees the provision of state aid to pay a single contribution to compulsory state social insurance (from 10% to 90% of the minimum insurance payment) for each member of the farm for ten years at the expense of the state budget of Ukraine through the mechanism of additional payment in favor of insured members of a family farm of a single contribution to state social insurance.

The document also clarifies a number of clauses on the establishment and operation of a family farm without acquiring the status of a legal entity.

The implementation of the law will help create conditions for the creation of family farms and bringing entrepreneurial activity in the agrarian sphere out of the shadows, which will positively influence the growth of revenues to local budgets from the payment of taxes and creation of new jobs in rural areas.

As reported, the Verkhovna Rada on July 10 adopted at second reading, with technical and legal amendments, draft law No. 6490-d introducing amendments to the Tax Code of Ukraine and some laws of Ukraine on stimulating the creation and operation of family farms.

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