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Thresholds of criminal liability for Unified Social Tax evasion (under Art. 212-1 of the Criminal Code of Ukraine) in 2019

17 July, 2019 Newsletters

Article 212-1 “Unified Social Tax on obligatory state social insurance and insurance premiums on obligatory state pension insurance evasion” of the Criminal Code of Ukraine (hereinafter referred to as “the Criminal Code”) envisages the responsibility for evasion from payment of such premiums in fixed amounts – significant (part 1 of Article 212-1), large (part 2 of Article 212-1), especially large (part 3 of Article 212-1).

Such amounts are defined in footnote to Article 212-1 of the Criminal Code and pegged to fixed amount of “tax-free minimum income”, namely 1000 amounts of tax-free minimum income or more for significant amount, 3000 amounts of tax-free minimum income or more for large amount and 5000 amounts of tax-free minimum income or more for especially large amount of tax evasion.

According to para. 5 of Subsection 1 of Section XX and subpara. 169.1.1 of the Tax Code of Ukraine the tax-free minimum income is equal to 50% of minimum cost of living for employable person.

The minimum cost of living for employable person for 2019 is set by the Law of Ukraine “On the State Budget of Ukraine for 2019” and amounts to 1 921 UAH as of January 1, 2019.

Therefore, the thresholds of subsumption of the Unified Social Tax on obligatory state social insurance and insurance premiums on obligatorystate pension insurance evasion in 2019 amounts to (for convenience the data are provided in comparison with data for 2017 and 2018):

Besides, same thresholds are also set for subsumption of tax evasion (Art. 212 of the Criminal Code). For more details please find our newsletter “Thresholds of criminal liability under Art. 212 of the Criminal Code of Ukraine in 2019”.

Please note that subsumption is executed according to threshold in force in the year of commission of the offence.

The above commentary presents the general statement for information purposes only and as such may not be practically used in specific cases without professional advice.

Kind regards,

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