The Chief of the Tax Inspectorate in Holosiiv district Svitlana Polischuk comments:

“Please pay attention that the notion “principal place of work” has been already defined, as specified in Law of Ukraine dd. December 28, 2014, No.77-VIIІ, On Changes to Some Enactments of Ukraine. This will streamline the mandatory social security system and make salary funds legitimate; the said law alters some provisions stipulated in the Law of Ukraine adopted on July 08, 2010, No. 2464, On Collection and Accounting for Social Security Contributions”.

Thus, as said by Svitlana Volodymyrovna, the principal place of work is treated as an area where an employee works under the labour contract, to prove it a respective service record is entered into the employment book kept there.

“I’d like to underscore that the definition of “persons engaged in professional activity and liable to pay social security contributions” has been also given. Thus, starting 2015, the persons carrying out independent professional activity, namely scientific, literary, artistic, inventive, educational or teaching, medical, and judicial one, including legal counsel, notary activity, or persons engaged in religious  (missionary) or other similar activity, who obtain income from the said activity (irrespective of whether they are hired employees or entrepreneurs), are regarded to be taxpayers liable to pay mandatory social security contributions“, – accentuated Deputy Chief of Inspectorate.

Besides, according to S.Polischuk, the taxpayers listed in par.4 (apart from persons – entrepreneurs that have chosen the simplified tax procedure) and par.5, part 1, article 4 of Law No.2464, with the accrual basis to account the income (earnings) obtained from the activity levied with the individual income tax, provided that they did not obtain income (profit) in the accounting year or month, are given the right, if necessary, to independently determine the accrual basis. Thus, the taxpayers, on intention to do it, in order not to interrupt the length of pensionable service for a particular year or month that they didn’t obtain any income, can independently determine the accrual basis of accounting the social security contributions. In this case, the amount of social security contributions cannot be less than the minimum contribution and cannot exceed the maximum amount. This norm will be applied to compute the income for 2015.

Along with this, the general provision states that if the accrual basis of accounting with respect to social security contributions (except compensation under civil law contracts) that do not exceed the minimum salary (earnings) for a month, set out in the legislative regulations, the social security contribution is calculated based on the minimum salary paid in the accounting month, as set out in the law, and the specified contribution rate, provided that the employee has been at work during a full calendar month.