Tymoshenko Orders Audit Of Social Tax Funds

Prime Minister Yulia Tymoshenko requested that Ukraine’s ?social tax? funds be audited. These funds are made up of the social taxes businesses pay on employee salaries. The compound social tax rate is roughly 38% on a salary of ~USD 526 per month. Tymoshenko claims that about 50% of the collected revenues are misappropriated by the social funds. Concorde Capital: This is a smart move, as it will help the government improve its administration of social taxes. In fact, the government?s next step might be to reduce social taxes, as Ukrainian businesses complain the burden on their payrolls is too high.