Most entrepreneurs agree with the need for 10-10-10 reform – survey

84% of business representatives surveyed by the Institute of Economic Leadership support the Anti-Corruption Tax Reform project, also known as the 10-10-10 reform. Meanwhile, 60% of respondents identified aspects of the reform, such as simplifying business administration and the de-shadowing of entrepreneurial activity, as critically necessary.

This is evidenced by the results of a survey conducted by the InfoSapiens agency using in-depth interviews.

Additionally, the majority of respondents, namely 73% of small and 64% of medium and large business representatives, stated that they are not satisfied with the current tax system. Over half (56% of entrepreneurs) are convinced that it is currently impossible for most businesses to operate completely legally and pay all taxes without optimisation schemes.

Regarding individual elements of the Anti-Corruption Tax Reform, 88% of respondents highlighted the need for simplifying business administration and 78% were in favour of de-shadowing, with 60% of respondents in both cases considering these aspects "critically necessary". 77% of entrepreneurs called for a reduction in the main tax rates, and for 44% of them, such a reduction plays a crucial role. Small business representatives are the most interested in these changes.

Regarding taxes, most respondents lean towards reducing VAT and income tax to 10% or even lower, while the optimal payroll tax rate is considered to be 20% by businesses.

Ukrainian entrepreneurs are convinced that, under the current tax policy, it is impossible for businesses to move out of the shadow market. According to the results of a survey conducted by the InfoSapiens agency, the overwhelming majority of owners, hired managers, and accountants in both small and medium to large business segments share this view.

Indeed, 70% of respondents indicated that they are not satisfied with the existing tax system, and 56% stressed that they consider it impossible to pay all established taxes in full without "shadow" optimisation schemes.

Moreover, 77% of respondents favoured reducing VAT and income tax rates to 10% or lower. According to the InfoSapiens survey participants, payroll taxes also need to be reduced.

"Responding to the question of which taxes should be reduced to encourage businesses to abandon optimisation schemes, 68% of respondents named payroll taxes. 50% of respondents advocated for a reduction in VAT, and 44% for a reduction in income tax. Every fifth respondent (19%) believes that all three taxes need to be reduced," says the research material.

Background. The Anti-Corruption Tax Reform was proposed by the Office of the President of Ukraine. It envisages reducing the rates of the main taxes on average to 10%. The initiator of the reform project is the Deputy Head of the Office of the President of Ukraine for Economic Issues, Rostyslav Shurma.