Draft Law No. 1863* (the Law)introduces changes to the rules on the “reduced coefficient” to USC rates for2015. The conditions became less strict, but still not all companies will beable to utilise the decrease.

Namely, the new conditions are thefollowing:

• The monthly USC base per insured person increases by at least 20% compared to the average monthly USC base in 2014.
• The average USC payment per insured person (with the coefficient) is not less than the average monthly USC payment in 2014.
• The number of insured individuals does not exceed 200% of the average number of insured persons in 2014.

The coefficient is calculated monthly as the ratio between the average monthlyUSC base for 2014 and the current average monthly USC base. As previouslystated, it cannot be less than 0.4.

The Law will come into force starting from the first date after its publishing.The final text has not been published yet.

* Draft Law“On Changes to the Law of Ukraine “On Collecting and Administering USC(Regarding Decreasing Charges on Salary Fund)” No 1863 dated 27 January2015. 

Contacts:

Ron Barden,Partner & TLS Leader, ron.j.barden@ua.pwc.com
Magdalena Patrzyk, Director, Tax and Legal Services, magdalena.patrzyk@ua.pwc.com
Yury Zakharchenko,Manager, Tax and Legal Services, yury.zakharchenko@ua.pwc.com
75 Zhylyanska Street| Kyiv | Tel:  +380 44 354 0404 | Fax: +380 44 354 07 90 | pwc.ukraine@ua.pwc.com  |  www.pwc.com/ua 

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© 2015 Limitedliability company «PricewaterhouseCoopers». All rights reserved. PwC refers tothe Ukrainian member firm, and may sometimes refer to the PwC network. Eachmember firm is a separate legal entity. Please see www.pwc.com/structure for furtherdetails.

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