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Publication date: 13.05.2024
Peculiarities of taxation of the income of an employee registered with a resident of Diya City as a part-time employee
Controllers explained how to tax the income of an employee who works for a resident of Diya City on a part-time basis, that is, during the time free from the main job on the basis of an employment contract with another employer. It is noted that, in accordance with the Tax Code of Ukraine, such an employee is subject to the personal income tax rate of 5%. This rate is applied to the income paid to him by a resident of Diya City, including wages and other types of remuneration provided for by Law No. 1667. Additionally, it is reminded that the single contribution to the mandatory state social insurance for such an employee is 22% of the actual accrued wages , regardless of its size., specified in the Law of Ukraine dated July 15, 2021 No. 1667-IX "On stimulating the development of the digital economy in Ukraine" (hereinafter - Law No. 1667).
Moreover, clauses 2 and 3 of the first part of Article 5 of Law No. 1667 do not provide for the division of Diya City resident employees into full-time and part-time employees.
According to subsection 170.141.2 of the Tax Code of Ukraine (hereinafter referred to as the Tax Code of Ukraine), at the rate of 5%, specified in clause 167.2 of the Tax Code, the income of a taxpayer — a specialist resident of Diya City, paid to him by a resident of Diya City in the form of:
· salary;
· fees under a gig contract concluded in accordance with the procedure provided for by Law No. 1667, including fees for the creation and transfer of rights to works created to order;
· royalties for the creation of official works and the transfer of rights to official works.Therefore, the DPS informs, the salary of an employee who works part-time for a resident of Diya City on the basis of an employment contract should be taxed by personal income tax at the rate of 5%, provided that all requirements specified in clause 170.141 of the Code of Civil Procedure are met.
Benefit in connection with temporary incapacity at the expense of the employer's funds (the first 5 days) is calculated and paid for all places of work: both main and part-time.
Assistance in connection with temporary incapacity at the expense of the Pension Fund of Ukraine (starting from the 6th day) is provided at the main place of work (activity) OR at the place of part-time work.
In the letter of the Ministry of Defense of Ukraine dated March 22, 2023 No. 32ЗПИ/114 "Regarding military records of employees who work part-time", the Main Personnel Department of the General Staff of the Armed Forces of Ukraine provides clarification regarding the maintenance of military records of employees who work part-time.
Thus, the letter states that in accordance with the fifth part of Article 34 of the Law of Ukraine of March 25, 1992 No. 2232-XII "On Military Duty and Military Service", the personal record of conscripts, conscripts and reservists provides for the recording of information on such persons at their place of work or study.
It is also stated that the Allowance in connection with temporary incapacity for work is calculated and paid for all places of work, including both main and part-time. Starting from the 6th day of incapacity for work, assistance is provided at the main place of work or at the place of part-time work.In the letter of the Ministry of Defense of Ukraine, it is emphasized that the personal accounting of persons who work part-time is carried out on the general principles determined by the relevant Procedure. At the same time, the General Staff reported that this position may be revised after the termination or cancellation of the legal regime of martial law.
In accordance with Part 14-1 of Article 8 of the Law of Ukraine dated July 8, 2010 No. 2464-VI "On the collection and accounting of a single contribution to mandatory state social insurance" (hereinafter - Law No. 2464), a single contribution to mandatory state social insurance insurance (hereinafter referred to as a single contribution) for a payer who is a resident of Diya City, who in the calendar month met the requirements specified in subsections 2, 3 of the first part, clause 10 of the second part of Article 5 of the Law of Ukraine dated July 15, 2021 No. 1667-IX "On Stimulating the Development digital economy in Ukraine" (hereinafter - Law No. 1667), is established in the amount of the minimum insurance premium:
a) for the amount of wages charged to each insured person according to the types of payments, which include basic and additional wages, other incentive and compensatory payments, including in kind, determined in accordance with the Law of Ukraine dated March 24, 1995 No. 108/95 - VR "On remuneration";
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The minimum insurance contribution is the amount of a single contribution, calculated as the product of the minimum salary amount by the amount of the contribution established by law for the month for which the salary (income) is calculated, and is payable monthly (clause 5, part 1, article 1 of the Law No. 2464).Part 5 of Article 8 of Law No. 2464 sets the single contribution for all single contribution payers (except for preferential categories) at 22 percent.
If the basis for calculating the single contribution does not exceed the amount of the minimum wage established by law for the month for which the income was received, the amount of the single contribution is calculated as the product of the amount of the minimum wage established by law for the month for which the income (profit) was received and rates a single contribution.
In the case of calculation of wages (income) of the FD from sources other than the main place of work, the rate of the single contribution, established by this part, is applied to the determined basis of calculation, regardless of its size.
Thus, an employee who works for a resident of Diya City on a part-time basis (in his free time from his main job at another employer) is charged a single contribution in the amount of 22 percent of the actually accrued salary (income), regardless of its amount.
