Key Takeaways
- • Individual entrepreneurs in Ukraine risk losing years of pension service credit if supporting documents are not preserved, according to the Pension Fund of Ukraine in Vinnytsia region as reported by Судово-юридична газета.
- • Confirmation rules differ depending on whether entrepreneurial activity took place before or after January 1, 2004, the date Law of Ukraine No. 1058 "On Compulsory State Pension Insurance" took effect.
- • Pre-2004 activity under the general tax system is proven by proof of insurance contribution payments, such as payment orders, bank receipts, postal transfer documents, or Pension Fund information.
- • Entrepreneurs under the simplified tax system face separate documentation requirements that vary by period, including registration certificates, single tax payment certificates, and patents.
Summary
An individual entrepreneur may lose years of credited pension service if certain documents are not preserved, the Pension Fund of Ukraine in Vinnytsia region warned, as reported by Судово-юридична газета. The rules used to confirm entrepreneurial service depend on whether the work took place before or after January 1, 2004, when Law of Ukraine No. 1058 "On Compulsory State Pension Insurance" came into force and changed how insurance periods are accounted for.
For periods before January 1, 2004 under the general taxation system, service is confirmed by documents proving payment of insurance contributions. Accepted evidence includes payment orders, receipts from banking institutions, documents confirming postal money transfers, and information from the Pension Fund of Ukraine on contribution payments. Entrepreneurs who worked under the simplified taxation system may instead provide a certificate of payment of the single tax, a special trade patent, a patent for payment of a fixed amount of personal income tax, or a certificate of registration as a simplified-system entrepreneurial entity.
From January 1, 2004, periods are credited based on data from the register of insured persons within the State Register of Compulsory State Social Insurance, with the underlying basis being insurance contributions paid by the individual entrepreneur.
Separate conditions apply to simplified-system or fixed-tax entrepreneurial activity when determining the right to a pension by age. For January 1, 1998 to June 30, 2000 inclusive, service is confirmed by a certificate of registration as an entrepreneurial entity. For July 1, 2000 to December 31, 2017 inclusive, the period is credited if insurance contributions or a single contribution were paid, regardless of amount, except where the entrepreneur was exempted from paying contributions.
For periods before January 1, 2004 under the general taxation system, service is confirmed by documents proving payment of insurance contributions. Accepted evidence includes payment orders, receipts from banking institutions, documents confirming postal money transfers, and information from the Pension Fund of Ukraine on contribution payments. Entrepreneurs who worked under the simplified taxation system may instead provide a certificate of payment of the single tax, a special trade patent, a patent for payment of a fixed amount of personal income tax, or a certificate of registration as a simplified-system entrepreneurial entity.
From January 1, 2004, periods are credited based on data from the register of insured persons within the State Register of Compulsory State Social Insurance, with the underlying basis being insurance contributions paid by the individual entrepreneur.
Separate conditions apply to simplified-system or fixed-tax entrepreneurial activity when determining the right to a pension by age. For January 1, 1998 to June 30, 2000 inclusive, service is confirmed by a certificate of registration as an entrepreneurial entity. For July 1, 2000 to December 31, 2017 inclusive, the period is credited if insurance contributions or a single contribution were paid, regardless of amount, except where the entrepreneur was exempted from paying contributions.
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