The draft law is aimed at improving the system of mandatory social contributions and the establishing sustainable mechanisms for financing social protection measures, including pension provision, healthcare, social rehabilitation of war invalids of 1992-1993, as well as the implementation of state policy in the fields of demography and repatriation.

The document provides for the introduction of a unified social contribution, which will replace the current system of several insurance payments to extra-budgetary funds while maintaining their functioning and statutory allocation of funds.

The key advantages of the reform are simplification of administration, consolidation of payments, reduction of the burden on the payroll in the extra-budgetary sector and reduction of the imbalance between the budgetary and extra-budgetary spheres.

The draft also defines the categories of payers, taxable objects, the procedures for calculating and paying the contribution, as well as control and liability measures.

It is proposed that administration of the contribution be centralized within the tax authorities system, which is expected to improve the collection of rates and enhance oversight efficiency.

 
Special attention was given to the proposed contribution rates: for budget-funded organizations - 16.5%, for other categories of taxpayers - 20%. It also provides for the cancellation of a number of existing payments, including deductions of 1% of employees' salaries.

It is expected that the adoption of the law will increase revenues to extra-budgetary funds, ensure greater transparency of the system and create equal conditions for all categories of taxpayers.