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Fines for violating the pension insurance legislation have been increased

11.06.2009

This Law has incorporated changes to the Code of Administrative Offences of Ukraine and the Law of Ukraine “On Statutory State Pension Insurance”.

Pursuant to the incorporated changes, violations of the statutory state pension insurance legislation, namely, concealing (reducing) an amount of salary, deviating from registration, untimely filing of pension insurance reporting and filing of this reporting in a manner other than that prescribed by the rules and other violations will entail a fine imposed on officials, in amount that ranges between 20 and 30 non-taxable minimum incomes of citizens (against the formerly prescribed deviation between 8 and 15 non-taxable minimum incomes of citizens). A repeated violation of such kind will impose ranging between 30 and 40 non-taxable minimum incomes of citizens (against the formerly prescribed deviation between 10 and 20 non-taxable minimum incomes of citizens).

Non-payment or untimely payment of insurance contributions, including advance payments, in amount that does not exceed 300 non-taxable minimum incomes of citizens will entail a fine ranging between 25 and 50 non-taxable minimum incomes of citizens. For an amount more than 300 non-taxable minimum incomes of citizens, a fine will equal from 50 to 100 non-taxable minimum incomes of citizens.

A failure to pay (transfer) or untimely payment (untimely transfer) of insurance contributions by insurers, including contributions computed additionally by insurers or local Pension fund authorities will entail a fine accounting for 10% of the untimely paid amount (formerly a fine depended on a payment delay period – it grew as the delay period increased).

The Law also provides for a 60 calendar month instalment for paying charged fines and penalties if an insurer so prefers. In this case the first payment may be extended for 90 calendar days.

The Law became effective starting on June 11, 2009.

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