LFMI examination of legislative amendments providing for modification of the procedure for the payment of state social insurance contributions by individual business owners and full members of partnerships

In order to increase the attractiveness of individual activities, in our examination we propose allowing members of individual businesses and full members of corporate partnerships to conclude employment agreements with their sole proprietorships or partnerships and collect social insurance contributions from the income earned, whereas capital income (withdrawn from individual businesses or partnerships) should be treated as dividends and be exempt from the payment of state social insurance and health insurance contributions. To avoid increasing the scope of coverage by the non-sustainable the State Social Security System (“Sodra“), we suggest deleting the provisions of the Draft Law providing for an obligation for participants of households to get insured through the state social insurance.