The MTWTUU did not support the bill on taxation and deferral of mobilization for seafarers

The Trade Union of Maritime Transport Workers of Ukraine analyzed the new draft law No. 13416-1 on taxation and deferral of mobilization for seafarers.

The union’s statement states that the MTWTUU does not support this draft law due to its significant shortcomings.

After all, the document does not solve key problems: the tax burden remains excessive, the conditions for obtaining a deferral are complex, and social guarantees are formal and without real mechanisms, the union noted.

Key problems of the draft law:

• The tax burden remains. Draft law No. 13416-1 does not change the tax rates that were proposed to be introduced into the Tax Code of Ukraine for seafarers: 18% personal income tax, 5% military duty, 22% SSC.

• Deferral with “conditions”. The only “positive” change is the possibility for seafarers to receive a deferral of mobilization. However, the conditions for granting it are complex: a certificate of registration as a self-employed seafarer, a valid seafarer’s passport (although Ukraine has not yet ratified ILO Convention No. 185, to which the draft law refers), qualification documents, a valid labor or civil law contract with a shipping company or a crewing company resident in Ukraine, confirming the fact of employment of the seafarer, or a certificate from a crewing company resident in Ukraine on the conclusion of such a contract are required. In fact, the deferral is offered only as an “incentive” for paying taxes.

• Exemption from the SSC, but not now. The draft law proposes to exempt a seafarer from paying the SSC “in the event of performing the duties of a seafarer on a seagoing vessel for a total of more than 183 days during a calendar year under an employment contract or civil law agreement, provided that at least 90% of the base for calculating the SSC is transferred to an account in a Ukrainian bank on the territory of Ukraine, with automatic conversion of these funds into national currency at the NBU exchange rate on the day of transfer, the possibility of transferring these funds into cash exclusively on the territory of Ukraine and without the possibility of transferring such funds abroad”. However, this norm will not apply during martial law.

• It is not clear how the provision on the seafarer’s right to “retouch (hide)” information about the total amount of payments in a copy of the employment or civil law agreement and its translation will be implemented.

“The state should offer Ukrainian seafarers clear, transparent conditions of social protection and acceptable mechanisms and tax rates that would encourage seafarers to return to Ukraine,” the MTWTUU emphasized. Earlier, USM reported that in 2025 the number of cases of abandonment of seafarers increased by 30%.