The American Chamber of Commerce in Ukraine has urged Ukraine’s authorities to start discussions on tax reform with the business community and revise some provisions of the law with amendments to the Tax Code (bill No. 1210). “Chamber members are ready to continue providing expertise to make Ukrainian tax legislation transparent, predictable, and effective during discussions on tax reform,” the Chamber said in a press release.
According to Chamber experts, the draft law contains both favorable and unfavorable amendments for the business community.
Among the provisions that will increase fiscal pressure against bona fide taxpayers, deteriorate Ukraine’s investment attractiveness as well as negatively affect the development of the economy are the following: lack of a clear for a taxpayer algorithm of determining a reasonable economic cause (business purpose); equaling tax rates for tobacco-containing products for heating to cigarettes; increase of penalties for late payment of the agreed financial obligation and equaling transactions to the actual payment of dividends with accrual and payment of advance contributions.
The implementation of BEPS (Base erosion and profit shifting) plan is in line with the fulfillment of international obligations taken by Ukraine. However, it would be worth considering such an important and largescale changes separately, the Chamber said.
The reduction of penalties for untimely registration and non-registration of tax invoices not provided to the buyer and the abolishment of the cancellation of VAT refund on the export of soybeans and rapeseeds as well as several other amendments on improvement of tax administration are positive.
AMERICAN CHAMBER OF COMMERCE, TAX CODE
