KYIV. Oct 27 (Interfax-Ukraine) – Ukraine’s National Reforms Council has backed the initiative of some business organizations regarding the introduction of tax on removed capital from January 1, 2018.
The press service of the Ukrainian League of Industrialists and Entrepreneurs (ULIE), Head of the parliamentary committee for tax and customs policy Nina Yuzhanina said that a requirement that Ukraine’s Cabinet of Ministers takes liabilities to introduce tax on removed capital instead of profit tax from 2018 is to appear in the transition clauses to the draft Tax Code.
She said that the decision was supported by the president and some lawmakers. The proposal will be handed to the government for approval and then to parliament.
ULIE said that the requirement was initiated by many business associations.
“The business society is convinced: this would help to avoid double-entry bookkeeping, discrediting in taxes, provide equal protection of businessmen by the law and a chance of investing using own capital. The main idea is that not only the funds that are removed from business are taxed: payment of dividends at 15% and others. The funds that are reinvested into business and profit that is left in companies’ working capital are not taxed,” ULIE said.
National Reforms Council approved draft amendments to the Tax Code drawn up by the Finance Ministry jointly with public experts. The amendments foresee the introduction of the single register on VAT refunds, revision of e-administration system and other things. The document is to be approved at a government meeting and submitted to parliament.
