Metinvest Group, taking into account associated companies and joint ventures, is expected to increase the payment of income tax by more than seven times in January-June 2021, year-over-year, to UAH 10.2 billion, a source in the tax authorities told Interfax-Ukraine.
In turn, Metinvest confirmed to the agency information about a significant increase in income tax payments in the first half of 2021.
“Enterprises of the Metinvest group will pay income tax in the first half of 2021, replenishing the national budget by UAH 10.2 billion (compared to the first half of 2020, the income tax paid was about UAH 1.4 billion). Thus, according to the results of the first half of the year, income tax payments increased by 7.4 times. This unprecedented increase in tax payments during coronavirus pandemic will help support the cities where Metinvest enterprises operate, pay salaries in full and on time communal and medical workers,” the company told the agency.
At the same time, the group said that Metinvest is one of the largest taxpayers in Ukraine. Thus, in 2020, the company increased its tax payments by 5%, to UAH 22.1 billion year-over-year. Earlier, the group said that over 15 years of its work, it transferred UAH 165 billion to the budgets of all levels.
PwC Ukraine developed a free guide – Expats’ Handbook to help foreigners coming to Ukraine for personal or business goals.
It aims to give a general overview of the key rules and issues that foreigners need to know about the Ukrainian tax and legal environment to allow them to become comfortable and to avoid being overburdened with formalities.
The Handbook is available in many languages, including English, Polish, German, French and Chinese.
“Our country is building a business-friendly climate and opening new opportunities for investors from across the globe. We still have some way to go on this journey – the Ukrainian legal landscape is a work in progress, undergoing changes which will bring it in line with international good practices. But as long as you have a trusted guide to steer you safely through burdensome taxation or immigration compliance issues, you are safe” – commented Slava Vlasov, Partner, Leader, Tax and Legal Services, PwC Ukraine.
Tedis Ukraine company increased tax payments to the budgets of all levels by 5% in 2020, year-over-year, to UAH 1.4 billion.
The company’s press service told Interfax-Ukraine on Tuesday, UAH 612 million of deductions went to the central budget, while UAH 809 million to local budgets.
“During its ten-year history, our company has consistently been one of the largest taxpayers in Ukraine, and since its inception, Tedis Ukraine has transferred over UAH 10 billion to the country’s budget,” Director General of the company Taras Korniyachenko said.
According to Tedis Ukraine, in 2020, the company paid UAH 705 million of retail excise tax on the sale of tobacco products to local budgets, which allowed it to become the largest taxpayer in Ukraine.
As reported, Tedis Ukraine in February was the first to achieve in the Supreme Court the satisfaction of the cassation appeal against the Antimonopoly Committee of Ukraine (AMCU) and the invalidation of a fine of UAH 3.4 billion. The Supreme Court said it sustained the cassation due to the impossibility of bringing any person to justice on the basis of decisions of the AMCU in other cases (having no prejudicial significance), without obligatory proof of guilt in each individual case and taking into account the erroneous legal qualification of actions of Tedis Ukraine LLC.
Tedis Ukraine is one of the largest Ukrainian distribution companies. The company employs about 2,300 employees. The regional network consists of 32 structural divisions throughout the country. The company covers a retail network of about 45,000 retail points throughout Ukraine.
A group of MPs has registered bill No. 4245 with amendments to the Budget Code on the electronic residency mechanism, which implies a preferential income tax rate of 5%, in the Verkhovna Rada.
According to the information on the parliamentary website, the bill was registered on October 21 by MPs from the Holos faction Yaroslav Zhelezniak, Volodymyr Tsabal, Kira Rudik and Halyna Vasylchenko, as well as MP from the Servant of the People Danylo Hetmantsev.
“The idea is simple. If you are an IT specialist from India, China, Pakistan, Germany, or even Belarus, then, being in your country, you can become an electronic resident, that is, an electronic taxpayer. And for this you will pay only one simple tax – 5%, which our sole proprietors pay from turnover,” Zhelezniak said.
According to him, this mechanism may be of interest, in particular, to citizens of Asian countries. On the other hand, this will allow attracting additional funds to the national budget, he said.
“This proposal may not be so interesting to the United States or the EU, but it will definitely be interesting to other countries, especially Asia, the East, which have not a better reputation and more complex tax legislation compared to the Ukrainian one,” Zhelezniak said.
President of Ukraine Volodymyr Zelensky calls for maintaining the tax rate for IT employees at 5%, the President’s Office website reports.
“This industry in the country is developing not due to the state support, but due to the intelligence of Ukrainians. One of the steps that the state can take is not to increase the tax burden on this industry,” the president said at a meeting with representatives of IT business in Lviv within a working trip to the region.
Zelensky noted that at present it is one of the few professions that can not only ensure a decent standard of living, but also reform the state and help combat corruption.
“It is with digital that we can implement any important reforms. And what everyone is saying: we need honest customs, honest law enforcement agencies, we need to overcome corruption – we all understand that the human factor is very difficult to fix. But digital and IT industry can do it,” the president said.
The President of the IT Ukraine association, Taras Kytsmey, added that the Ukrainian IT industry has prospects for development and maintaining such a tax rate will facilitate the influx of personnel from abroad and ensure the retention of talented professionals in Ukraine.
The Verkhovna Rada intends to amend the Tax Code of Ukraine to support culture, tourism and creative industries.
Some 273 MPs voted in favor of bill No. 3851 at first reading.
According to an explanatory note to the bill, the document proposes to introduce tax mechanisms to provide state support to the spheres of culture, tourism and creative industries in order to prevent their stagnation, preserve and create new jobs.
The bill, in particular, proposes not to tax corporate profits, income of individuals, and a single income tax in the form of a cultural grant.
According to the bill, a cultural grant means “targeted assistance in the form of funds or property, which are provided on a free and irrevocable basis at the expense of the national and/or local budgets, international technical assistance for the implementation of a project or a program in the fields of culture, tourism and creative industries.
In addition, in terms of value added tax, it is proposed not to tax operations on import into the customs territory of Ukraine (import of goods) that are part of the national cinematic heritage.
It is also proposed not to tax certain operations for the supply of national films until January 1, 2025, and from January 1, 2023 to January 1, 2025, not to tax operations on the supply of services for the demonstration, distribution and screening of national films and foreign films that are dubbed, voiced in the state language on the territory of Ukraine, provided that such films are adapted, in accordance with the legislation, in the Ukrainian language version for persons with visual and hearing impairments.
BENEFITS, CREATIVE INDUSTRIES, CULTURE, SUPPORT, TAX, TOURISM
