On December 2016 the Verkhovna Rada of Ukraine approved several major budget revenue generating draft laws, namely, No5131, №5132, №5368 as well as Draft Law No 5000 "On the State Budget of Ukraine in 2017". All of these drafts contains comments and proposals of the European Business Association. The abovementioned documents foresee the improving of the current tax legislations as well as include new important provisions aimed at tax system enhancement, upgrading the quality and transparency of tax administration and, of course, improving investment climate in general.
During 2016 the EBA together with the Ministry of Finance of Ukraine, the State Fiscal Service of Ukraine, the members of the Parliament and other interested experts have been working on complex changes to the Tax Code in the framework of the abovementioned draft laws.
The Association initiated and actively contributed to elaborating changes in various sectors:
- Introduction of the mandatory use of cash registers in case of selling consumer electronic goods that are subject to warranty;
- Cancellation of 2% tax to the State Pension Fund in case of the foreign currency purchase by individuals;
- Correction of mistakes that lead to the discrepancy of registration of sums under the formula and account status in Electronic Administration System of VAT;
- Establishing special rules of the administration of certain taxes and duties on the temporarily occupied territory;
- Increasing the minimum size of annual income of taxpayers for controlled operations (TP rules): from 50 million to 150 million hryvnias from any activity and from 5 to 10 million to one contractor;
- Reducing of rent ad valorem charge for extraction of oil;
- Increasing of excise rate for fuel realization with excise sum conversion to ‘basic excise’;
- Exemption of the individuals and legal entities from the taxation of residential and non-residential property and cancellation of the land tax on the temporarily occupied territory;
- Recognition as overpayment and crediting as future payments of accrued and paid taxes since 14 April 2014 on the temporarily occupied territory;
- Inclusion of the possibility of transferring the negative value amounts during reorganization of enterprises to legal successor;
- Cancellation of the certification of alcoholic products;
- Cancellation of the unreasonable requirement of the conformity of excise duty with the sum determined on the date of bottling production excise for imported alcoholic beverages etc.
The Association welcomes and supports the abovementioned draft laws, which considerably improve tax system of Ukraine and provide equal competitive conditions for doing business. We are grateful to colleagues for fruitful cooperation and do believe the President will sign the draft laws very soon.