Business awaits the promulgation of Law 466 (Draft Law No.1210)
On May 21, the President of Ukraine signed the Law 466 (Draft Law No.1210) on Amendments to the Tax Code of Ukraine on Improvement of Tax Administration, Elimination of Technical and Logical Inconsistencies in Tax Legislation.
The European Business Association is waiting for the text of the law to be published so that the business can familiarize itself with important changes that remained unclear for about 5 months after the adoption of the law.
We expect that the signed law includes the following rules important for the business:
- Abolishing discriminatory “soybean amendments” to restore equitable tax conditions and fair competition in the agricultural market.
- Reducing penalties for late registration of VAT invoices and adjustment calculations, which are not provided to the recipient (buyer).
- Changes to the definition of the base of excise duty on electricity given the introduction of the Law of Ukraine № 2019-VIII On the electricity market.
- Standards for the wider use of accelerated depreciation.
- Increasing the cost threshold for recognizing an asset as non-current.
- Increasing the threshold of annual income (up to 40 million hryvnias), which in case of non-achievement the taxpayers are allowed not to apply the adjustment of the financial result to tax differences.
The business community is grateful that the voice of business has been heard. Clarity about tax rules is essential for businesses to be able to make future plans. Some of the rules provided for in this document address the pressing issues which have concerned the business for several years. For example, the epic around "soybean amendments" which lasts 2.5 years. Although the text contains contradictory aspects that will need to be changed. Thus, there is insufficient time given to business and controlling authorities to prepare for the implementation of such large-scale changes. As soon as the text of the document becomes available, the business community will submit its proposals to be considered and included in the Law.
Once again, we emphasize the importance of supporting the business during and after the lockdown, so that companies can get back on their feet faster. In particular, we call for a reduction in the tax burden on the wage fund, an extension of the land tax and real estate tax benefits until the end of the year, and the development of other measures that will stimulate entrepreneurship and boost the economy.