Review of news about taxes during martial law: increased taxation of economic entities, having economic relations with the aggressor state
Given a number of changes made by the government to the Tax Code of Ukraine, BDO in Ukraine’s experts on Ukrainian and international taxation analyzed them and commented on key points in recent publications on Дія.Сітy and penalties and limitation periods. The latest issue for taxes during martial law is devoted to the issue of increased taxation of economic entities having economic relations with the aggressor state.
On April 1, the Verkhovna Rada of Ukraine adopted Draft Law No. 7232 “On Amendments to the Tax Code of Ukraine on the Taxation of Business Entities Connected with Economic Relations with the Aggressor State”.
Interesting on the topic: Taxation during martial law
Draft Law No. 7232 provides for the application of an increasing coefficient of 1.5 for the tax liability for income tax, environmental tax, rent and property tax for economic entities connected with economic relations with the aggressor state. Such entities will include not only those companies that are owned by a resident registered in the aggressor state and/or receive income from activities in the territory of the aggressor state, but also taxpayers who are members of international groups of companies that:
- carry out activities, receive income or in which there are financial obligations to residents of the aggressor state;
- provide economic support to the aggressor state.
If you have additional questions, please consult tax experts of BDO in Ukraine.