Transport, Shipping and International Trade Web-Course: “A New Reality of International Business: BEPS, Law of Ukraine #1210 and its Impact on Ukrainian Business and Owners”
The reality of international business is gradually changing and transforming under the influence of changes in legal regulation. At the 7th webinar on the Transport, Shipping and International Trade Web-course we considered the implementation of BEPS de-offshore project provisions in Ukraine.
Also talked about the MLI convention and its importance in counteracting aggressive tax planning; Law of Ukraine No. 1210, which implements BEPS provisions in Ukraine; tax amnesty (as foreseen by Law of Ukraine No. 1232 of 02.09.2019), as well as the rules of Controlled Foreign Companies (CFC), etc.
The process of harmonization the legislation of Ukraine in accordance with the international standards was implemented in several stages: 01.2017 – joining BEPS; 28.02.2019 – Ratification of MLI Convention; 29.10.2019 – FATCA Ratification (First Step to CRS); 16.01.2020 – Adoption of Law No. 1210. As a result only 4 steps of BEPS project have been ratified by Ukraine. However, there were much more factually implemented. These include the control of transfer pricing, the limitation of costs of related party transactions, the prevention of abuse in connection with the application of double taxation treaties, and the mutual agreement procedures.
In this way, the BEPS plan requires countries to revise internal legislation and international conventions, as well as to reform each country’s tax system. Currently, 129 States have become members of the BEPS Plan and 87 States have signed the MLI Convention.