Ukraine amends Tax Code

11/ 01/ 2019

On 1 January 2019, the Law of Ukraine “On Amendment of the Tax Code and Certain Other Legal Acts of Ukraine regarding Improvement of Administration and Revision of Certain Taxes” (“Law”) came into force. The Law is aimed at improving  tax administration and increasing some tax rates to ensure the budget balance. Major developments are as follows.

Transfer pricing

  • the Law introduces the “substance over form” principle in respect of controlled transactions

Value added tax

  • the Law introduces VAT exemption for import of wind power units, certain liquid dielectric transformers, solar panels and inverters

Excise tax

  • from 1 July 2019, the System of Electronic Administration of Fuel Sales (“SEAFS”) will reflect all fuel movements and data of counter devices in respect of each excise warehouse
  • SEAFS will also apply to ethyl alcohol

Rent tax

  • the rates of rent tax were increased by 2% for oil and condensate extraction: from 29% to 31% — for deposits with up to 5000 meters depth and from 14% to 16% — for deposits exceeding 5000 meters depth

We will be glad to advise on the potential impact of the Law on your business and propose legal solutions to make it compliant with the amendments.

Additional notes

For further information on the topic please contact Mykola Stetsenko, Co-Managing Partner, or by telephone +380 44 591-3355 or via e-mail.


AVELLUM is a leading Ukrainian full service law firm with a key focus on Finance, Corporate, Dispute Resolution, Tax, Real Estate, and Antitrust. We are recognized by all major international and local legal directories.

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