Ukraine amends Tax Code
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.
- 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
- 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
- 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.
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