Ukrainian Tax Alert | April 2014
On 27 March 2014 the Verkhovna Rada of Ukraine has adopted the laws “On Prevention of Financial Collapse and Creation of Preconditions for Economic Growth in Ukraine” (came into force on 1 April 2014) and “On Amending the Law of Ukraine "On State Budget of Ukraine for 2014" (came into force on 3 April 2014), which introduced major changes to the tax law.
From the date the laws were adopted by the Parliament till the dates they came into effect additional amendments have been adopted. In this Tax Alert we offer to your attention analysis of the latest and final edition of the laws envisaging changes in tax legislation of Ukraine which relate to business operating in Ukraine as well as individuals.
General Application:
- Personal income tax (PIT): introduction of a progressive scale of rates
- New mandatory 0.5% pension insurance contribution for all currency purchase operations
- Confirmation of general tax rates: CIT – 18%, VAT – 20% (with no further reduction)
- VAT refund through Internal Debt Government Securities
- Land tax: minimum lease payment for municipal land
Sector-Specific Tax Changes:
- Pharmacy: new 7% rate on VAT
- Agriculture
- Fixed agricultural tax (FAT)
- VAT exemption on grain activity
- Automotive: excise tax rates increased
- Tobacco and alcoholic beverages: excise tax rates increased
Gregoire Dattee