Tax reform in Ukraine
Sound tax policy is a key element of Ukraine’s Government strategy of economic development.
Therefore the reform of tax system aimed at enchancing the competitiveness of the national economy, extirpating the presuppositions for shadow economy, maintaing transparent competitive conditions for legal business and increasing real personal income is one of the top priorities of its activities.
The draft of a new Tax Code is now under consideration in the Verkhovna Rada (Parliament) of Ukraine and is expected to be adopted soon. The new tax regulations will provide, in particular:
- reduction of the number of taxes and compulsory payments from 39 to 23 with simultanlous lowering of their rates;
- lowering of corporate income tax rate from 30 % to 25 % (on dividends to 15 %);
- reduction of VAT rate from 20 % to 17 %;
- increase the sum of personal non-taxable income to the minimum wages level;
- introduction of two rates of personal income tax (from 10 % to 20 %) instead of five currently in force (from 10 % to 40 %);
- reduction of tax rates on certain means of transport, including trucks and cars;
- enlargement of tax base by the reduction of the list of transactions with zero-rate VAT and of the number of privileges as for corporate taxation;
- abolition of socially groundless privileges as for excise duty and taxes on means of transport;
- introduction of a single tax of 6 % on small enterpises revenues from sales of goods and services and of 10 % on net income of individual enterpreneurs;
- improvement of the procedure of appeals.
The implementation of the new Tax Code will certainly contribute on maintaining and intensification of positive trend in the Ukrainian economy and social sphere, stimulate investments, innovations and domestic demand, clarify many current ambiguities and uncertainties and will lead to benefits for Ukrainian business entities and foreign investors.
For more information, please contact:
Alla Okomaniuk, Press Secretary, or
Ihor Zahlada, Counsellor (Trade and Economic Affairs) of the Embassy of Ukraine
310 Somerset Street West, Ottawa, ON K2P 0J9
Tel. (613) 230-2961, fax (613) 230-2400
2001 11 06