Page 61 - UKRRptJul21

9.1.7 TMT sector news
Ukraine’s parliament passed a bill on June 3 that imposes additional taxes on foreign companies like Apple, Netflix, Amazon and Facebook, according to Danil Getmantsev, head of the parliament’s committee on finance, taxation and customs policy. The bill said that foreign tech companies that are not registered in Ukraine will pay a 20% value-added tax, or VAT, for digital services they provide to local users. The bill targets content like images, photos, electronic books, magazines, games and foreign TV channels. Among other services are gambling, online advertising, data storage, and the supply of software. Online platforms for remote education are exempt from taxes, as well as companies that deliver digital services directly through their permanent offices in Ukraine. Local users won’t have to pay this tax, according to the law.
On June 29 President Zelenskiy signed the ‘Google tax’ law – legislation that requires international IT companies to pay Ukraine’s 20% VAT tax on services provided to Ukrainians. Following the examples of the EU and Australia, the Rada designed the bill to collect taxes from such large companies as Apple, Microsoft, Facebook, Google, TikTok, and YouTube. Exemption from the tax will be companies with Ukraine revenues below $36,000 and companies dedicated to education.
9.1.8 Tourism sector news
With half of Ukrainians saying they plan domestic vacations this year, an estimated 3mn tourists are expected to travel by car, bus and train to vacation in the warm waters of the Azov. Investment in promotion and in upgrading the region’s 12 health resort villages, would cause the tourism flow to nearly double, to 5.4mn, according to Oleksandr Liev, chairman of Ukraine’s Hospitality Industry Association. Speaking at a press conference in Kyiv
61 UKRAINE Country Report July 2021 www.intellinews.com