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be paid on assets in Ukraine and 9% on foreign.
More than 250,000 entrepreneurs have switched to the 2% tax rate. The number of single tax, 2% payers is 252,900 people, of which 48,100 are legal entities, said the chairman of the Tax Committee of the Council, Danylo Hetmantsev. At the same time, according to Hetmantsev, the cancellation of benefits for the import of goods into the customs territory from July 1 did not affect the number of payers, which increased by 9,500 people since August 1 (2,900 of which are legal entities). Hetmantsev noted that the introduction of the tax made it possible for businesses to weather the difficult financial situation during the first weeks of the war and has not led to a revenue decrease for the state budget. As a reminder, due to the war, the Ukrainian Government allowed entrepreneurs under the 5% fixed tax rate plan to pay 2%.
Ukrainian business abroad has been exempted from the risk of double taxation. Ukrainian authorities have solved one of the key problems of entrepreneurs abroad - the risk of double taxation. In particular, it is now possible to get a certificate confirming Ukrainian tax residence status online, the State Regulatory Service noted. The corresponding norm is fixed in the order of the Ministry of Finance No. 248. The order approved the form of certificate-confirmation of residency to avoid double taxation; the procedure for issuing the relevant certificate, particularly in electronic form, is defined; it also provides for its issuance with transliteration in English. Thus, a business forced to stay abroad is protected from double taxation.
Ukraine plans to introduce an additional duty for importers. The Cabinet of Ministers is developing a draft law to impose an additional tax on the purchase of foreign currency by importers. According to Chairman of the Finance Committee Yaroslav Zheleznyak, the chosen mechanism does not provide additional import duties, which are difficult to administer. It introduces a 10% fee on currency exchange transactions for the purchase of all imported goods and services. Currently, importers buy currency at the official rate of the National Bank, which is fixed at a new level of UAH 36.57 per dollar. If the new draft law finds support in the parliament, then, in fact, the currency purchase rate by importers may increase to UAH 40.23 per dollar because they will be obliged to pay UAH 3.66 to the budget. The purpose of the draft law is not only to increase revenue to the state treasury but also to reduce the demand for imported goods and services among Ukrainians.
A "10-10-10" tax model is discussed in the president's office. In an interview with Forbes, one of the high-ranking tax service employees said that the model of introducing a 10% income tax, 10% personal income tax, and 10% VAT is being discussed in circles close to the President of Ukraine. The tax reform will include a large-scale abolition of benefits and increased liability for violations of tax legislation. Provisions are made to provide access to tax services and information on bank accounts to prevent tax evasion. According to the president’s office, quick tax reform implementation is hindered by budget revenue uncertainty for the coming year. Currently, the budget is unbalanced. Ukraine covers 30% of its needs with its own revenue. The Office of the President believes that making a final decision on the matter will take place in the next few months or half year.
Zelenskyy signed the law on the work of the financial sector during the war. The President of Ukraine, Volodymyr Zelenskyy, signed a law that
42 UKRAINE Country Report September 2022 www.intellinews.com