ukraine-lavish-tax-exemption

Ukraine introduces lavish tax exemption scheme

Ukraine’s government has rocketed off the year with a lavish tax exemption which includes not having to pay corporate income tax and value-added tax which came into effect as of 17 January 2015 for three months onwards. The absolution also covers VAT refunds claimed wrongly as well as deductions against income tax.

Ukraine’s government has rocketed off the year with a lavish tax exemption which includes not having to pay corporate income tax and value-added tax which came into effect as of 17 January 2015 for three months onwards. The absolution also covers VAT refunds claimed wrongly as well as deductions against income tax. A rocking 95% of the tax amount will be waived with no penalties or interest charged. The scheme will offer taxpayers making a full declaration be excluded from paying financial, administrative, and criminal penalties, as long as 5% of the outstanding tax amount is paid.

The newly appointed chairman of the State Fiscal Service Ihor Bilous  quotes “the bill has come in response to requests from businesses that want to turn the page and start working transparently. Due to the Association Agreement with the EU and the opportunities it opens for Ukrainian businesses, I believe that this tool will be a huge benefit to many companies”.

The Ukraine government concluded by saying that the exemption raises a unique opportunity for companies to regularise their tax position, therefore enabling them to operate legitimately in future. It is intended to usher in an improved tax culture in Ukraine and enable companies in need to obtain financing easier and therefore lift the economy.

Through this voluntary action of declaration of unpaid taxes, businesses will be able to work openly, be audited and attract financing for development of business.