President Ratifies Ukrainian Tax Code Amendments
Ukraine’s President, Petro Poroshenko, has ratified three acts containing changes to tax law in the areas of transfer pricing, the obligations of taxpayers, and tax rules for non-profit organizations.
The first, “On Amendments to the Tax Code of Ukraine Concerning Transfer Pricing,” increases the thresholds for companies’ transactions that will be subject to transfer pricing scrutiny, being deemed “controlled,” from an annual combined value of UAH20m (USD938,000) to UAH50m, and for single transactions – or groups of connected transactions – with a single entity from UAH1m to UAH5m.
The second Act, “On Amendments to the Tax Code of Ukraine on Reducing the Tax Burden on Taxpayers,” contains changes to simplify and streamline the procedures for investigations by the authorities, giving the taxpayer more clarity and a stronger right of appeal. The Government is seeking to improve relations between taxpayers and the authorities, in particular to encourage voluntary compliance.
The third Act, “On Amendments to the Tax Code of Ukraine Concerning the Taxation of Non-profit Organizations,” sets out clear criteria for identifying non-profit organizations and sets out their rights to tax concessions.
