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Ukraine Ministry of Finance Publishes Draft Strategy for 2021 to 2023 for Consultation — Orbitax Tax News & Alerts

The Ukraine Ministry of Finance has published its draft Strategy for 2021 to 2023 for consultation. The draft Strategy contains 5 main areas:

  • Prudent Financial and Debt Policies. Improving Ukraine's image among international investors;
  • Tax Incentives for Economic Development;
  • New Human Resources Policy and Digitalization in the State Tax Service;
  • De-shadowing; and
  • Improving the Efficiency of Budget Expenditures

With respect to Tax Incentives for Economic Development, the draft strategy includes:

  • The introduction of a single form of tax reporting on Personal Income Tax and Single Social Contribution tax by 2021;
  • The write-off of fines, penalties, and debt that are considered uncollectable;
  • The automatic refund of tax overpayments to taxpayers (without taxpayer's application);
  • The introduction of a compensatory VAT rate on transactions for the supply of intermediate agricultural goods; and
  • Tax benefits, which include:
    • stimulating the renewal of capital assets by deferring the payment of VAT on imports of production equipment not produced in Ukraine (year 2021); and
    • exempting from taxation the share of corporate profits spent on investment

Comments and suggestions on the draft Strategy can be sent by e-mail until 25 June to