The Parliamens adopts the laws introducing major changes to tax legislation of Ukraine
On 27 March 2014 the Verkhovna Rada of Ukraine has adopted the laws “On Prevention of Financial Collapse and Creation of Preconditions for Economic Growth in Ukraine” (came into force on 1 April 2014) and “On Amending the Law of Ukraine "On State Budget of Ukraine for 2014" (came into force on 3 April 2014), which introduce major changes to the tax law.
The Mazars Ukraine’s tax pratice has prepared analysis of these laws and changes they introduce, among which are:
- Personal income tax (PIT): introduction of a progressive scale of rates
- New mandatory 0.5% pension insurance contribution for all currency purchase operations
- Confirmation of general tax rates: CIT – 18%, VAT – 20% (with no further reduction)
- VAT refund through Internal Debt Government Securities
- Land tax: minimum lease payment for municipal land
- Pharmacy: new 7% rate on VAT introduced
- Agriculture
- Fixed agricultural tax (FAT)
- VAT exemption on grain activity prolonged till 1 October 2014
- Automotive: excise tax rates increased
- Excise tax rates on tobacco products, beer and spirits increased
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