Ukrainian Tax Alert | April 2014
From the date the laws were adopted by the Parliament till the dates they came into effect additional amendments have been adopted. In this Tax Alert we offer to your attention analysis of the latest and final edition of the laws envisaging changes in tax legislation of Ukraine which relate to business operating in Ukraine as well as individuals.
General Application:
- 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
Sector-Specific Tax Changes:
- Pharmacy: new 7% rate on VAT
- Agriculture
- Fixed agricultural tax (FAT)
- VAT exemption on grain activity
- Automotive: excise tax rates increased
- Tobacco and alcoholic beverages: excise tax rates increased