The IMF Staff Completed Technical Support Mission to Ukraine

On July 21, 2020, the IMF Technical Support Mission finalized its work in Ukraine. The mission was devoted to tax policy issues, and took place in a video conference format for almost three weeks, with the participation of the Deputy Minister of Finance of Ukraine. 
 
The Mission was focused on the analysis of the latest changes made to the international tax legislation, particularly the ones established by the Law of Ukraine dated 16.01.2020 № 466-IX “On changes to the Tax Code of Ukraine with regards to improving tax administration, removing technical and logical discrepancies in the tax legislation”.

Experts have reviewed the main tax innovation in the context of BEPS Plan implementation: the establishment of controlled foreign company rules, tools preventing tax incentives and unreasonable use of tax subsidies; improvement of permanent establishments recognition rules; enhancement of transfer price creation control rules. Specifics of the possible implementation of a one-time voluntary declaration program in Ukraine were discussed separately, taking into account the experience of other countries.

The IMF experts provided commentaries with regards to particular aspects of innovation implementation, considering the global experience in using these tax policy instruments. Experts’ advice has practical value for the development of bylaws and explanations on the practical use of tax innovations by the Ministry of Finance and the State Tax Service of Ukraine.