Parliament Supported Law No 5600

Today members of the Parliament supported the Draft Law No 5600 "On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine to balance the budget revenues" with 255 votes.

"Establishing transparent rules of taxation for all - this is what the law 5600 is about. For ordinary citizens, small and medium enterprises working honestly and openly, the bill is neutral. And those who make superprofits will finally have to pay fair taxes," said Minister of Finance Sergii Marchenko.

Compared with the first reading there were some changes, but the main purpose of the law has not changed. The adoption of the law will create a legal framework for:

• counteracting tax evasion schemes,
• formation of a transparent competitive environment,
• increasing the efficiency of natural resource use

Thanks to the hard work in the Committee on Finance, Tax and Customs Policy, some rules that have been adopted in the first reading were improved. In particular:

• procedural issues on the right of the supervising body to apply to the court for imposing temporary restrictions on the right to travel abroad of the head of a debtor legal entity have been regulated;
• improved the mechanism of accounting for losses by major income taxpayers;
• the procedure for calculating the minimum tax liability per hectare of the land plot has been refined;
• provisions on issuance and cancellation of licenses for production and circulation of alcohol, alcoholic beverages, tobacco products, and liquids used in electronic cigarettes.

The Law proposes the introduction of differentiation of taxation rates for iron ore production depending on the size of the average actual selling price determined as the average value of iron ore according to the IODEX 62% FE CFR China index.

In addition, new provisions aimed at supporting ordinary citizens and certain categories of business entities were added to the draft.

The provisions of support for the population and businesses affected by the COVID-19 crisis remained unchanged. In particular, it introduces an exemption from taxation of personal income tax, single tax, and military fee for citizens and entrepreneurs who receive loans under state programs "Affordable Loans 5-7-9%" and "Affordable Mortgage".