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Amendments to the Tax Code Submitted to Parliament

The Parliament of Ukraine registered Draft Law No 5600 "On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine on the balance of budget revenues".

The provisions proposed in the Draft Law are aimed at:

  • reducing the tax burden on recipients of state aid under the programs "Affordable Loans 5-7-9%" and "Affordable Mortgage 7%";
  • creating more efficient mechanisms for paying taxes;
  • preventing tax abuses;
  • protecting the environment by gradually increasing the ecological tax;
  • increasing the rate of taxation for the use of state subsurface resources and linking it to the market value of minerals;
  • creation of fair taxation conditions for all taxpayers.

The Draft Law establishes a limitation for a budget refund of VAT for intermediary taxpayers if purchased or imported goods will be further supplied in the customs territory of Ukraine.
Other provisions impose restrictions on the inclusion of tax invoices prepared more than 6 months after the transaction. Such innovations are primarily aimed at improving administration and counteracting frauds.

In terms of balancing the budget revenues, it is proposed to introduce resource provisions. These innovations revise the rates of excise tax, environmental tax, and rent. For example, tax rates have not been revised since 2019, and excise tax rates on alcoholic beverages have not been revised since 2017.

The adoption and implementation of the provisions of the Draft Law will contribute to additional revenues to the budgets of about UAH 50 billion per year.