Ministry of Revenues is reviewing draft law «On Amendments to the Tax Code»

The working group under the Council on stimulating investment and business activities reviewed the draft law «On Amendments to the Tax Code». Members of the group will thoroughly analyze all proposed changes and give their suggestions and comments to Ministry analysts.

Deputy Director of Department for Coordination of legislative and methodological work on taxation at the Ministry of Revenues Oleksii Zadorozhnii is convinced that such collaboration will help minimize the differences between financial and tax accounting, as well as formula of the tax object, using the best international practices.

Businesses also admit the need for tax reform. According to Volodymyr Didenko, Head of Tax planning at Group DF, “If we are to regulate tax system as a whole, Section III is a place to start, as healthy accounting ensures transparency in business”.

Participants discussed specific mechanisms of the new procedure for determining the object of taxation for income tax, particularly the threshold level of depreciation; accounting for transactions with securities and derivatives, REPO transactions that will eliminate taxpayers’ duty to submit statements on tax differences, and so on.

Talks resulted in agreement to change the timeline for filing tax returns by banking institutions, and in decision to work out in small groups the controversial issues of bank experts.

Main changes of the draft Law «On Amendments to the Tax Code of Ukraine» aim to simplify the definition of income tax object by eliminating separate tax accounting and determination of tax liabilities based on the indicators of a single financial accounting.

The draft also envisages reduced time costs and financial resources of payers to determine income tax liabilities and prepare tax reporting.