The Verkhovna Rada plans to harmonise tax legislation with the EU – Hetmansev
This relates to corporation tax, the 112th directive, as well as directives on anti-tax avoidance rules ATAD-1 and ATAD-2
In the Verkhovna Rada, work is underway on a national income strategy that pertains to Ukraine's vision for its tax system up to 2030. In particular, there are plans to harmonise Ukrainian tax laws with those of the European Union. This relates to corporation tax, the 112th directive, as well as directives on anti-tax avoidance rules ATAD-1 and ATAD-2.
This was revealed by the head of the Rada's tax committee, Danylo Hetmansev, in an interview with Forbes Ukraine.
He particularly mentioned plans to introduce a simplified tax system. In his view, it would be prudent to adopt one of the successful models in use within the EU and implement it in Ukraine. "We are considering Poland's system. Some parameters there differ from Ukraine's. For example, while our turnover limit for small businesses is 7.8 million UAH per annum, in Poland, it's €2 million," he added.
According to Hetmansev, there is also a need to introduce income taxation. "I've previously voiced the idea of consolidating the Unified Social Tax, military fee, and personal income tax into a single tax with a reduced rate. I believe this could lead to more transparent wages and compensate for budgetary losses," he explained. He added that such a decision could bring 200 billion UAH into Ukraine's state budget.
Moreover, there are plans to introduce an environmental tax. "We need to fully reform it and shift away from taxing local emissions, focusing instead on taxing CO2," noted Hetmansev.
He also mentioned that another step in the national income strategy involved aligning local taxes with real economic criteria, as opposed to "the current formal ones."
Background. Mind previously reported that the Verkhovna Rada had abolished the 2% unified tax for sole proprietors from 1 August.
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