RECENT AMENDMENTS IN TAX LEGISLATION OF UKRAINE
11/08/2020
As of 8 August, new changes to the Tax Code of Ukraine have come into effect.
- There is now no obligation to pre-pay corporate income tax upon distribution of constructive dividends that were introduced by Law No466.
- Definition of business-purpose doctrine was amended. Prior to such enactment, defined rather broadly, it enabled tax authorities to pursue rather aggressive approach and attack any arrangement claiming it lacked genuine business purpose. Now, tax authorities will be able to challenge a transaction only if they substantiate that tax avoiding purposes have been pursued.
- Subject to certain conditions, capital gains derived by Ukrainian individuals from liquidation of foreign business entities in 2020-2021 will be exempted from Ukrainian personal income tax.
- Changes have been introduced to certain audit procedures. The tax authorities are now prohibited of asking questions about paid passive income, other additional benefits and compensations when interviewing employees and employers in the course of the audit on compliance with the employment legislation.
This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.