Yanukovych allows three-, four- and five-star hotels not to pay profit tax during 10 years

Ukrainian President Viktor Yanukovych has signed law No. 5180-VI on amendments to the transitive provisions of the Tax code on the specifics of collecting the profit tax from companies providing hospitality services. 

The report was posted on the Web site of the head of state.

As reported, a total of 234 lawmakers supported cabinet's draft law No. 10724 registered in the parliament on July 5, 2012.

"Temporarily, for the period of 10 years starting from January 1, 2011, companies providing hospitality services in three-, four- and five-star hotels, including newly built and reconstructed ones, or where overhaul was performed are not to pay profit tax [if income from the provision of accommodation services is at least 50% of total income of companies over the relevant reporting period]," reads the document.

During the presentation of the draft law in the parliament the head of the parliamentary committee for finances, banking operations, tax and customs policies, Vitaliy Khomutynnyk, said that the 75% requirement applies to five-star hotels due to the high price of their services.

"If we speak about three- or four-star hotels, 75% of them are on the verge [of the limit], as the price of rooms is less, while the cost of restaurant, household and other services is high," he said.