Yanukovych signs new tax code

Print version
Dec. 3, 2010, 6:44 p.m. | Politics — by Interfax-Ukraine

Viktor Yanukovych signs new tax code.

Ukrainian President Viktor Yanukovych has signed the Tax Code, according to a statement posted on the Web site of the head of state. On Dec. 2, the Ukrainian parliament adopted the Tax Code with the president's proposals.

The initial version of the Tax Code approved by the Verkhovna Rada on Nov. 18 sparked off massive protests of businessmen discontent with many of its provisions. As a result Yanukovych vetoed it and then submitted proposals to update it.

For example, the simplified system of taxing businessmen was left unchanged.

For the first time the Tax Code approved on Dec. 2 brings together all norms regulating taxation in Ukraine even though the opposition criticized the government for refusing to include the tax service law in the code.

Prime Minister Mykola Azarov has said on numerous occasions that the reduction of key taxes stipulated by the code will make taxation in Ukraine one of the most attractive in Europe. For instance, the profit tax standing at 25% today will be lowered to 23% in 2011, to 21% in 2012, to 19% in 2013, and to 16% in 2014.

The VAT will be cut from 20% today to 17% as of 2014.

As for the personal income tax the current flat rate of 15% will change into a progressive tax with the addition of a 17% rate for incomes ten times higher and more than the minimal wage set by law on Jan. 1 of the tax year (the current minimal wage is Hr 922 a month).

The Tax Code introduces a 5% tax on incomes on deposits as of 2015. However, as of 2011 the tax on dividends will be reduced from 15% to 5%.

Also, for the first time, Ukraine has introduced a tax on real estate.
The Kyiv Post is disabling its online comment section due to an increase in trolls, violent comments and other personal attacks. Other news organizations worldwide have taken similar steps for the same reasons. The Kyiv Post regrets having to take this action. The newspaper believes in a robust public debate, but the discussion must be constructive and intelligent. For the time being, the Kyiv Post will allow comments on its moderated Facebook group The newspaper will consider hosting online comments again when circumstances allow. Thank you from the Kyiv Post.


© 1995–2015 Public Media

Web links to Kyiv Post material are allowed provided that they contain a URL hyperlink to the material and a maximum 500-character extract of the story. Otherwise, all materials contained on this site are protected by copyright law and may not be reproduced without the prior written permission of Public Media at
All information of the Interfax-Ukraine news agency placed on this web site is designed for internal use only. Its reproduction or distribution in any form is prohibited without a written permission of Interfax-Ukraine.