Yanukovych signs new tax code
Dec. 3, 2010, 6:44 p.m. |
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.