Ministry of Finance Presents Design of Tax Reform

The Finance Ministry presented the draft of tax reform in the suggested amendments to the Tax Code of Ukraine, Ukrayinski Novyny informs.

Specifically, the reform stipulates replacing the tax police with the financial police to be supervised by the Finance Ministry.

Secondly, the reform launches a ‘electronic taxpayer room’ to facilitate interaction with the tax authorities.

The plans for tax verifications will be published on the Ministry’s website. The verifications will be announced 15 days in advance. In addition, the Ministry will get the database of the State Fiscal Service.

The Finance Ministry will be responsible for tax administration, VAT recovery and taxpayer accounts.

The corporate tax rate (18%), alcohol and tobacco excise duty will stay the same, while the new personal income tax rate – 10% of minimal wage – for self-employed individuals who don’t register their undertaking will apply.

It means the new category of taxpayers is introduced – self-employed individuals who don’t register their undertaking and whose annual income doesn’t exceed 250 minimal wages.

Two VAT recovery registers are proposed to be united into one.

Finally, the reform stipulates increasing the fines for untimely registration of tax invoices.

The Finance Ministry expects the Parliament to consider the tax reform this Fall.

Source: Ekonomichna Pravda