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July was literally “hot”, not only because of the temperature records but also due to high attention to the new Laws and proposals. According to the officials more transparency and clarity must be brought in Ukraine.
Law #1525-IX, known as “Tax on Google”.
Starting from January 01, 2022, non-resident companies that supply e-services in Ukraine and do not have a permanent establishment (PE) will have to pay 20% VAT Tax. Types of e-services that are concerned:
- paid access to e-books, images, texts, video and other information;
- access to search engines and databases;
- online teaching, virtual courses & classes;
- cloud-based solutions & remote software;
- marketing and advertising.
The Law will mostly affect big IT companies: Google, Apple, Booking, Netflix, Coursera and others. However, it will not have an impact on companies that distribute their services through local permanent establishments.
Draft Law #4572 about the Fund of State Property reform.
On July 15th, in the first reading, the Parliament adopted the new reform of the State Property Fund allowing the following operations:
- Primary Public Placement (IPO) for state companies;
- privatization of state companies, for which indebtedness exceeds 50% of assets.
Draft Law № 5798 that will reward for video fixation of accidents.
On July 16th, the Verkhovna Rada registered the Draft Law according to which witnesses of wrongdoings can receive a 10% reward via Dija. The Government application will allow photo and video fixation of wrongdoings.
Draft Law №5600 about Real estate VAT & Land Tax.
Even though it was sent to refinement, this Draft Law was one of the hottest discussions this summer as it will introduce several changes for:
- Real estate owners (18% Tax on sale instead of 5%)
- Agricultural owners (new tax – Minimum tax liability)
- Accountants (past year losses will be repaid gradually, no more than 50% per year).
For further information on how you or your business can prepare for the new standards or to discuss your potential actions, please contact our Kyiv Tax and Legal Department at kyiv@eurofast.eu.
Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South-East Europe & the Middle East . The Organisation is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Audit – Advisory & Corporate.
Tax & Legal Associate
Eurofast Kyiv
kyiv@eurofast.eu