The Verkhovna Rada of Ukraine plans to postpone voting on the tax hike bill until October 2024, and the document itself has undergone significant changes, reports Komersant ukrainskyi
reports with reference to Forbes.
According to the publication, the concept of the draft law has undergone significant changes following consultations between the government, MPs and business representatives.
Key changes in the updated draft law:
- Instead of introducing a 1% tax on turnover for legal entities, it is proposed to increase VAT by 3-4 percentage points to 23-24%.
- Instead of an upfront tax on fuel storage capacities, it is planned to introduce a fixed monthly payment of UAH 60,000 for each facility.
The proposal to increase the military tax for individuals and individual entrepreneurs remains unchanged.
According to MPs from the economic and financial bloc, the new tax rules are likely to come into force on 1 October 2024.
What taxes are likely to be introduced and increased starting from October this year
- increase in the military tax rate on income defined in Article 163 of the Tax Code to 5% (currently 1.5%);
- establishing the obligation of legal entities to pay the military fee in the amount of 1% of income from any activity for corporate income tax payers and single tax payers of groups 3 and 4;
- establishing the obligation to pay a military fee of 5% based on two minimum wages per month by individual entrepreneurs and single tax payers of the first, second and fourth groups;
- establishing the obligation to pay the military fee in the amount of 1% of the income of individual entrepreneurs by single tax payers of the third group;
- establishing the obligation to pay a military tax of 5% of the value of precious metals by legal entities and individuals who purchase precious metals from banks;
- establishing the obligation to pay a military duty of 30% of the value of jewellery sold by enterprises, institutions and organisations and individual entrepreneurs engaged in retail trade in gold, platinum and precious stones (including those made from tolling);
- establishing the obligation to pay military duty in the amount of 15% of the value of acquired movable property by enterprises, institutions and organisations, individuals who acquire ownership of passenger cars subject to the first state registration in Ukraine by the territorial bodies of the Ministry of Internal Affairs, except in cases of providing passenger cars to persons with disabilities in accordance with the law;
- establishing the obligation to pay military duty in the amount of 5% of the income from the sale of real estate by individuals who sold one real estate object during the reporting tax year;
- establishing the obligation to pay a military duty of 5% by electronic communication service providers that provide mobile communication services, paid by end users of such services;
- establishing a specific excise tax rate of EUR 0.1 per litre of fuel.