The Cabinet of Ministers of Ukraine approved a draft budget for 2016 and amendments to the Tax Code on December 10, 2015. The amendments were submitted to the Parliament on December 11, 2015.
The Cabinet of Ministers approved a compromise on tax rates previously agreed with the president. New tax rates may take effect from 1 January 2016. The corporate income tax and individual income tax rates are decreased to 18%. The rates will be further decreased to 17% in 2017. Advanced corporate income tax payments are abolished. The value added tax (VAT) will be 20% while the preferential tax rate on medications will be maintained at 7%; the Single Contribution will be 20%; and from 2018 the tax burden on the payroll will be 20%.
