On 30 August 2019, the Ukraine has submitted draft law no. 1210 to the Parliament amending the Tax Code on improving tax administration, removing technical and logical mismatches in the tax legislation. The three main areas of the draft law are:

  • increase administrative pressure and punishment in the administration system;
  • increase tax burden; and
  • increase the time and costs of taxpayers in adhering to new administration procedures.

Moreover, the draft law also covers the following areas:

  • covers all of the BEPS measures including multinational collaboration to eliminate double taxation and tax evasion;
  • covers legal issues of permanent establishment status. Generally companies pay tax in a certain jurisdiction if they have a permanent establishment there;
  • introduces a new term into current legislation of Controlled Foreign Company (CFC), where a company is incorporated outside Ukraine, but is legally controlled by a resident of Ukraine; and
  • regulates issues of transfer pricing, establishes new legal terms and legal regimes such as Multinational Enterprises (MNEs) and MNE group.