On 24 December 2021, the State Tax Service (STS) has issued a press release providing the main provisions of the Law No. 1914 of 30 November 2021 “On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine to ensure the balance of budget revenues”. The Tax Code of Ukraine provides a number of changes that will come into force on 1 January 2022.
Provisions on corporate income tax
- state-owned enterprises and companies the authorized capital of which is more than 50% of shares belong to the state, which did not agree with owner or its authorized body on its accounting policy in determining methods for calculating amount of doubtful debt reserve coefficient of doubt, will not be able to write-off bad debts to reduce the taxation object;
- major taxpayers, starting from 2022, will have a right to reduce the taxation object by not more than 50% of the outstanding amount of negative value of taxation object of the previous tax (reporting) years;
- Adjustment of the financial result for the amount of non-repayable financial assistance is applied only by those payers who have included such assistance in expenses and provided it to a related party who has declared losses for the previous period;
- Profits of poultry producers (excluding chicken producers) are exempt from taxation until 1 January 2027; and
- It is established that until 1 January 2024, the tax liability of producers of “green energy” from income tax depends on the payment of shipped electricity.
