The State Fiscal Service of Ukraine has released a report stating that the law on tax compromise took effect on January 17, 2015. This law concerns the voluntary revision of unpaid tax liabilities by payers of profit tax and value added tax (VAT). Under the provisions of the law the taxpayer pays 5% of the outstanding liabilities in settlement.
According to the law, the total duration of the procedure for reaching tax compromise totals 70 calendar days from the day on which a revision report is submitted. The total term during which taxpayers can decide to apply for the tax compromise procedure is 90 calendar days from the time the law takes effect. During this period taxpayers can file a report on the revision of tax liabilities relating to the profit tax of companies and/or VAT for any tax periods before April 1, 2014.
The adjusted transactions for the periods where the tax compromise is applied will not be changed by taxpayers in the future and supervisory agencies will not review or audit them.
