Representatives of the Ministry of Finance of Ukraine and State Tax Service of Ukraine announced that the country will align its tax legislation with OECD standards.
Representatives of Ukraine at the invitation of the Organisation for Economic Cooperation and Development (OECD) took part in meetings with leadership of the Center for tax policy and administration, as well as with the OECD experts.
Meetings were aimed at discussing matters related to the further improvement of the transfer pricing rules, implementation of rules for countering tax evasion practices that have direct impact on functioning of the EU and Ukrainian market, taking into account provisions of the OECD Council Recommendations on tax measures to further combat bribery of foreign officials in the international business operations.
During the event, directions for further cooperation with the OECD in terms of bringing elements of tax legislation and policy of Ukraine into compliance with the main OECD standards in international taxation were also discussed.
Global initiatives of the OECD in international taxation, Pillar One and Pillar Two are primarily aimed at improving existing mechanisms for combating erosion of tax base and removal of profits from taxation.
In addition, within the framework of the programme, the Ukrainian delegation took part in the signing ceremony of the Multilateral instrument on the implementation of the controlled tax rate rule, which is part of Pillar Two (Subject to Tax Rule (STTR)).
During the ceremony, it was announced the intention to complete all domestic procedures necessary to join this Multilateral Agreement, as implementation of Pillar Two is a priority direction of the National Revenue Strategy until 2030, approved by Order of the Cabinet of Ministers of Ukraine № 1218-r as of 27 December 2023.
Ukraine’s accession to the STTR Multilateral Agreement will allow Ukraine to revise international agreements on the avoidance of double taxation in terms of adding them with a separate article “Subject-to-Tax Rule”.
