The Finance Ministry plans to impose a tax on the capital instead of income tax.
The Ministry of Finance of Ukraine has developed a bill introducing a tax on the capital instead of income tax.
This was reported by the press service of the Ministry.
“The Ministry of Finance together with business experts and people’s deputies has developed the draft law on the tax on the capital, which is planned to be introduced in lieu of income tax”, – stated in the message.
As noted, the Ministry of Finance held more than 20 meetings, where the participants had the opportunity to discuss and resolve disputed issues.
The next step involves assessing the impact of the provisions of the bill for admission to the state budget. Followed by coordination with other authorities and public discussion. Upon completion of the draft law will be submitted for consideration of the Cabinet.
As noted in the presentation to the document, the tax rate on the capital will amount to 15% at payment of dividends to legal entities – resident or physical persons. For compared with the dividend payment rate will be 20%.
Such payments include interest paid to non-residents – related entities; payments under insurance contracts or reinsurance contracts in favor of non-resident insurers; the payment of financial assistance to a defaulter of tax not refunded within 12 months; purchase of goods and services from related entities, applying the simplified system of taxation; accrual for transfer pricing; free provision of property to a defaulter of tax; investments in the authorized Fund of delinquent taxes; payment of royalty.
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