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Tax Amnesty launch

26 Jan 2015

As the Tax Amnesty law was passed 17 January 2015, the final details of the Ukrainian Tax Amnesty Programme have become public. Taxand Ukraine takes a look at the key features.

Which taxes and violations are covered? 
The amnesty covers Corporate Profit Tax (tax deductions only) and VAT (input VAT only).  Other taxes (e.g. payroll taxes, land taxes), as well as other CPT or VAT violations (underreporting income or output VAT) are outside the scope

Who is eligible? 
Persons (businesses) willing to make voluntary disclosure for past periods and pay part of the tax due, may apply for amnesty

When is the application deadline? 
The timeline for applications is from 17 January 2015 until 17 April 2015 (90 days)

How much additional tax shall be paid?
The applying taxpayer shall pay 5% of either: 

  • the amount of tax indicated in taxpayer’s application for voluntary disclosure (adjustment), or  
  • the amount assessed during audit conducted within amnesty proceedings. 

The remaining 95% of additional tax are deemed settled with no interest and penalties. The burden is significantly less, compared to standard amounts payable during voluntary adjustments (100% of tax + 3-5% penalty) or assessment by tax office (100% of tax + penalty of up to 50%). 

Discover more: Ukrainian Tax Amnesty Programme

Your contact for further queries is:
Roman Stepanenko
T. +38 044 492 8282

Quality tax advice, globally

Taxand's Take

Ukrainian businesses who wish to participate in the Tax Amnesty Programme are advised to: 

  • review their past operations to determine transactions with high level of tax risks
  • verify whether criteria for relief are met

Taxand's Take Author

Roman Stepanenko

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