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Tax Amnesty launch
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%).
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