Finance Ministry represents concept of introducing special conditions for profit taxation

Finance Ministry represents concept of introducing special conditions for profit taxation

Ukrinform
The Finance Ministry has represented the concept of introducing special conditions for corporate income taxation.

The ministry’s press service reported following a meeting with representatives of business associations.

“The Concept of introducing special taxation conditions for corporate income tax has been represented,” reads the statement.

It notes that Parliament is considering the bills on the introduction of tax on withdrawn capital. According to the ministry, this is an important initiative, which has advantages for both business and the state, but at the same time carries risks.

The key risk is significant budget losses in the early years of the introduction of tax on withdrawn capital. According to preliminary estimates, the introduction of this model from 2021 may lead to direct budget losses in the short term, at least in the amount totaling about UAH 53 billion.

According to expert estimates, the amount of loss of corporate income tax in the case of introducing special taxation conditions may total about UAH 1 billion during the first year, but on the other hand, this will provide additional incentives for business development and will not affect the budget so much.

As reported, the Finance Ministry published on its website the text of the bill "On amendments to the Tax Code of Ukraine regarding the specifics of taxation of corporate income tax”.

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