Ukraine returns pre-war taxes, Zelensky signs law

First deputy chairman of the Verkhovna Rada committee on finance, taxation and customs policy Yaroslav Zheleznyak reported this on Telegram, Ukrinform says.

"The President signed the tax bill No. 8401 (adopted by the parliament in the second reading on June 30 - ed.)," the statement reads.

The MP reminded that the adoption of this law is a condition stipulated by the agreement with the International Monetary Fund (IMF).

The adopted draft law provides for the abolition of the 2% single tax (ST) from August 1, 2023.

At the same time, the taxpayer will have the right to apply for refusal to apply the 2% ST, indicating which taxation system they wish to switch to. Without submitting such an application, and if the taxpayer does not indicate the preferred system in the application, they will be automatically transferred to the system they were in before choosing the 2% ST.

In addition, taxpayers who switched from the 2% ST to the general system in 2023 have the right to switch again in 2023 to the simplified system of their choice by applying. In this case, if the application is submitted before September 1, 2023, such a taxpayer will be considered a payer of ST from August 1, 2023.

The draft law also partially lifts the current moratorium on inspections of excisable goods (alcohol, tobacco, fuel), gambling and financial services, effective August 1. The moratorium on other tax audits, as well as documentary checks of the unified social tax, has been extended until the end of martial law.

As reported, the IMF will study the Law "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Peculiarities of Taxation during the Period of Martial Law", which provides for the return of pre-war tax legislation, to assess its compliance with the agreed strategy.