“Amendments to Amendments”: What has been in Force since 1 January 2014 ~ U-Tax Blog

Thursday, January 23, 2014

“Amendments to Amendments”: What has been in Force since 1 January 2014

In the post of 3 December 2013, it was already talked of the tax novelties taking effect from 1 January 2014.

The Parliament of Ukraine did not avoid the temptation of changing many of them by its Act of 19 December 2013 “On Amending Tax Code of Ukraine in Relation to Some Tax Rates”. What follows is a brief account of the pivotal changes brought by the said Act:

- The VAT rate in 2014 remains at 20%, the rate reduction to 17% was postponed to 2015;

- The corporate income tax rate in 2014 is reduced to 18%, rather than to 16%, as was previously set out. In 2016 the tax rate will amount to 17% and finally in 2017 will constitute 16%;

- The VAT exemption for scrap metals and wood (certain items) was extended until the end of 2014;

- The VAT exemption in respect of supplies and exports of certain cereals (save for those made by producers and first-tier intermediaries) which was intended to cease on 1 January 2014, became permanent;

- А ban for 2014 on the utilization of securities-related losses accounted for as at 1 January of this year;

- Outlawing an excise duty avoidance scheme involving the import of exempt cargo vans into Ukraine with their further rearrangement into the cars.

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