Tackling Inconsistences in Preceding Laws and not Only ~ U-Tax Blog

Monday, April 28, 2014

Tackling Inconsistences in Preceding Laws and not Only

On April 8 and 10, 2014, the Verkhovna Rada adopted two Acts introducing amendments to the Tax Code of Ukraine:

- Act No. 1191-VII on the abolition of utilization tax for cars, and

- Act No. 1200-VII on the elimination of certain inconsistences in tax rules.

The Acts entered into force on April 18 and 19, 2014, respectively. The information on the main changes brought by these Acts is briefly presented below:


- The resolution of the problem surrounding the importation of medicinal products and medical devices. From now on, the clear provision is made for the application of the 7% rate to these transactions, just as for the domestic supplies*;

- An obligation on the bodies of the State Treasury Service to publish monthly the list of taxable persons given a tax refund (with an indication of the amount of the refund);

- The restriction of the scope of the exemption in respect of the importation of natural gas to the importations made by National Joint-Stock Company "Naftogaz of Ukraine" (restriction will take effect on September 1, 2014).


- Postponing the taxation of interest accrued to current and saving bank accounts to July 1, 2014;

- Postponing the taxation of dividends at a progressive tax rate of 15%, 20% and 25% to January 1, 2015. Dividends will be taxed at a flat rate of 5% by the end of 2014.


- Specific provisions on the application of a currency exchange rate in determining customs-related tax liabilities (the official currency rate set at 0 a.m. of the day on which a customs declaration is filed must be taken into account; if the customs declaration is not filed, it must be the day of the determination of tax liabilities);

- Transferring the effective date of the increased excise tax rates on alcohol and alcoholic beverages from September 1 to July 1, 2014;

- The abolition of utilization tax on cars;

- The revival of the exemption from excise taxation for trucks imported in Ukraine and subsequently reequipped to excisable motor cars.

*- The list of such medicinal products and medical devices was approved by the resolution of the Cabinet of Ministers of 23 April 2014 No 118.

** - Personal income tax

Photos from http://tyachiv.com.ua and http://www.vtormetlom.ru

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