ukraine


Ukraine Planning To Ease Regulatory Burden

Posted on September 12th, by Global Tax Weekly in Corporation Tax, Trade. No Comments

It’s quite a feat on the tax front that war-torn Ukraine has a substantially better tax system than Brazil, according to Paying Taxes. But at 107th in the league table, it is an understatement to suggest that there is still ample room for improvement. But, unlike Brazil, Ukraine is at least making an attempt to remedy the problem. The launch of a public consultation on the state of the tax system, intended to supply the Government with ideas on how things¬†can be improved, is the latest in a number of recent initiatives designed to ease the country’s tax and regulatory burden. Other examples include the launch of a new customs management system earlier this month, the creation of an expert working group on tax reform in June, and the approval of draft tax administrative reforms in April, aimed at bringing … Read More »


Bread-Basket To Basket-Case

Posted on July 27th, by Global Tax Weekly in Individual Taxation, Tax Avoidance, Trade. No Comments

It used to be known as the bread basket of the Soviet Union. Now Ukraine is more like the economic basket case of Europe. What’s happening in the east of Ukraine right now is truly tragic. But leaving aside that ethnic conflict, the other tragedy is that things ought to have turned out so much better. When Ukraine gained independence from the Soviet Union, it was generating one-quarter of the USSR’s agricultural output while its diversified industrial sector was one of the bloc’s main workshops. But instead of building on this base, successive governments seem to have squandered Ukraine’s economic potential to the point where it has probably gone backwards rather than forwards. A huge problem is that corruption is rife and pervades the public and private sector at all levels. Surviving as a business very much depends on who … Read More »


Winter Games

Posted on February 3rd, by Global Tax Weekly in Individual Taxation, Real Estate. No Comments

It’s easy to have a go at Russia this week, and almost everyone is doing it, between its cack-handed attempts to influence Ukrainian affairs and the giant, gilded hostage to fortune represented by the Sochi games which are close to turning Vladimir Putin into a laughing stock. So here is a rare bouquet for the Economic Development Ministry, which has sensibly proposed to reduce the rate of tax imposed on people who rent out their apartments. Well, perhaps it is sensible, and perhaps not. It sounds good, but if as they say 95 percent of private landlords are evading the 13 percent income tax that should apply right now, why would a reduction to 12 percent or 11 percent make any difference? Even if the rate was reduced to 5 percent, no-one will pay it, because paying it involves declaring … Read More »


Cyprus Keeps Punching

Posted on January 6th, by Global Tax Weekly in International Taxation, Offshore, Real Estate. No Comments

Cyprus has put five new double tax agreements into effect, including, importantly, one with the Ukraine, which includes beneficial treatment for real estate owned through a Cyprus holding company. The country’s DTA with Russia used to include such treatment, but the Protocol signed a year ago imposed limits on real estate holding companies, albeit only coming into effect in 2017. Although Cyprus has come in for a great deal of negative publicity since the “bail-in” imposed on bank depositors by the Troika earlier in 2013, it maintains an extremely tax-friendly environment for international holding companies, and double tax treaties are a key element of this regime, along with its 12.5 percent corporation tax rate and favorable rules on dividends and royalties. As a tax-friendly hub for investment into the European Union, Cyprus ranks alongside Ireland and Malta. Although the Government … Read More »





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