Private International Commercial & Industrial Financing Consultants

Since 1 January 2011 there has been a new Tax Code in the Ukraine.

These new regulations changed significantly the rules governing taxation of non-residents. The new rules were aimed at blocking tax minimization schemes with involvement of foreign structures and holdings, which were commonly used by Ukrainian businesses, so it seemed to be a black day for those who had utilised the old rules to their great benefit. Additionally, the new rules contribute to clarifying flows of funds outside Ukraine. Meanwhile, a lot of companies with foreign investments, Ukrainian subsidiaries of foreign companies, as well as purely national companies working with foreign partners were obliged to change their usual ways of doing business, in order to adapt to the new rules.

But there are, in fact, some benefits for the outside entrepreneur. The Tax Code introduced favorable regulations for a number of industries. For example, until 1 January 2021, hotels (3, 4 and 5 stars), as well as electricity and light industry companies, shipbuilding and aircraft companies are simply released from corporate income tax. Further, until 1 January 2016, companies with an income not exceeding UAH 3 million per annum, and whose staff numbers not more than 25 employees, are not subject to corporate income tax at all. There are a number of other benefits and privileges, which are given to companies, which provide services in the area of information technology. All this opens a wide range of investment possibilities in the Ukraine, as well as a friendly place to situate a company for business.