Wonderful News
On the 20 March 1997 a new framework law on the System of Taxation dated 18 February 1997 came into effect replacing the previous law dated 2 February 1994.
The following taxes are to be cancelled with effect from 20 March 1997:
- Road Tax
- Employment Fund charge
- Labour Protection Fund charge
- Tax on sales of imported goods
Any debt in respect of these taxes/charges is to be cancelled and therefore no further payments are mandatory. However, article 16 of the law allows voluntary payments of charges that are no longer specified by the law.
For your information we list below national and local taxes which are preserved by the new law.
NATIONAL TAXES AND CHARGES
1. Value added tax 2. Excise tax 3. Corporation profit tax 4. Individual income tax 5. Import duty 6. Stamp duty 7. Real estate tax 8. Land tax 9. Royalty on oil and gas extraction 10. Tax on owners of motor vehicles 11. Tax on non-regular trade at the "flea market" 12. Geology charge 13. Charge for exploitation of natural resources 14. Environment pollution charge 15. Chernobyl Fund charge 16. Compulsory Social Insurance charge 17. State Pension Insurance charge 18. Innovation Fund charge 19. Charge for retail trade patent
LOCAL TAXES AND CHARGES
Under the new law local taxes include advertising tax and municipal tax. In addition, there are the following local charges:
1. Hotel charge
2. Charge on car parking
3. Charge for market trading
4. Charge for issue of apartment certificate
5. Resort charge
6. Charge on participation in horse racing
7. Charge on winnings from horse racing
8. Charge on bookmakers involved in horse racingactivities
9. Charge for use of local symbols
10. Charge for issuing permission for TV and film making
11. Charge on local auctions, tenders, and lotteries
12. Border transport toll
13. Charge for issuing a licence for establishing a retail sale/
service point
14. Charge on dog's owners
It must be noted that only a few of these charges are applicable to business entities.
In accordance with article 1 of the new law any tax/charges other than listed above are not subject to payment.
(Law of Ukraine "On Amending The Law on the System of Taxation" dated 18 February 1997)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Vladimir Didenko on +(380) 44 244 5478/9 or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.
