News

As every year, measures are being continued to ensure a tax system that adequately responds to the development dynamics of the country's economy for the next year. Certain projects and proposals related to additions and changes to the Tax Code are already under discussion. We bring to your attention some important changes announced by the State Tax Service:

• If the VAT amount is paid within one working day from the day of payment of the value of the goods (works and services) by the taxpayer, it will not cause any liability (i.e. application of financial sanction);

• The requirement to obtain a certificate-duplicate from the tax authority for opening an account in a resident bank will be eliminated;

• Along with taxpayers who are active in the oil and gas field or belong to the public sector, taxpayers who use the "Green Corridor" release system will also be exempted from providing information about goods to be imported;

• Residents of the liberated territory will be exempted from profit (income), property, land and simplified tax for 10 years from January 1, 2023.

• Based on the issued confirmation document, the import of raw materials and materials for production activities by the residents of the territory freed from occupation registered for the purposes of VAT will be exempted from VAT for a period of 10 years from January 1, 2023.

• It is intended to charge VAT at the rate of zero (0) percent for passenger and cargo transportation to the liberated territories, from those territories to other regions of the country, as well as within these territories by air and rail transport.

• Dividend income of shareholders (shareholders) of legal entities resident in the liberated territory will be exempt from tax for 10 years from January 1, 2023.

• Tax payers engaged in the production of agricultural products (including by industrial method) on the incomes obtained from this activity for a period of 10 years from January 1, 2014, and also state taxes related to their non-sale income and the production of agricultural products subsidies given at the expense of the budget have also been added.

• Starting from January 1, 2023, it is planned to reduce the amount of excise duty to be paid to the budget by 50% for the period of 3 years during the import of hybrid cars with a production date of lower than 3 years and an engine volume of no more than 2500 cm³.

Please note that the above are only proposed drafts and any changes are possible as a result of the discussions.