Ukraine's New Tax Law Debuts, with Tax Rates Lowest in Europe

As indicated by Ukrainian Premier, Ukraine's new draft law of tax has been formulated and will soon be submitted to the Parliament for its deliberation. As reported, the new tax-law will lead the tax rates of Ukraine to the lowest level in Europe.

The Premier said that, as per the new draft tax-law, the rate of business profit tax shall be 25% in 2010, and be reduced successively to 19% from 1 Jan. 2011, to 18% from 1 Jan. 2012, to 17% from 1 Jan. 2013, and to 16% from 1 Jan. 2014. Additionally, the exemption from 5-year profit tax shall be applied to small businesses with annual turnover less than USD 400,000, and that from 10-year profit tax shall be applied to the hotel industry and the light industry.

As reported, the new draft tax-law contains new categories of taxes such as tourist tax, real-estate tax, and high-salary tax; but abolishes some taxes and fees in current law, such as marketing fees.