Legal norms for small and middle enterprises

Ukraine’s new tax code entered into force on Jan. 1. Over the first two weeks of the year, the government issued a number of regulations on the implementation of this document. In addition, the Finance Ministry and State Tax Administration have expressed a number of opinions via the Internet on how the new tax rules should be interpreted. These two authorities have recently announced that they have issued their interpretations of the tax code – running to three volumes – but they remain unpublished.

The tax code offers a number of tax-planning opportunities and tax incentives that depend on particular industries and activities, though no general tax incentives are offered to foreign investments. Several areas that were unclear in the previously-existing tax legislation or that had been constantly challenged by the tax authorities, now represent tax-planning opportunities for many transparent international businesses.
These include the restructuring headquarters charges, including secondment of foreign personnel to Ukraine; the structuring of an international presence in Ukraine in accordance with new permanent establishment rules; and preparation for the enactment of new transfer pricing rules in 2013.
There are many comments from the business community on substantial limitations of tax deductions for businesses, including restrictions on royalties and a number of services paid by Ukrainian businesses to foreign entities. Still, a proper transparent structuring of such fees will provide for their tax deductibility in Ukraine.

Read more here: http://www.un.org