Institutional reform of the STS is carried out taking into account recommendations of the IMF experts

At present, the STS cooperates with Technical Mission of the International Monetary Fund headed by Enrico Aav on the implementation of reform of the tax system of Ukraine for its complete reformatting.

As follows, there is ongoing work with the IMF experts on practical implementation of a single legal entity project which was recommended by the FAD mission in November 2019. New status will allow the Tax Service to function as a single mechanism with a single decision-making center. STS territorial bodies will no longer have a separate status of a legal entity but will be formed as separate subdivisions of the State Tax Service. This will improve work in regions and minimize corruption, as a new decision-making system will be built in terms of functional subordination and direction.

Final model of reformed service is discussed, key goals and objectives are identified during the videoconference meetings with representatives of the IMF working groups and experts. New mission of the State Tax Service has already been determined, as well as an Action Plan for the implementation of strategic goals of the State Tax Service until 2022 has been developed and indicators for the implementation of measures have been determined.

According to Chairman of the State Tax Service of Ukraine Oleksiy Lyubchenko, the institutional reform must culminate creation of efficient, effective and functional service capable of performing the most complex tasks with a strong analytical component.

Introduction of a single legal entity is carried out in two stages. Priority steps were taken to implement the legislative norms as part of the first stage. Functional structure of the State Tax Service was put into operation which provides for a clear division of powers between the STS structural units in order to avoid duplication and brought into line with the structure of territorial bodies. There was ensured creation of 532 state tax inspections which are structural units of the State Tax Service in regions and Kyiv city, as well as provision of administrative services to local communities and amendments to Regulations on the State Tax Service and approval of new versions of Regulations on its territorial bodies.

Legal acts, organizational and administrative documents on functioning of the State Tax Service within a single legal entity will be approved during implementation of the second stage of tax reform.