Tax reform has started in Ukraine

Law of Ukraine as of 15.03.2022 № 2120-IX “On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine concerning the effect of norms for the martial law period” has been officially published.

Law for the martial law period provides for:

- right to apply the simplified taxation system of Group III at the 2% rate by economic entities with an annual income of up to 10 billion UAH and without limiting number of employees;

- voluntary payment of the single tax by taxpayers of Groups I – II.

Also the following has been improved:

- norms on the VAT exemption in case of provision of products in favor of the Armed Forces and territorial defense;

- rules on the absence of adjustments to income tax on operations for free provision of products / funds. In particular, health care facilities and civil defense forces have been added.

This Law enters into force on the day of its official publication.

Text of the Law can be found at the following link: https://tax.gov.ua/zakonodavstvo/podatkove-zakonodavstvo/zakoni-ukraini/77303.html