Representatives of the STS and Union of Ukrainian Entrepreneurs discussed legislative innovations in the tax sphere

Press service of the State Tax Service of Ukraine, published 19 August 2020 at 15:15 Chapter: News

Chairman of the State Tax Service of Ukraine Oleksiy Lyubchenko held a working meeting with representatives of the Union of Ukrainian Entrepreneurs – Executive Director Kateryna Glazkova, Expert of the Analytical Center Myroslav Laba, PR Manager Lesya Prymakova, Chairman of the Industry and Infrastructure Committee Gennady Radchenko. Participants discussed implementation of tax reforms.

According to Chairman of the STS Oleksiy Lyubchenko, this year has been full of changes in tax legislation. Specifically, the Law № 466 was adopted which amended almost all segments of the Service’s activity. In addition, there are ongoing measures aimed at implementing legislative norms on the implementation of software RCOs, which have already been in force since the 1^st of August, new rules for settlement operations, simplification of the work for individuals – entrepreneurs, improvement of the Electronic cabinet, etc.

At the same time, tax specialists are working on major institutional reform which involves introduction of a single legal entity.

“We changed approaches in work and determined priorities. Significant efforts were made to destroy tax evasion schemes in May. As of today, the “scroll” concept has virtually ceased to exist and we were able to provide the budget with additional funds” – stated Oleksiy Lyubchenko. 

Chairman of the STS noted that important role in the destruction of schemes for the formation of fictitious tax credit and tax evasion belongs to the risk monitoring system. At present, the STS continues to work actively to improve system in order to avoid stopping registration of tax invoices and real business adjustment calculations.

Representatives of the UUE were also interested in the possibility of legislative changes in the taxation of wages, particularly, the reduction of single social contribution rate.

Thus, according to Oleksiy Lyubchenko, the State Tax Service supports reducing tax burden on the legal remuneration fund. Instead, these funds can be offset by increased control over those revenues that are in the shadows, ie by taxing foreign revenues that are imported either in extremely large amounts or through minimization schemes, as well as income from property rentals.

Functioning of software registrars of calculated operations and introduction of the “cashback” mechanism were also discussed during the meeting. Representatives of the UUE informed about technical issues of software RCOs. In turn, the tax authorities emphasized that they are interested in receiving feedback from business entities that work with software RCOs to improve their work.

Oleksiy Lyubchenko also stated that the Tax Service works in quarantine conditions in compliance with all legal requirements. Tax authorities do not conduct audits, as a moratorium has been announced, except for audits on the VAT reimbursement and actual audits in terms of excise products turnover. Explanatory work with taxpayers on the possibility of obtaining electronic services was intensified, etc.

According to him, the STS is actively working on the possibility of providing taxpayers with maximum number of services remotely, in the electronic form. Functionality of the Electronic cabinet is constantly updated. As follows, due to the latest legislative changes, taxpayers will be able to view tax notifications –decisions issued by regulatory authorities in the Electronic cabinet.

Introduction of tax on withdrawn capital was also topic for discussion. Oleksiy Lyubchenko noted that without the macro-forecasting effectiveness of this tax introduction, it is not time to talk about the possibilities of its application in Ukrainian realities. Moreover, according to Chairman of the STS, it is necessary to calculate compensatory mechanisms to eliminate risks and to ensure the completeness of budget revenues before the operation of such tax and analyze its real economic effect.