Draft Law of Ukraine

"On Taxation Privileges for Legal Entities"

This draft envisages systematization and unification in one law of all taxation privileges enjoyed by legal entities.

According to this draft law the Verkhovna Rada of Ukraine, Verkhovna Rada of the Autonomous Republic of Crimea and rural, township and city radas may introduce and cancel taxation privileges for natural persons and legal entities with regard to taxes and duties paid to budgets and state purpose funds in accordance with this draft Law, other taxation laws of Ukraine.

Amendments to taxation laws of Ukraine relating to granting privileges therein shall be introduced no later than six months before the new fiscal year and shall come into force at the beginning of a new fiscal year. This rule shall not apply in the events of canceling taxation privileges.

This draft defines taxation privileges for legal entities engaged in separate sectors and branches of economy.

For example, enterprises performing scientific and research and restoration activities in the area of protection of cultural heritage will tax their profits at the rate of 50 percent of the current tax rate and shall be exempted from land tax. The same way privileges are provide for educational institutions, library sector, as well as for such fields as science, health care, social protection, physical training and sport etc.

Taxation privileges are also granted to enterprises of agriculture complex, fuel and energy complex, automobile transportation, railway transportation, mining and metallurgy branches etc.