Draft Law of Ukraine

"On Amendment of the Law of Ukraine "On Enterprise Profit Tax"

The draft envisages excluding from sub-clause 5.4.6 of clause 5.4 of Article 5 of the Law of Ukraine "On Enterprise Profit Tax" the norm related to including expenditures on insuring commercial risks into gross expenditures (of a taxpayer).

After the draft is approved, gross expenditures of a taxpayer may include expenditures on insuring the following types of risks:

• insurance of risks in case of poor crops;
• insurance of transportation of a taxpayer's products;
• insurance of civil responsibility related to use of transport means, which are included into capital assets of a taxpayer;
• insurance of ecological and nuclear damage, which may be incurred by a taxpayer to other entities;
• insurance of a taxpayer's property;
• insurance of a taxpayer's credit risks.

The draft, if approved, will determine a precise list of expenditures on insurance of risks, which may be included into the list of a taxpayer's gross expenditures.