Draft Law of Ukraine

"On Amendment and Addition of Some Laws of Ukraine Related to Taxation Due to Approval of the Law of Ukraine "On Non-Governmental Pension Provision"

The draft is an alternative to draft laws N 4485 and N 4034 , which determine the basis for taxing subjects of non-governmental pension provision.

The draft envisages:

• permitting payers of enterprise profit tax to decrease the amount of taxable income by the amount of fees for non-governmental pension provision of their employees, however the amount should not exceed 15% of their expenditures on their employees' salaries;
• exempting from taxation with value added tax services on pension provision rendered by non-governmental pension funds and of administrators of non-governmental pension funds;
• not including into the general monthly taxable income of a natural person fees for non-governmental pension provision, paid in their favor by any entity.

The draft also suggests including pension fees for non-governmental pension provision into the list of assets, which can not be used as a source for repaying tax debts or used in tax pledge.