What is new in tax legislation? The financial monitoring experts of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme and SKL International) analysed the Law of Ukraine No. 2628 “On Amendments to the Tax Code of Ukraine and Some Other Legislative Acts of Ukraine on Improvement of the Administering and Revision of Rates of Certain Taxes and Fees” dated 23 November 2018, and highlighted those changes that will affect the implementation of the revenue part of local budgets in 2019.

1. One of the novelties is supplementation of Article 12 of the Tax Code, which states that the controlling bodies in accordance with the Budget Code of Ukraine submit to the local self-government bodies reporting in the context of revenue sources

• on the amount of the accrued and paid taxes and fees, the amount of tax debt and excessively paid taxes and fees to local budgets on the respective territories – on a monthly basis, no later than the 10th day of the month following the reporting one;
• on the amount of written off tax debt; instalment and deferred amounts of tax debt and monetary obligations of taxpayers; the amount of tax benefits provided, including loss of budget revenues from their provision – quarterly, no later than 25 days after the end of the reporting quarter.

2. The tax base is expanded and a differentiated approach to the payment of tourist fees is provided.

3. The provision of clause 284.4 of Article 284 of the Code for the levying of land payment in the amount of 25% of the tax on land plots, provided to railways within the railroad precincts, was abolished.

4. The norm envisaged in paragraph 3 of the Final and Transitional Provisions of the Law of Ukraine No. 2245 “On Amendments to the Tax Code of Ukraine and Certain Legislative Acts of Ukraine Regarding the Balance of Budget Revenues in 2018” dated 07.12.2017 concerning permission granting to local councils to establish local taxes and fees without observing the time limits defined by the Tax Code, as well as without complying with the requirements of the Law of Ukraine “On Principles of State Regulatory Policy in the Sphere of Economic Activity” was not prolonged for 2019.

The materials were prepared by the financial monitoring experts of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme and SKL International).

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