To eliminate those whom Coronacris had not killed?

[ad_1]

It is understood that the law amending the Tax Code No. 1210 discussed why

Photo: medium.com

On 21 May, the President of Ukraine signed Verkhovna Rada on January 16, 2020, adopting legislation on amendments to tax code number 1210, which caused heated debate. Many entrepreneurs and experts are sure that the law will give an irreparable blow to business in Ukraine. Are innovations spelled out in laws? And what caused the first discontent among startups? Let’s find out.

In January, the factions “servant of the people”, BYuT and “Golos” voted unanimously for the bill. At the same time, all major trading organizations and associations of Ukraine’s foreign investors were clearly against, including the European Business Association, the American Chamber of Commerce, the Ukrainian Union of Industrialists and Entrepreneurs, the Ukrainian Federation of Employers and many others. This could serve as a sign for Vladimir Zelensky not to sign a blasphemous bill. However, four months later, it still happened.

First, the law introduces sophisticated tax control instruments, such as business goals, constructive dividends, the availability of tax benefits from the application of international conditions, a controlled foreign company. Furthermore, the effect of the introduction of such a mechanism has not been calculated. Experts say that the introduction of such sophisticated instruments in front of lower levels of government at the level of regulatory bodies threatens to worsen the business situation. And it negatively affects the level of investment in the Ukrainian economy.

Now in more detail. A controlled foreign company is a company in which Ukraine is resident:

  • Owns a stake in a foreign legal entity in an amount not exceeding 50%, or
  • Owns a stake in an amount of more than 10% in a foreign legal entity, provided that many individuals and / or legal entities of the residents of Ukraine own shares in a foreign legal entity, the total amount of which exceeds 50%, or
  • Separate with other residents of parties belonging to Ukraine or have actual control over a foreign legal entity.

The authors of the 1210 bill tried to control lovers of offshore ventures. But along the way, another type of company was hurt: a startup founded by Ukrainians in its early stages. These entrepreneurs very often registered the company in countries with good business conditions and low levels of corruption, but were physically located in Ukraine, employed people, paid taxes and participated in the development of the country. Now he is very likely to leave Ukraine.


Sergey Shelpuk (from author’s publication on Facebook)
Co-founder and CEO of DePret

Back in the bill. Now, people associated with a controlled foreign company must inform the company about the Ukrainian tax. Along with filing an annual tax return, it is also necessary to file a company’s financial report in an international format, even if the company’s jurisdiction does not require the preparation of such a report.

Entrepreneurs have to pay tax (in Ukraine) if the turnover of the company exceeds 2 million euros. Furthermore, if the company does not pay any dividends and reinvests all income (as startups do in the initial stage), the Ukrainian resident will still have to pay tax on this income.

As for the fine, the late submission of a company report for Ukrainian tax penalties will amount to 4 million UAH. Failure to register a company – 2 million UAH. Then, the penalty is imposed on the person and not the company.


Nikita Naish (from the author’s post on Facebook)
Founder, CEO of Protectmaster at HackControl

The law also states that a resident of Ukraine is exempt from paying taxes (but not from submitting reports) if a double taxation treaty is concluded between the company and the country of Ukraine’s jurisdiction, and if it Jurisdiction is not included in the Cabinet approved lower tax list.

We also note that STS, by law, acquires the right to interpret rules of law and circumstances, as well as determine the presence of a crime in the actions of a taxpayer. And this has greatly increased the chances of corruption of financial officers. In addition, the powers of the tax authorities will be increased during inspections.

The community’s response was not long in coming. We have collected only a few assessments of controversial Bill No. 1210 entrepreneurs and representatives of the business community.

Bad news, startup friends. The President signed Bill 1210.

Bill [1] Accepted back in January. behind…

Posted by Sergey Shellpuk Thursday, May 21, 2020

1210 – Apparently in the style of Getmentssev Idiot.
Zelensky, who is already looking at the ratings looking at the results…
but…

Posted by Igor Palmarchuk Monday, May 25, 2020

He brought a new law – # 1210 “- now there is no point in developing business in Ukraine. At first, it was legally …

Posted by Nikita Nesheim Sunday is May 24, 2020

The 1210 sign is the tin and murder of a business. If it is, of course, signed in the form that was on BP’s website. Most of the countries implementing BEPS have a rest …

Published by Alexander Meadowoie Thursday, May 21, 2020

I will write a traitor.
There is nothing wrong with the new law. The bad thing is that it was signed five years before necessary (and again, …

Posted by Denis Dovgopolim Friday May 22, 2020

According to many experts, the instruments introduced by the Bill on amendment to Bill Code No. 1210 will not be able to affect the increase in tax revenue in the budget. But, at the same time, they will put pressure on the business, which is due to a coronary crisis in already difficult circumstances.

Further investigation: Ways to do the dirty work: Why the situation with TOP credit worries us all


[ad_2]
Source link

Leave a Reply