On 30 November 2021, the Verkhovna Rada adopted Law “On Amendments to the Tax Code of Ukraine and Certain Legislative Acts of Ukraine to Balance Budget Revenues” (Draft Law No. 5600), which concerns general issues of administration of corporate income tax, personal income tax, VAT, excise and environmental taxes, rents, land charges, and terms of the simplified taxation system.

Major innovations:

• In case of non-payment of a tax debt (over UAH 1 million) within 240 calendar days, the tax authority may apply to court for imposing a temporary restriction on departure of the head of a non-resident debtor’s legal entity/permanent representative office from Ukraine;
• Provision is made for the introduction of the Register of executives of taxpayer debtors;
• Tax authorities have a duty to disclose information on debtors-individuals to local authorities;
• The right to openly make sound, photo and video recordings during audits and to use such recordings as a basis for the opinions of the audit report (both for the taxpayer and the representatives of the controlling authorities) has been enshrined;
• Changes in corporate income tax administration: the mechanism for writing off losses to large income tax payers has been updated; income of poultry producers has been exempted from taxation;
• Update of VAT administration: the deadlines for inclusion in the tax credit of registered tax invoices to 365 calendar days have been changed, second and subsequent supplies of tobacco products, tobacco and industrial tobacco substitutes, liquids used in e-cigarettes, for which maximum retail prices are set, are exempt from VAT;
• Changes in the administration of personal income tax: the rules for personal income tax on the sale of real estate and agricultural land have been updated;
• Changed regulations on the issuance/nullification of licences for the production of excisable goods, including the production and circulation of alcohol, alcoholic beverages, tobacco products and liquids used in e-cigarettes.