RESTRICTED
WORLD TRADE WT/ACC/UKR/32
25March 1997
ORGANIZATION(97-1229)
Original: English
ACCESSION OFUKRAINE
Communication from Ukraine
Thefollowing information concerning thetaxation system inUkraine hasbeenreceived from
theMinistry forForeign Economic Relations andTrade ofUkraine.
_______________
TAXATION SYSTEM INUKRAINE
What doestheverynotion of"tax" mean? Ataxisanobligatory payment made tothebudget
bylegalpersons (enterprises, organizations, agencies) andcitizens.
Alltaxes,fees,otherobligatorypaymentstobudgetsandcontributionstothestatespecial-purpose
funds constitute ataxation system.
Impositionandcancellationoftaxes,fees,otherobligatorypaymentstobudgetsandcontributions
tothestatespecial-purpose funds, aswellasofprivileges granted totaxpayers, arecarried outbythe
Supreme Council ofUkraine, theSupreme Council oftheAutonomous Republic ofCrimea andlocal
Councils ofpeople ’sdeputies.
Thestatetaxadministration shallregister andmaintain records oftaxpayers. Banks andother
lending institutions shallopenaccounts ofpayers oftaxes andother obligatory payments strictly on
condition thatsuchtaxpayers present documents thatprove theirbeing registered withthestatetax
administration, andwithin athree-day period shallnotify thestatetaxadministration about it.
Further weshallfrequently meettheconcept “object oftaxation, ”which makes itnecessary
todefine it.
Theobject oftaxation (onother words, what isbeing taxed) includes income (profit), the
added-value ofgoods orservices, value ofspecific goods, special useofnatural resources, property
ofjuridical andphysical persons. There existother objects oftaxation aswell.
Types oftaxes
Taxes administered inUkraine canbeeither stateorlocaltaxes.
Thestatetaxes include:
- value added tax;
- excise tax;
- corporate income (profit) tax;
- personal income tax;WT/ACC/UKR/32
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- customs duty;
- stateduty;
- enterprise property tax;
- personal immovable property tax;
- payment forland;
- taxonowners oftransport means andother self-propelled machines andmechanisms;
- self-employment tax;
- payments tocompensate forexpenses ongeological prospecting;
- payments foraspecial useofnatural resources;
- payments (fines) forenvironment pollution;
- payments andcollections forconstruction, repair andmaintenance ofautomobile roads;
- contributions totheChernobyl andSocial Protection Fund;
- contributions totheEmployment Fund ofUkraine;
- payments totheSocial Insurance Fund ofUkraine;
- payments tothePension Fund ofUkraine.
Thestatetaxesandotherobligatory payments areimposed bytheSupreme Council ofUkraine
andadministered across theentire territory ofUkraine.
Local taxes andfeesinclude:
- hotel fee;
- automobile parking fee;
- market fee;
- charges forissuance ofdocuments granting righttooccupy anapartment;
- resort fee;
- feecharged forparticipation inhorse races;
- feefrom individuals taking partinhorse racegambling;
- advertisement fees;
- charges forpermission touselocalsigns (symbols);
- charges forpermission toshoot motion pictures andTVprograms;
- feesforpermission toconduct localauctions, competitive salesandlotteries;
- communal tax;
- charges forautomobiles thatheadabroad ’crossing theoblasts adjacent tothestateborder;
- feeforpermission tosetuptrade facilities.
Local taxes andfeesandprocedures forpayment ofsuchshallbeestablished bytheorgans
oflocalself-government inaccordance withthelistandmaximum ratesasestablished bytheeffective
lawsofUkraine, except forcharges forautomobiles thatheadabroad andcross theterritory ofthe
oblasts adjacent tothenational border, which istobeestablished bytheoblast Councils ofpeople ’s
deputies.
Revenues from local taxes andfeesshall beincluded tothelocal self-government budgets
depending ontheplaceofresidence (location) ofthetaxpayer, unless otherwise isprovided inapplicable
legislative actsofUkraine.
Inaddition tothat,taxes canbedistinguished asdirect andindirect.
Direct taxes aretaxes collected immediately fromtaxpayer ’sproperty orincome. Suchtaxes
include acorporate profit taxandpersonal income tax.
Indirect taxes aretaxes collected intheformofextrapriceandpaidbyconsumers. Suchtaxes
include, inparticular, avalue added taxandexcise tax.WT/ACC/UKR/32
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TYPES OFTAXES, FEES AND OTHER OBLIGATORY PAYMENTS
Value added tax
Thevalue added taxisanindirect taxpaidtothestatebudget attheevery stageofmanufacturing
goods, performing services, importing goods oratthetimeofcustoms clearance.
Thepayers ofVATareentrepreneurial entities located ontheterritory ofUkraine, international
associations andforeign juridical persons whocarryontheirownbehalf manufacturing orotherbusiness
activities intheterritory ofUkraine, andcitizens ofUkraine, foreign citizens andindividuals without
citizenship whoimport (ship) goods (items) tothecustoms territory ofUkraine.
Theobjects oftaxation include:
- proceeds fromthesaleofgoods orperformance ofservices, except fromthesaleforforeign
currency;
- proceeds from thesaleofgoods orperformance ofservices whether produced bytheseller
orgiven forfurther processing orpurchased;
- proceeds fromthesaleofgoods orperformance ofservices paidinpart,ortheturnover from
thetransfer ofgoods (performance ofservices) without anypayment made fortheirvalue,
within theenterprise forpurposes ofinner consumption, provided thatexpenses onsuchgoods
(services) arenotincluded inproduction costs, andturnover from goods (services) provided
fortheenterprise ’semployees;
- proceeds fromtheexchange ofgoods (services) forother goods (services) without payments
made;
- proceeds fromthetransfer ofgoods (services) toother enterprises orcitizens without orwith
partial payment forthem;
- proceeds fromthesaleofthecollateral, including transfer ofthecollateral inthecasetheliability
secured bythiscollateral isnotmet.
Inthecaseofcitizens whoengage inentrepreneurial activities andwhose proceeds fromsales
ofgoods (services) haveexceeded 100minimum wages, theobject oftaxation shallbethedifference
between theirgross income fromsalesofgoods (services) andexpenses (including VAT paid) directly
related totheproduction ofsaidgoods (performance ofsaidservices).
Thetaxable turnover shallnotinclude:
- proceeds from thesupply ofgoods (services) bycertain structural unitsoftheenterprise for
purposes ofproduction toother structural unitsofthesameenterprise, provided thatsuchunits
donothavetheirseparate bankaccounts, areheldonthebalance sheet ofthisenterprise and
donotcarry onanyproduction orcommercial activities ontheirownbehalf;
- sales, exchange, freetransfer offixed assets acquired before 1.6.93;
- value ofreturnable (multiple-use) packaging;
- proceeds from theprovision ofgambling services bycasinos, gambling machines providing
winintheform ofmoney, winnings from horse races bets.
TherateoftheVAT isestablished intheamount of20percentandistobeapplied tothe
taxable turnover thatdoesnotinclude VAT.
Control overthepayment ofVAT onimported goods atthemoment oftheirmoving across
thecustoms border ofUkraine shallbearesponsibility ofcustoms organs, withallotherissues, including
transactions involving imported goods, being under control ofthetaxservice ofUkraine.WT/ACC/UKR/32
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Excise tax
Theexcise taxisanindirect taxwhich isimposed onhighly profitable andmonopolistic goods
(products) andincluded inprices onsuchgoods (products).
Thelistofgoods (products) subject toexcise taxandratesofthistaxaresubject toapproval
bytheSupreme Council ofUkraine.
Payers ofexcise taxareentrepreneurial entities -producers orcustomers ofgoods (products)
subject toexcise tax,including those whoimport such goods (products); citizens whocarry on
entrepreneurial activities without establishing ajuridical person; citizens ofUkraine, foreign citizens
andpersons without acitizenship whoimport (ship) goods (products) subject toexcise taxtothecustoms
territory ofUkraine.
Theobject oftaxation includes:
- turnover from thesales ofexcisable goods (products) produced inUkraine, theirexchange
forother goods (products, services), freeorpartially paidtransfers ofsuchgoods (products);
- turnover fromtherealization (transfers) ofgoods (products) forownconsumption, processing,
andforownemployees;
- customs value ofgoods (products) imported inUkraine withcustoms duties andfeestaken
intoaccount, andwithsuchgoods (products) having beenpaidforinforeign currency or
received forfree;
- work compensations provided intheform ofphysical goods;
- proceedsfromthesalesofconfiscated,inherited,lostproperty,treasuresandpurchasedvaluables;
- natural measurement units(1litre,1kilogram, engine volume) inthecaseofparticular excisable
goods (alcohol, tobacco, automobiles);
- turnovers from thesaleofthecollateral, including transfer ofthecollateral inthecasethe
liability secured bythiscollateral isnotmet.
Theexcise taxisalsoimposed onproceeds from thesalesofexcisable goods (products) that
werepurchased before 1January 1992andthatatthetimeofsaleareincluded intheenterprise balance.
LawofUkraineof9.15.95“Onexcisetaxonalcoholicbeveragesandtobaccoproducts”specified
procedures forcomputation andpayment ofexcise taximposed onalcoholic beverages andtobacco
products whether produced byUkrainian manufacturers orimported toUkraine. TheLawintroduced
themechanism foradministration ofexcise taxesimposed onalcoholic beverages andtobacco products
whether produced byUkrainian manufacturers orimported inUkraine, which isbased onuseofexcise
stamps. Excise stamps stuck tothesaidgoods serve asapermit tosellsuchgoods toconsumers,
bring them tothecustoms territory ofUkraine andasaproof thattheexcise taxhasbeenpaid.
Exemptions from excise tax
Excise taxshallnotbeimposed inthecaseofexcisable goods (products) thatareexported
forforeign currency.
Alsoexemptfromexcisetaxareproceedsfromthesalesofspecial-purposecarsforthedisabled,
whicharepaidforbysocialsecuritybodies,aswellasspecial-purposecarsdesignedforspecificagencies
andorganizations (police, ambulance) thelistofwhich isapproved bytheCabinet ofMinisters of
Ukraine.WT/ACC/UKR/32
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Profit tax
LawofUkraine “Oncorporate profit tax”of28December 1994introduced thetaxonprofits
ofenterprises, agencies andorganizations, effective since 1January 1995.
Thebalance profit oftheenterprise isthesumofitsprofits derived fromallkinds ofactivities
undertakenduringthereportingperiodintheterritoryofUkraine,itscontinentalshelf,exclusive(marine)
economic zone, oroutside ofUkraine, which isreflected intheenterprise ’sbalance sheet, andincludes
profits fromthesalesofproducts (performance ofservices), including those supplied byauxiliary or
subsidiary enterprises thatdonotmaintain separate balance sheets anddonothaveseparate fixedassets,
intangible assets, valuable papers, foreign currency resources, other financial resources andmaterial
assets, andalsoincluding profits derived from rent(leasing) transactions, royalties andprofits from
non-realization transactions.
Payers ofcorporate profit tax
Payers ofcorporate profit taxare:
- entrepreneurial entities, budgetary organizations totheextent towhich theyoperate onthe
self-financing basis, banks (excluding National Bank ofUkraine anditsbranches, except those
thatoperate onthebasisofself-financing, andpenitentiary institutions), which areestablished
asjuridical persons inaccordance withlawsofUkraine, international organizations thathave
notbeengranted immunity anddiplomatic privileges andwhich carry outentrepreneurial
activities inUkraine;
- branches, subsidiaries andother separate divisions ofthetaxpayers thatmaintain theirseparate
balance sheets andhaveseparate bankaccounts;
- non-residents thatcarry outentrepreneurial activities inUkraine through their permanent
representations intheterritory ofUkraine.
TheNational Bank ofUkraine anditsbranches (excluding self-financing ones) paytothestate
budget theamount bywhich theirgross incomes exceed theirtotalexpenditures made inaccordance
withtheirexpenditure schedule approved bytheSupreme Council ofUkraine.
Object oftaxation
Theobject oftaxation isthetaxpayer ’sbalance profit increased by:
- thesumofmoney infunds created bythetaxpayers ‘attheexpense ofthecosts ofproducts
(goods, services) thatheusedforpurposes other thanthese goods (services) werepurchased
for;
- thesumofmoney, including hardcurrency resources, value ofmaterial andimmaterial assets,
including corporate rights andvaluable papers received bythetaxpayer from other business
entities forhisownuseforfreeorasafinancial assistance notsubject toredemption, ornot
reflected inthesalesaccount.
Forpurposes oftaxation thebalance profit shallbereduced by:
- profit derived from corporate rights ownership (received dividends);
- enterprise property taxpaidtothebudget asprovided bylawsofUkraine;
- taxonlandusedinagricultural production activities;
- taxonowners oftransport means;
- expenditures onmaintenance ofsocial andcultural objects financed bytheenterprise andkept
onitsbalance sheet;WT/ACC/UKR/32
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- money, material andimmaterial assets ofenterprises thatweretransferred tonon-profit funds,
agencies, institutions, public andreligious organizations, forpurposes ofcarrying out
environmental, health, amateur sports, culture, education, research andcharity projects and
activities, butnotgreater than4percentofbalance profit;
- profits from thesales byinvestor ofhisportion ofhousing andsocial andtrade andsocial
infrastructure facilities constructed athisexpense forarmyservicemen andtheirfamilies which
under Ukrainian lawsareentitled tohousing.
When computing profits derived fromsalesofproducts (services), theproceeds fromthesales
mustbereduced bytheamount oftheassessed (paid) value-added tax,excise tax,import duty, customs
dutyandothermandatorypaymentsandfeesadministeredundereffectivelaws,aswellastotalproduction
expenses thatareincluded inproduction costofsoldgoods (services.) Such expenditure items are
listed intheRegulations onapplication ofLawofUkraine “Oncorporate income tax,”enacted by
theSupreme Council ofUkraine ’sResolution #247/95-BP of27June1995.
Thecorporate profit taxrates
Profits ofenterprises, including those ofenterprises based onpersonal property ofcitizens
ofUkraine, shallbetaxed atthebasic taxrateof30percent. There alsohavebeenestablished the
corporate profit taxrates fortaxing particular kinds oftransactions. Thus, profits derived from
intermediary activities, auctions atwhich material assets havebeensold(excluding valuable papers,
corporate rights, hardcurrency assets andother kinds offinancial resources), aresubject tothe
45percent corporate profit tax.
Profits derived fromlotteries (except thoserunbythestate), casinos, othergambling businesses
(places ofgambling), gambling machines withwinnings intheform ofmoney andother kinds of
gambling businesses (including income fromrental andother usesofproperty forthepurposes ofsuch
businesses) shallbetaxed at60percentunless otherwise provided inspecific lawsconcerning taxation
ofincomes derived from gambling business.
Some specific details concerning determining profits from some activities aresetforth in
paragraphs 3.3-3.9oftheLawofUkraine “Oncorporate profit tax”of28December 1994.
Profits ofenterprises andorganizations which belong totheagricultural sector andwhich supply
services related toagricultural production aretaxed attherateof15percent.
Exempt from thecorporate profit taxare:
- enterprises, withrespect toprofits derived fromproducing agricultural products andproducts
oftheirfurther processing attheirownprocessing facilities, including inter-enterprise facilities,
andexcluding profits derived from growing decorative flowers, producing alcohol, liquors,
beer, furandtobacco products, ingredients formaking wine, excluding those soldforfurther
processing;
- fisheries andfishing collective farms, withrespect toprofits derived from thecatch offish
anditsfurther processing atone’sownprocessing facilities;
- veterinary andsanitation factories, withrespect toprofits earned fromcollecting andutilizing
corpses ofdeadanimals andusing themforproduction ofalbumin-containing fertilizers serving
asadditions tothecattle feed;
- construction,designfirmsandotherenterprises,withrespecttotheprofitsderivedfrombuilding
inruralareas ofhousing, public andcultural facilities, trade, health care, fitness andsports,
education, communication, road, energy, natural gasandwater supplying facilities andsystems,
cattle barns, engineering andtechnical complexes formaintenance oftractors andother
machineries, andother objects thathaveapositive effect onsocial conditions inruralareas.WT/ACC/UKR/32
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Theamount ofcorporate profit taxmust bereduced by:
- 20percent-forpurposes ofcompensation forenterprise ’sexpenses onreconstruction and
modernization oftheactive partoffixed assets posted inthereporting period, inthecaseof
repeat useforthispurpose ofdepreciation payments andbalances ofthefundforproduction
development andothersimilar funds setupfromtheprofits earned inthepastreporting periods;
- 50percent-forpurposes ofcompensation forenterprise ’sexpenses onpurchasing special
equipment andmachinery necessary forwork ofinvalids of1stand2ndcategories thatare
employed bytheenterprise. Enterprises ofpublic organizations ofinvalids, thatareregistered
inaccordance witheffective laws, provided thatinvalids constitute more than50percentof
thetotalemployment ofsuchenterprises, provided thatprofitability rateofsaidenterprises
isnohigher than50percentandthattheydonotcarry outtransactions relating toexportation
orimportation (unless suchtransactions areundertaken toforpurposes ofproducing andselling
ownproducts), areexempt fromcorporate profit tax.Theamount oftheassessed taxdueby
theendofthereporting year, afteralldeductions specified above aremade, istobepaidto
thebudget inaccordance withgeneral rules;
- 100percent-forpurposesofprovidingcompensationforenterprisesandorganizations’expenses
relating toinvesting inconstruction andacquisition ofhousing forthearmy servicemen and
theirfamilies, which areentitled toobtain housing under effective lawsofUkraine.
Personal income tax
Forthetimebeing thepersonal income taxisadministered inaccordance withtheDecree of
theCabinet ofMinisters #13-92 of26December 1992, “Onpersonal income tax,”which defined taxable
personsandincomes,stipulatedproceduresforpersonalincometaxpayment,exemptionsandprocedures
forgranting them.
Payers ofpersonal income tax
Thepayers ofpersonal income taxarecitizens ofUkraine, foreign citizens andpersons without
citizenship whether having ornotpermanent residence inUkraine.
Citizens withpermanent residence inUkraine include Ukrainian citizens, foreign citizens and
persons without citizenship whoreside inUkraine fornolessthan183daysinacalendar year.
Inthecaseofpermanent residents ofUkraine theobject oftaxation istheiraggregate taxable
income derived during acalendar year(which consists ofmonthly aggregate taxable incomes) from
various sources either intheterritory ofUkraine orabroad.
Inthecaseofcitizens whodonothavepermanent residence inUkraine, subject topersonal
income taxareincomes derived fromsources located inUkraine. Incomes earned inUkraine bysaid
persons aresubject topersonal income taxatthesource ofpayment attherateof20percentwithout
excluding tax-exempt minimum income andgranting taxprivileges.
Forpurposesofdeterminingtotalpersonaltaxableincomes,bothincomesintheformofphysical
goods andintheform ofmoney (national orforeign currency) must betaken intoaccount.
Personal income taxonincomes earned inforeign currency must bepaidinUkrainian
karbovanets based ontheNational Bank ofUkraine ’sexchange rateeffective onthedateofreceipt
ofsuchincome.
Incomes obtained intheform ofphysical goods mustbereflected inthetotalincome forthe
calendar yearbased onthefairmarket price, unless otherwise isprovided inthisDecree.WT/ACC/UKR/32
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Inthecasewhen wages arepaidintheform ofproducts manufactured bytheenterprise, the
amount ofwages aspartofemployee ’smonthly totaltaxable income mustbecomputed onthebasis
ofprices atwhich theproducts weresoldtotheoutside consumers intherespective month. Ifduring
thecurrent month suchproducts werenotsold,thepriceatwhich theyweresoldintheprevious month
should betaken asareference price.
Physical goods produced byenterprises other thanonewhere thetaxpayer inquestion isemployed,
must bereflected intheincome onthebasis oftheprice atwhich theyarepurchased.
Total monthly (received during acalendar month) taxable income includes incomes received
bycitizens inanyformandunder anycircumstances regardless ofsources ofincome, excluding incomes
specified asthose notsubject topersonal income taxinarticle 5oftheCabinet ofministers ofUkraine ’s
Decree #13-92 of26December 1992, “Onpersonal income tax.”
Inaddition tothat,particular categories ofcitizens areentitled topersonal income taxprivileges,
inaccordance withwhich theirtotalmonthly taxable incomes must bereduced byacertain number
oftax-exempt minimum incomes.
Tosuchcategories, inparticular, belong citizens whohavechildren under 16years ofage;
citizens whohavebeenafflicted bytheChernobyl disaster; warveterans andcitizens towhom theLaw
ofUkraine “Onthestatus ofveterans ofwarandguarantees oftheirsocial protection ”applies; persons
withinborn disabilities, andinvalids of1stand2ndcategories; citizens whohavebeentaking care
ofdisabled persons from theirchildhood, provided thatsuchdisabled persons needcontinuous care
andlivewiththem inthesame apartment (house), andcitizens whosupport (areguardians of)three
ormore children.
Local self-government bodies areauthorized togrant additional taxprivileges toparticular
citizens upon theirrequest, based onfinancial andproperty status ofsuchpersons, andaccordingly
reduce theirtaxable incomes orexempt themfrompaying personal income taxforentire calendar year.
Personalincometaxexemptionduringacalendaryearshallapplytoincomesreceivedbycitizens
attheprimary employment place andshallbegranted bythetaxadministration bodies aftertheannual
personal income taxiscomputed onthebasis ofincome taxreturns submitted bycitizens.
Personal income taxexemption cannotbegranted unless there hasbeenissued adocument
substantiating provision ofsuchexemption.
Procedure fortaxation ofpersonal incomes
Given thattheobject oftaxation inthecaseofcitizens thathavepermanent residence inUkraine
istheiraggregate income inthecalendar yearreceived from different sources, theDecree specifies
some details concerning administering personal income taxduring acalendar year.
Income taxonaggregate taxable income earned bycitizens attheirprimary placeofemployment
(studying, servicing), iswithheld byenterprises, agencies, organizations andphysical persons which
areentrepreneurial entities, forwhich thetaxpayer works, andmustbecomputed inaccordance with
theprocedure andratesspecified inparagraph 1ofArticle 7oftheDecree withsubsequent amendments
andchanges taken intoaccount.
Incomes received attheplace ofprimary employment (studying, servicing) areconsidered
incomesreceivedfromenterprises,agenciesandorganizations,physicalpersonswhichareentrepreneurialWT/ACC/UKR/32
Page9
entities, forwhich citizens work, where theirpersonal employment certificate iskeptandwhere transfers
tothesocial security fundaremade.
Theaggregate taxable income earned attheplace ofprimary employment shallinclude incomes
derived from performing one’swork duties, thatis,incomes paidforcitizens ’performing particular
servicesinaccordancewiththeirqualification,specialty,position,intheamountdeterminedinaccordance
withtheform ofremuneration andonthebasis ofanemployment contract, including payments for
working part-time orunder short-term contracts, incomes intheformofdividends earned onshares,
asaresult ofdistribution oftheenterprise ’sincome (profit), aswellasother incomes thathavebeen
generated bymeans ofenterprises, agencies, organizations andphysical persons whoareentrepreneurial
entities ’providing theiremployees withmaterial andsocial assets intheform ofmoney orphysical
goods.
Incomes received bycitizens fromplaces other thanthatofprimary employment mustbetaxed
atthesource ofpayment attherateof20percentwithout deducting tax-exempt minimum income
andgranting taxprivileges established ineffective lawsforparticular categories ofcitizens.
Citizens whohavehadduring theyearsuchincomes arerequired tokeeprecords andreflect
them intaxreturn which theymustfilebefore 1March oftheyearfollowing thereporting onewith
thetaxadministration body based onthetaxpayer place ofresidence.
Enterprises, agencies, organizations andphysical persons operating asentrepreneurial entities,
which disburse payments topart-time employees arerequired, nolaterthan30daysafterthedateof
payment, report toataxadministration body attheplace ofresidence oftheemployee about the
remuneration paidandamount ofpersonal income taxwithheld.
Thetaxadministration bodies usesuchreports forexamining filedtaxreturns andforcomputing
theannual personal income taxontheaggregate taxable income forayear, whether ornotreceived
attheplace ofprimary employment. While determining theannual personal income tax,thetaxable
incomemustbereducedbytheminimumtax-exemptpersonalincomeestablishedinthelawsandeffective
forthedatewhen thetaxisassessed, withpersonal income taxprivileges being granted tocitizens
inaccordance withestablished procedures.
State Duty
Payers ofthestateduties intheterritory ofUkraine arephysical andjuridical persons who
paythemforactivities performed fortheirbenefit andfortheissuance oflegaldocuments bycompetent
bodies.
Thestatedutyischarged for:
i. claims, applications, dispute statements, complaints relating toparticular cases ordecisions
concerning religious organizations, appeals ofjudicial decisions andcomplaints about decisions
thathavebeenputintoeffect, aswellasforthecopies ofdocuments provided bythecourts;
ii. claimsandcreditors’claimsrelatingtobankruptcyproceedingsandsubmittedtoarbitragecourts,
applications requesting review ofdecisions, approvals, resolutions forpurposes ofsupervision
orduetonewcircumstances;
iii. provision ofnotary services bythestatenotary agencies andexecutive committees ofvillage,
rural, cityCouncils ofpeople ’sdeputies, aswellasforissuance ofthecopies ofthedocuments
certified bythenotary;
iv. registration ofbirths, marriages anddeaths, andrepeat issuance ofcertificates substantiating
thesaidevents inconnection withchanges, additions, amendments andrenewal ofsuch
certificates;WT/ACC/UKR/32
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v. issuance ofdocuments thatgiverighttotravel abroad andissuance ofinvitations forforeign
citizens tovisitUkraine, forextension andamendments ofsuchdocuments, forregistration
ofnational passports offoreign citizens orofdocuments substituting them; fortheissuance
orextension ofresidence permits; fortheissuance ofvisasforforeign citizens allowing them
toenterorleaveUkraine, andforapplications forobtaining orannulment Ukrainian citizenship;
vi. issuance ofnewpassports tothecitizens ofUkraine, fortheissuance ofinternational passports
tothecitizens ofUkraine, orextension ofsuchpassports thatgiverighttotravel abroad;
vii. citizen ’splace ofresidence registration;
viii. licenses tohuntandfish;
ix. transactions withvaluable papers;
x. transactions performed atcommodity andother (except forcurrency) exchanges;
xi. conducting auctions;
xii. services relating toreceipt ofdocuments substantiating industrial property rights, verification
oftheirvalidity andtransfer oftheirholders ’rights.
Theamount ofthestatedutymaybedetermined intwoways:
i. asapercentage ofclaimed value, contract value, property value;
ii. asanumber ofminimum tax-exempt personal incomes effective atthedateofpayment ofthe
stateduty.
Procedure forpayment ofstateduties
Thestateduties arepaidbefore anapplication isfiledorrequested activities areperformed,
andinsome instances -atthetimewhen documents areprovided.
Thestatedutyispaidthrough lending institutions incashorbymeans oftransferring money
from thepayer’saccount withthelending institution.
Forapplicationsclaimingforeigncurrencyassets,forservicesandtransactionsinforeigncurrency
thestatedutyshallbepaidinforeign currency.
Payment ofstatedutytothebudget
Thestateduties arepaidattheplaces where documents arereviewed orissued. Thestateduties
arepaidtolocalbudgets, except forduties paidforappeals toarbitrage courts, forfiling applications
requesting review ofdecisions, approvals andresolutions ofarbitrage courts forpurposes ofsupervision,
andforservices related toissuance orvalidation ofpatents onplant varieties, which arepaidtothe
State budget ofUkraine.
Responsibilityforcollectionofstatedutiesliesonthestatetaxadministrationbodiesandfinancial
organs ofUkraine.
Pursuant totheResolution ofSupreme Council ofUkraine #4048-XII of25February, 1994,
“Onintroducing changes andadditions totheResolution oftheCabinet ofMinisters “OnStateDuty, ”
thestatedutyfortheissuance orextension ofthepassport ofthecitizen ofUkraine forthepurpose
oftravelling abroad, forre-registration ofinternational passports in1994 -1998 shallbepaidtothe
statebudget, andusedtofinance services related toissuance andregistration ofpassports.WT/ACC/UKR/32
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Land Payment
According tothetotheLawofUkraine ofJuly31992, “OnLand Payment, ”theuseofLand
inUkraine istobepaidfor.Landpayment iscollected intheformoflandtaxorleasepayment assigned
depending onthequality andlocation ofthesite,based upon thecadastre landevaluation.
Land owners andlandusers, withtheexception oflessees, shallpaylandtax.
Forthelandleased, lease payments havetobemade.
Land payments areintroduced withthepurpose ofestablishing asource offunds forfinancing
measures astorational utilization andsafeguarding oflands, increasing soilfertility, reimbursement
oflandowners ’andlandusers’expenses related tomanaging inferior quality lands, andconducting
landcadastre.
According totarget landapportioning, alllands ofUkraine aredivided into:
- lands foragricultural purposes;
- lands occupied bypopulated areas (cities, towns, andvillage-type settlements);
- industrial lands, lands usedbytransportation, communication lines, fordefense needs, and
other purposes;
- lands usedforthepurposes ofwildnature protection, recreation, andhistoric andculture sites;
- forest fundlands;
- water fundlands;
- reserve lands.
According tothisdivision oflands, theLawofUkraine “Onlandpayment ”establishes the
average ratesoflandtax,which aresubject tochange when cadastre landevaluation changes.
Theobject oflandpayment istheplotoflandwhich isowned, used, orleased.
Thesubject oflandpayment isthelandowner, itsuser, orlessee.
Theamount oflandtaxdoesnotdepend ontheresults ofeconomic activities oflandowners
orlandusers andisestablished according tosquare unitmeasure oflandperyear.
Theaforementioned Lawprovides foranumber ofprivileges onthepayment oflandtax.
Besides,theSupremeRadaoftheAutonomousRepublicofCrimea,oblast,Kyiv,andSevastopil
localRadas ofpeople ’sdeputies alsocanestablish privileges astolandpayments: partial exemption
foracertain period oftime, payment suspension, orlowering ratesoflandtax.
Juridicalpersonsindividuallycalculatetheamountoflandtax,accordingtotheformatestablished
bytheHead oftheState TaxAdministration ofUkraine, andnotlaterthan15Julysubmit thedata
totheappropriate statetaxadministration annually.
Thecharges forlandtaxpayments toprivate persons arepresented bystatetaxadministrations
thatissue thepayer abillonlandtaxpayment prior toJuly15ofthecurrent year.
Land payments arerecorded intospecial budget accounts ofvillage, town, orlocalRadas of
people ’sdeputies within theterritory ofwhich thelandislocated.WT/ACC/UKR/32
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Forcentralization oflandworks, 30percentofthefunds, collected aslandpayments, which
werereceived onspecial budget accounts offundamental levelRadas ofpeople ’sdeputies, arecentralized
onaspecial budget account ofUkraine. 10percentiscentralized onspecial budget accounts ofthe
Autonomous Republic ofCrimea andregions.
Thefunds received aslandpayments areusedtofinance measures astorational utilization
andsafeguarding oflands, conducting landcadastre, extending favourable credits, economic stimulation
oflandowners, andother privileges.
Foruntimely payment oflandtax,afineintheamount of0.2percentofthedebtbalance
willbelevied forevery dayofdelay.
Control fortheaccuracy ofaccounting andcollection oflandtaxiscarried outbytax
administrations.
Taxfrom owners ofvehicles andother self-propelling machines andmechanisms
Taxfrom owners ofvehicles andother self-propelling machines andmechanisms isoneof
thesources offinancing construction, reconstruction, repairs andmaintenance ofautomobile roads
ofgeneral usage.
Taxpayers from among theowners ofvehicles andother self-propelling machines and
mechanisms areenterprises, associations, andorganizations which represent inthemselves juridical
persons, foreign juridical persons, andalsocitizens ofUkraine, foreign citizens, andpersons without
citizenship, whohavepersonal vehicles (cars, motorcycles, motor scooters, tractors, andmotor blocks)
andother pneumatic, self-propelling machines andmechanisms.
Motorboats (ferries andyachts) andmotor sledowners arealsotaxpayers.
Thetaxinnotlevied onowners ofvehicles andmechanisms oncaterpillar track norgrain
gathering andspecial purpose engine combines.
Theobject oftaxation ispower oftheengine ofpassenger andfreight vehicles, motorcycles,
motor scooters, andmotor blocks.
Thetaxispaidaccording toratings (partially fromtheuntaxed minimum ofcitizens ’income)
based ontheengine power:
- forevery horsepower;
- forevery kilowatt ofpower.
Thetaxispaidtothebudget ofadministrative territorial unitofselfgovernment, according
tothelocation ofenterprises andplace ofresidence ofcitizens. 90percentofthisamount isusedfor
theneeds oftheroads economy, and10percentisreceived ontheaccount ofState Automobile
Inspection organs.
Thetaxfromowners ofvehicles andother self-propelling machines andmechanisms ispaid:
- bycitizens whohavepersonal vehicles -annually before technical inspection, butnotlater
thanthefirsthalfoftheyearwhen theinspection istobedone;
- byenterprises -annually, butnotlaterthantheendofthefirsthalfyear.
Taxpayment ismade before registration, re-registration, orannual technical inspection of
vehicles.WT/ACC/UKR/32
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Taxexemptions arereceive by:
- enterprises ofgeneral usage vehicles, which include vehicles forpassenger transportation, and
alsoenterprises ofgeneral usage vehicles formixed transportation (freight andpassenger),
which include vehicles forpassenger transportation;
- establishments andorganizations which arefinanced from thestatebudget;
- heroes oftheSoviet Union, persons awarded withtheorder ofSlava ofthree classes, invalids
ofWorld WarII,orother invalids from among military officers whobecame invalids asa
result ofwound, concussion, oranother incapacity acquired when defending theUSSR or
carrying outother military duties; italsoapplies tothose whobecame invalids astheresult
ofasickness connected tobeing onthefront line;invalids from among former partisan
detachments,andalsoinvalidswhowererecognizedequal,accordingtotheirpensionallowance,
tothose military officers mentioned inthisparagraph;
- participants ofWorld WarIIandmilitary officers, whoserved inthearmy aspartofthelimited
contingent oftheSoviet troops intheRepublic ofAfghanistan andother countries inwhich
there wasawaratthetimeoftheirservice there;
- invalids whohavemotor wheelchairs orhand-controlled automobiles;
- enterprises thatarelocated ontheterritory which suffered from thefallout asaresult ofthe
accident ontheChernobyl Nuclear Power Station;
- citizens, included inthecategories 1and2,whosuffered from theresults ofChernobyl
catastrophe, andalsothose citizens included inthecategories 3and4subject torelocation from
theareaofguaranteed voluntary evacuation andtheareaofintensified radio andecological
controls;
- citizens whowereevacuated toother areas fromareas fallout pollution asaresult ofChernobyl
catastrophe -during three subsequent years;
- a50percentexemption forfireextinguishing, ambulance vehicles, andpassenger buses receive
collective farms.
When certain valid reasons arepresent, village, town, andlocalRadas ofpeople ’sdeputies
havetherighttolower theamounts oftaxorcompletely exempt certain payers from paying it.
Taxonprivate trade andmanufacturing
Taxpayers forprivate trade andmanufacturing arecitizens ofUkraine, foreign citizens, and
persons without citizenship iftheyarenotregistered asentrepreneurial entities andcarry out
unsystematic (notmore often thanfourtimes inacalendar year) salesofproduced, reproduced, and
purchased goods.
Theobject oftaxation isthesumtotalvalue ofthegoods according tothemarket prices indicated
bythecitizen inthedeclaration submitted byhim,according totheplace ofresidence, totheregional
(municipal) taxadministration, andbythecitizen thatdoesnothaveapermanent place ofresidence
-according tothelocation ofselling.
Goods thathavebeengrown ontheprivate farmarenotsubject tobedeclared.
Therateoftaxation forprivate trade andmanufacturing isestablished intheamount of
10percentoftheindicated inthedeclaration market value ofthegoods subject tobesoldwithin three
days, butnotlessthanoneuntaxed minimum ofcitizens ’income. Incasethetermofsaleofgoods
isextended toseven days, therateoftaxation isdoubled.WT/ACC/UKR/32
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Theorder ofpayment ofandrecording thereceipt oftax
Thetaxonprivate tradeandmanufacturing ispaidintheformofpurchasing adisposable patent
fortrade, thevalue ofwhich isdetermined onthebasis oftheindicated bythepayer sumtotalvalue
ofthegoods andtherateoftaxation. Incasethepatent isnotused, theamount oftaxshallnotbe
returned. Theminimum termofasingle disposable patent isthree days, andthemaximum -seven
days.
Thetaxonprivate tradeandmanufacturing isrecorded inlocalbudgets according totheplace
ofpurchase.
Citizens whosellgoods shall, ontherequest ofauthoritative persons orstatetaxadministration
andorgans ofinternal affairs, present theirdisposable patents.
Themeasure ofpayers ’accountability
Citizens,whoselltheirgoodswithoutacquiringdisposablepatents,withpatentsthatareoverdue,
orwhosellgoods thatarenotindicated inthedeclarations, forthemheads ofstatetaxadministrations
andtheirdeputies shall levyadministrative fines ranging from onetotentimes theamount ofthe
established bythecurrent legislation untaxed minimum ofcitizens ’monthly income; andforthesame
actions recurring within oneyearafterlevying theadministrative fine-from tentotwenty times the
amount oftheestablished bythecurrent legislation untaxed minimum ofcitizens ’monthly income.
Protocols onadministrative violations arecreated byauthoritative persons ofstate tax
administrations.
Executive committees ofRadas ofpeople ’sdeputies inform thegeneral public concerning the
order ofselling goods under disposable patents, indicate thesites, andcreate appropriate conditions
foritsexecution.
Control overobserving theDecree islaidonstatetaxinspections andorgans ofinternal affairs.
Payment forspecial usage ofdepths while extracting useful minerals
Payment forspecial usage ofdepths while extracting useful minerals isintroduced onthebasis
oftheLawofUkraine “Onprotection oftheenvironment, ”theLawofUkraine “Onentrepreneurship, ”
theCode ofUkraine onDepths, andresolutions oftheCabinet ofMinisters ofUkraine of
4February 1994, No.85“Onratification ofthetemporary order ofmaking payments forspecial usage
ofdepths while extracting useful minerals ”withthepurpose ofproviding forarational andintegrated
depths usage inorder tosatisfy rawmineral needs, insure depths protection, andguarantee safety of
people, property, andtheenvironment when thedepths used.
Payers forspecial usage ofdepths while extracting useful minerals areentrepreneurial entities
independent oftheirforms ofownership, including foreign investment enterprises which arecarrying
outextraction ofuseful minerals.
Theobject ofpayment forspecial usage ofdepths while extracting useful minerals isthevolume
ofliquidated balancing resources of(foroil,natural gas,peat,andhydro andmineral resources itis
theamount ofextracted) useful minerals.
Payments forspecial usage ofdepths while extracting useful minerals ofnational andlocal
importance aremade byentrepreneurial entities thatextract andsellrawminerals, andalsobyWT/ACC/UKR/32
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entrepreneurial entities which, asapartoftheirstructure, haveasubdivision (acoalororemine, quarry,
etc.)thatcarries outextraction ofuseful minerals andfurther transfers themforfuture processing within
itsborders.
Theamount tobepaidforspecial usage ofdepths while extracting useful minerals iscalculated
personally bythepayers based onthevolume ofliquidated (foroil,natural gas,peat,andhydro and
mineral resources -ontheamount ofextracted) balancing resources ofuseful minerals intheamount
of1percentofselling unitprice oftherawmineral extracted, without considering theVAT.
Foracoalindustry enterprise, correcting coefficient of0.5isintroduced aspayment standard.
Foranentrepreneurial entity which, asapartofitsstructure, hasasubdivision (acoalorore
mine, quarry, etc.)thatcarries outextraction ofuseful minerals andfurther transfers them forfuture
processing within itsborders, instead ofprices forrawminerals, thecostofminerals tothesubdivision
times thecorrecting coefficient of1.1isusedduring calculations ofpayments forusage ofdepths while
extracting useful minerals.
Payments areadded quarterly, according tothebalance accruing from thebeginning ofthe
year.
When useful minerals ofnational andlocalimportance areextracted, payment forspecial usage
ofdepths iscounted overintheamount of40percenttothestatebudget, and60percenttothebudged
oftheAutonomous Republic ofCrimea, oblasts, andcities ofKyiv andSevastopil tosection 16of
income andexpense classification ofstateandlocalbudgets; thecodeofbank’sreport tothestatebudget
is53.
While extracting useful minerals oflocalimportance, payments arecounted overtobudgets
oftheAutonomous Republic ofCrimea, oblasts, andcities ofKyiv andSevastopil tosection 16of
income andexpense classification ofthestateandlocalbudgets.
Control overobserving accuracy ofmaking calculations andtimely payments forspecial usage
ofdepths while extracting useful minerals isdonebystatetaxadministrations, according tothelocation
ofuseful mineral deposit.
Payment forspecial usage offorest resources
ForestsofUkrainearethecountry’snationaltreasureandaccordingtotheirpurposeandlocation
fulfilchiefly ecological, aesthetic, educational, andotherfunctions; theyhavealimited usage importance
andaresubject tostatesupervision andprotection.
Allforests ofUkraine areproperty ofthestate.
TheSupreme Rada ofUkraine isincharge offorests onbehalf ofthestate.
TheSupremeRadaofUkrainedelegatesitsauthorityconcerningforestsupervisiontoappropriate
Radas ofpeople ’sdeputies.
Within theircompetence, Radas ofpeople ’sdeputies apportion landsegments offorest fund
forpermanent ortemporary use.
Withthepurpose ofrational andfrugal usage offorest resources, theForest Code ofUkraine
introduces payment forspecial usage offorests resources.WT/ACC/UKR/32
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Forest resources include: technical andmedical timber, fodder, foodstuffs, andother forest
products thatareusedforsatisfying public andproduction needs.
According totheirimportance, forest resources aredivided intoforest resources ofnational
andlocalimportance.
Forest resources ofnational importance include wood received asaresult ofmajor usage and
rosin.
Forest resources oflocalimportance include forest resources thatarenotattributed toresources
ofnational importance.
Awoodcutting card(ororder) orforest cardrepresent apermission forspecial usage ofnational
andlocalimportance forest resources.
Thewoodcutting cardisgiven toallow depositing ofrosin, depositing ofwood during major
usage, woodcutting withthepurpose ofeliminating forest barriers, woodcutting asapartofforest
nurturing, sanitary andothercuttings connected withcarrying outforest economy measures andclearing
outforest areas connected tobuilding hydrostations, pipelines, highways, etc.
Theforest cardisgiven toallow haying, grazing livestock, setting upbeehives, gathering wild
fruits andberries, mushrooms, wall- andhazelnuts, medical plants andtechnical rawmaterials, and
reeds; usage offorest areas withscientific andresearch purposes (without theright tocuttrees);
temporary usage offorest fundlands foragricultural production, other thanagricultural landareas
thatareincluded asforest fundlands; andalsousage offorest resources fortheneeds ofhunting
economy, locating tourist camps, tourist centres, orother similar facilities involving building ofno
major-type structures forlonger thanoneyear.
Payers forspecial usage offorest resources areallusers offorests.
Theobject ofmaking theindicated payments iswood offorest origination projecting outof
astump, rosin, secondary forest materials, suchasstumps, rind, bark, foliage, andsecondary forest
usage.
Secondary forest usage includes: grazing livestock; setting upbeehives; haying; extracting wood
juices; gathering anddeposing wildfruits, wall- andhazelnuts, mushrooms, berries, medical plants,
andtechnical rawmaterials etc.
Payments forspecial usage offorest resources ofnational importance aremade intheamount
of80percenttothestatebudget and20percenttothebudget oftheAutonomous Republic ofCrimea
andoblast budgets.
Payment forspecial usage offresh water resources
Payment forspecial usage ofwater resources isintroduced bytheDecree oftheCabinet of
Ministers ofUkraine of8February 1994, No.75“OnRatification oftheorder ofmaking payments
forspecial fresh water usage andtemporary norms ofpayment fortheirspecial usage.
Payments forspecial usage ofwater resources aremade byallentrepreneurial entities thatuse
water, independent oftheir forms ofownership, including hydro-energy andwater transportation
enterprises.WT/ACC/UKR/32
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Theamount ofpayments forspecial usage offresh water resources, other thanthose usedby
hydro-energy andwater transportation enterprises, isestablished according totemporary norms of
payment, volume ofwater consumption, andlimits ofitsconsumption.
Forexceeding thelimits offresh water consumption, payment ismade intheamount offive
times thenormal rate.
Indicated payments within theestablished limits areclassified asproduction expenses, butfor
anyfreshwater consumption inexcess ofthelimitpayments willbededucted fromtherevenue (income)
leftoverforpersonal useoftheenterprise.
Certain categories ofentrepreneurial entities areassigned privileged coefficients astemporary
norms ofpayment forspecial usage offresh water resources.
Theamount ofpayment iscalculated individually bypayers withconsideration ofprivileged
coefficients.
Payments aremade bypayers quarterly.
Payments forspecial useoffresh water resources ofnational importance arecounted overin
theamount of80percenttotheState Budget ofUkraine and20percenttothebudget ofthe
Autonomous Republic ofCrimea andoblast budgets. Payments forspecial usage ofwater resources
oflocalimportance arecounted overtolocalbudgets oftheappropriate Radas ofpeople ’sdeputies.
Payments forwater usage fortheneeds ofhydro-energy andwater transportation aremade totheState
Budget ofUkraine, budgets oftheAutonomous Republic ofCrimea, oblasts, andcities ofKyiv and
Sevastopil ontheconditions providing formaking payments forusage offresh water resources within
thelimit.
Control overspecial usage offresh water resources andevaluation ofitsvolume arelaidon
appropriate organs oftheMinistry ofEconomic Security ofUkraine. Control overaccuracy and
timeliness ofmaking payments tobudgets isdonebystatetaxadministrations.
Local taxes andcollections
TheDecree oftheCabinet ofMinisters ofUkraine of20May201993 “Onlocaltaxes and
collections ”indicates types oflocaltaxes andcollections, theirlimits, objects oftaxation, andsources
ofpayment. Aspecial feature ofthisDecree isthefactthatitprovides forintroduction oflocaltaxes
andcollections bythedecision ofalocalself-government organ. Thissameorgan develops andratifies
aprovision thatestablished theorder ofmaking payments andcounting overoftaxes andcollections
tolocalbudget, according tothelisting andwithin theestablished ratelimits.
Organs oflocalself-government have, within theircompetence, therighttointroduce privileged
ratesandcompletely nullify localtaxes andcollections, orexempt certain categories ofpayers from
paying them andgrant anextension ofpayment oflocaltaxes andpayments.
Withregards toforeign juridical persons andcitizens, theypaylocaltaxes andcollections on
equalconditionswithjuridicalpersonsandcitizensofUkraineunlessotherwiseprovidedbyinternational
agreements andlegislation ofUkraine.
Hotel collection :Payers arepersons wholiveorstayinhotels. Themaximum amount of
collection should notexceed 20percentofthecostoflodgings (without additional services). Hotel
collection isexacted andcounted overtobudget ofthelocalself-government bythehoteladministration.WT/ACC/UKR/32
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Parking collection: Payers ofthiscollection arejuridical persons andcitizens whoparktheir
vehicles inspecially accommodated orallocated lots.Therateofcollection isdetermined for1hour
ofparking. Itsmaximum amount should notexceed three percentofuntaxed minimum ofcitizens ’
income onallocated lots;onspecially accommodated lotsitshould notexceed 1percentofminimum
citizens ’income. Parking collection ispaidbydrivers ontheplace ofparking.
Market collection: Thisispayment fortradesitesonmarkets, which iscollected fromjuridical
persons andcitizens whoareselling agricultural, industrial, andother types ofgoods. Market collection
isexacted foreveryday trading. Itsmaximum amount should notexceed 20percentoftheminimum
salary forcitizens andthree minimum salaries forjuridical persons. Market collection isexacted by
market employees before thebeginning ofselling goods.
Collection fromgiving anapartment order: Thiscollection ispaidforservices connected to
giving adocument thatgranting therighttomove intoanapartment. Themaximum amount ofcollection
should notexceed 30percentofuntaxed minimum ofcitizens ’income atthetimeofapartment order
registration.
Resort collection: Payers ofthiscollection arecitizens whoarrive toresort areas. Themaximum
amount ofthiscollection cannot exceed 10percentofuntaxed minimum ofcitizens ’income. Resort
collection isdoneby:hotel administration andother hotel-type establishments atthetimeofarriver
registration; lodging andintermediary organizations when sending people tobelodged inhouses
belonging tocitizens, according totherightofownership. From people whostayincitizens ’houses
without being assigned tothose bylodging andintermediary organizations, andalsofrompeople who
stayintents, automobiles, etc.,collection isexacted intheorder provided forbyRadas ofpeople ’s
deputies thatestablish thiscollection.
Exemption from payment receive:
- children under 16yearold;
- invalids andpeople thataccompany them;
- participants ofWorld WarII;
- international warriors;
- participants ofliquidation ofChernobyl NPPcalamity consequences;
- persons thatarrived withapasstosanatoriums, recreation centres, orholiday hotels;
- persons thatarrived toresort location onabusiness trip,foreducational purposes, permanent
place ofresidence, ortovisitwithparents orrelatives;
- menof60years ofageorolder, andwomen of55years ofageorolder.
Collectionsforparticipationinahorseracetrack:Thiscollectionisexactedfromjuridicalpersons
andcitizenswhopresenttheirhorsestocompeteincommercialraces.Themaximumamountofcollection
forparticipation inahorse racetrack foreachhorse should notexceed three untaxed minimums of
citizens ’income. Collection isexacted bytheracetrack administration before thebeginning of
competition.
Collections forwinning arace: Thiscollection isexacted bytheadministration oftheracetrack
from persons whowoninthetotalizator game attheracetrack during giving them theamount won.
Thecollection ’samount should notexceed 6percentoftheamount won.
Collection frompersons whoparticipate inthetotalizator game ontheracetrack: Thiscollection
isexacted intheformofpercentage addition tothebet,indicated asafeeforparticipating inthegame.
Itsmaximum amount should notexceed fivepercentoftheamount ofthebet.Theamounts ofcollection
areexacted bytheracetrack administration when aticket forparticipating inthegame isbought.WT/ACC/UKR/32
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Advertisement tax:Theobject oftaxation isthecostofservices forplacing advertisement. The
taxispaidforalltypes ofannouncements andinformation releases thataregiven withacommercial
purpose withtheassistance ofmassmedia, billboards, posters, andother technical means inthestreets,
along highways, onsquares, buildings, vehicles, andother places. Themaximum amount ofthetax
should notexceed 0.1percentofthecostofservices ofplacing advertisement foranextensive period
oftime. Thetaxispaidduring paying forservices ofplacing theadvertisement.
Collection fortherighttouselocalsymbols: Thiscollection isexacted fromjuridical persons
andcitizens whousethese symbols withcommercial purpose. Thepermission forusing localsymbols
(CityEmblem; names orrepresentations ofarchitectural orhistoric sites) isgiven byappropriate organs
oflocalself-government. Themaximum amount ofcollection should notexceed fromjuridical persons
0.1percentofthecostofgoods produced, works accomplished, orservices rendered using thelocal
symbols; fromcitizens thatareinvolved inentrepreneurial activity thisamount should notexceed five
untaxed minimums ofcitizens ’income.
Collection fortheright toconduct filming: These collections areexacted from movie and
television organizations thatconduct filming which requires from locallegislative organs additional
measures (allocation ofamilitia squad, securing thefilming territory, etc.).The maximum amount
ofcollections should notexceed expenses incurred forconducting theindicated measures.
Collection fortherighttoconduct local auctions, competition sales, andlotteries: Payers of
thecollection arejuridical persons andcitizens whohavethepermission toconduct auctions, competition
sales, andlotteries. Theobject oftaxation isthecostofgoods declared tobelocally auctioned orsold
onacompetition sale,based upon theirstarting price ortheamount forwhich lottery isissued. The
maximum amount ofcollection is0.1percentofthecostofgoods declared tobelocally auctioned
orsoldonacompetition sale,orfromtheamount forwhich lottery isissued. Themaximum amount
forconducting lotteries fromevery participant oftheauction should notexceed threeuntaxed minimums
ofcitizens ’income.
Communal tax:Thistaxisexacted from thelegal persons (with theexception ofbudget
establishments), organizations ofplanning andsubsidising andagricultural enterprises.*Itsmaximum
amount should notexceed 10percentofannual labour payment fund, which iscalculated based on
theuntaxed minimum ofcitizens ’income.
Collection from vehicles going abroad fordriving ontheterritory ofborder oblasts: This
collections isexacted from juridical persons andcitizens ofUkraine intheamount upto0.5ofthe
untaxed minimum ofcitizens ’income, depending onthetrade name andpower ofthevehicle, and
fromjuridical persons andcitizens ofother countries, including subjects oftheformer Soviet Union,
intheamount from 5to50USD. Collection isnotexacted from:
- automobiles thatconducts transportation abroad offreights bystateorder andaccording to
statecontracts;
- citizens ofUkraine, whoaregoing onabusiness trip;
- athletes whoaredeparting forinternational competitions;
- citizens whoaredeparting withthepurpose ofcultural exchange, formedical treatment, or
health recovery.
Collection forgiving permission toplace objects oftrade: Thisispayment fordesign andgiving
permissions ontrade inspecially allocated forthispurpose places. Thispayment isexacted by
*(This taxisexacted from juridical persons (with theexception ofbudget establishments), and
organizations ofplanning andsubsidy andagricultural enterprises).WT/ACC/UKR/32
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authoritative organs fromjuridical persons andcitizens whosellagricultural, industrial, orothergoods.
Themaximum amount ofcollections should notexceed 20untaxed minimums ofcitizens ’income for
subjects thatconstantly conduct trade inspecially allocated forthispurpose places, andoneuntaxed
minimum ofcitizens ’income perdayforone-time trade.
Accountability foraccuracy ofcalculations, timeliness ofmaking local taxpayments and
collectionstothebudgetoflocalself-governmentislaiduponpayers,accordingtothecurrentlegislation.
Thecontrol overmaking taxpayments andcollections isdonebystatetaxadministrations. Exaction
ofunpaid taxed andcollections within theestablished timeframes isdone according tothecurrent
legislation.
_______________
Wehaveconsidered major provisions ofstatetaxadministration activities andtaxation system
inUkraine. Tothose whoareinterested intaxation policies ofourcountry, weadvise tofollow up
onchanges andadditions tothecurrent legislation. Press service oftheMain StateTaxAdministration
ofUkraine andthemagazine Visnyk ofTaxService ofUkraine regularly inform thepublic concerning
those alterations through themass media.