V. Khomutynnik,
Chairman of the Committee, opened the hearings, and called for systematizing the tax legislation
by means of its codification to facilitate problem-solving in this sector.
The draft Tax Code was presented by the First Deputy Minister of Finance V. Kopylov. He stated that the Code developed a modern, fair tax policy to provide stable taxation, equality of all the tax payers before the Law, achievement of the strategic goals of sustainable development within a renewed system of state economic management.
V. Kopylov emphasised that the suggested methodological principles shaped a single approach to the taxation, provided equal understanding by all the participants of tax relations of their rights and obligations, set the principles of tax legislation. The document determined the authorities of the state power bodies and local self-government in part of the implementation, amendment and rejection of taxes, register of tax payers´ principal rights and obligations. The Code sets unified taxes and charges, their compulsory elements; fixes the register of all-state and local taxes and charges. The legislative document also introduces methods and procedures of regular price definition, specifies the notion of and grounds for tax exemption. The Tax Code forms the legal bases of tax and charges administration (compulsory payments) included into the tax system of Ukraine. It defines the mechanisms of tax obligation fulfillment.
Investment-innovational component of the income tax reformation would be introduced in several stages of tax rate reduction from 25 to 16 per cent (2011 and 2012 - 19%, 2013 and 2014 18%, 2015 17%, since 2016 16%).
As to the reformation of a simplified tax system, the bill grants special investment privileges: a 5-year-long zero tax rate for the newly registered business entities and enterprises with the annual income not more than UAH 3 million to attract investments into the replacement of fixed assets, arrangement of extra working places, increase in the volume of production, services and works.
Furthermore, it envisages a 10-year exemption from the income tax for the consumer goods industry enterprises (except legal entities operating with the raw materials supplied by customer), business entities rendering hotel services, shipbuilding and aircraft construction enterprises.
As to the income tax, the draft Tax Code introduces less progressive administration of income tax via establishment of a 17% income rate received by the tax payer within the fiscal month that exceeds tenfold rate of minimal wage; taxation at the rate of 5% of deposits income, provided the total sum of interests received within one month exceeds 2 minimal wages (from the total sum of deposits of UAH 200 thousand); taxation at the 15% rate of part of pension sum or monthly paid permanent alimony from the Pension Fund or State Budget of Ukraine that exceeds the fiscal tax year maximum scope of a single payment for the compulsory social insurance.
The document defined a tax payer as an owner of housing estate property. For each object of housing estate property, the exemption of 40 square meters is granted. However, such exemption can not be less than 100 square meters in cities and 200 square meters in villages for one object of the housing estate property.
The speakers dwelled upon the tax issues of the voluntary medical insurance, small business, insurance market, lease, tourist services, etc. They reported on the simplification of the tax system for legal entities; insurance provision of the banks, compensation of income to the state budgets in connection with the liquidation of market charge; technological parks; VAT taxation, etc.
In the end of the meeting, V. Khomutynnik summed up that the remarks and proposals expressed by the participants of the public discussion of the draft Tax Code would be taken into the consideration in the course of the further adjustment of the document.