The bill (Reg. No. 7101-1) sets the fundamentals of the tax system, lists the taxes, duties (compulsory charges) to be paid to the budgets of all levels. The bill also offers the methodology of their calculation; fixes the tax rates; determines the legal status of the tax payers, the procedure of tax administration and appeal against the resolutions of the monitoring agencies, as well as terms and conditions of imposing financial penalties on the tax payers for the violation of tax legislation.
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 bill 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 bill also abolishes twelve local taxes and duties.