The Committee on European Integration concluded that the Bill on Amendments to the Tax Code of Ukraine (in part of Tax Exemption of Individual Income obtained from the Sale of Domestically Grown Agricultural Produce with the Use of Land Plots granted into Individual Use) conforms to the European Law

11 April 2011, 16:17

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The bill (Reg. No. 8068) supplements sub-item 165.1 of clause 165 of the Tax Code of Ukraine with a new provision, whereby the income obtained from the sale of domestic agricultural produce, i.e. milk, meat, eggs, animal skin, wool, underfur, poultry droppings, vegetables, fruit, grown with the use of land plats granted into individual use, is exempt from income tax (thus, is non-taxable), unless the size of the land plot was increased by the obtained land plot (share).

 

The bill conforms to clauses 110-112 of the Treaty on the Functioning of the European Union, whereby no member state shall impose, directly or indirectly, on the products of other member states any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products. Furthermore, no member state shall impose on the products of other member states any internal taxation of such a nature as to afford indirect protection to other products.