The Committee on Entrepreneurship, Regulatory and Antimonopoly Policy upholds the draft law on amendments to the Tax Code of Ukraine (re regulation of separate taxation issues connected with reorganization transactions (formation of legal entity) through a spin off)

Information Department of the Verkhovna Rada of Ukraine Secretariat
14 November 2013, 15:45

The bill (Reg. No. 3038) suggests regulate separate taxation issues connected with reorganization transactions (formation of legal entity) through a spin off in order to avoid ambiguous interpretation of provisions of the Tax Code.

In particular, the bill stipulates:

specify the notion of a “spin off” for the purposes of the Tax Code and bring it line with the provisions of the Civil Code and the Law “On State Registration of Legal Entities and Sole Proprietors”;

bring all provisions of the Tax Code in line with a new term “spin off”;

regulate peculiarities of accounting profit and loss in the course of reorganization transactions (formation of legal entity) through a spin off for the purposes of section III (corporate income tax) of the Tax Code.

Implementation of bill provisions will allow avoid judicial pleadings between economic entities and controlling bodies; promote development of entrepreneurship and increase investment attractiveness of the state.