Ministry of Finance of Ukraine introduces BEPS

On October 24^th, 2018, the Ministry of Finance of Ukraine together with the National Bank of Ukraine (NBU) published a bill on the implementation of the BEPS action Plan. The full name of the project is "the Draft law on amendments to the Tax code of Ukraine for the purpose of implementing the Plan to counter the erosion of the tax base and the withdrawal of income from taxation". Many offshore schemes can be finally deprived of sense due to adaptation of this bill.

The main objective of the BEPS Project is to create a legal framework to combat the minimization of corporate taxation in order to make to using aggressive schemes of international tax planning impossible.

The bill aims to implement in Ukraine the most important points of the BEPS Plan for the country. In particular, the establishment of rules on controlled foreign companies, limiting the cost of financial transactions with related parties, improving of the control over transfer pricing.

It is expected that the bill on the implementation of the BEPS action Plan will be submitted to the Verkhovna Rada before the end of 2018. It is thought that the Law will enter into force not earlier than January 1^st, 2020.

On materials of the following website: https://bepsinua.bank.gov.ua/beps/#intbeps