The President of Ukraine signed a bill on the tax on capital withdrawal

On July 4, the meeting of the President of Ukraine Petro Poroshenko with the business community took place, in which the Union of Ukrainian Entrepreneurs (SUP) participated as well. The most important events during the meeting were the signing by the President of the bill on the replacement of the income tax with the tax on capital withdrawal and the Law On Currency.
Petro Poroshenko focused his speech on the need for a series of reforms important for the growth of Ukraine’s economy. “The keywords for me are economic freedom, freedom of business. Next – the winner is the one who has a higher competitiveness. However, we must make clear benchmarks of what we need to do to ensure the continuation of changes in the country,” – Petro Poroshenko said.
The enactment of the Law On Currency cancels the rudiment of the 90s – special sanctions in the field of foreign economic activities and leaves only one type of license – currency licenses, instead of general and individual. Now, for investments abroad, you do not need an individual license from the NBU. Non-banking institutions, which will work with currency, will need to receive currency licenses, and banks will receive them automatically.
When signing the bill on the replacement of income tax with tax on capital withdrawal long-awaited by the business, the President stressed the anti-corruption nature of the tax on capital withdrawal, the positive experience of Estonia, and noted that he had no objections from the IMF.
The President of the Union of Ukrainian Entrepreneurs Vyacheslav Klymov recalled in his speech that the SUP has been working on the issue of the tax on capital withdrawal for about 2 years, and this is the first point from the TOP-10 demands of business to the authorities – pressing, urgent proposals for the modernization of Ukrainian legislation and the economy. Among the expected effects of introducing the tax on capital withdrawal: stimulating the economic development, simplifying the tax administration, unshadowing the economy, counteracting outflow of capital, etc. In addition, Vyacheslav Klymov focused in more details on the TOP-10 business demands to the authorities voiced by members of the SUP. Among them were a package of deregulation bills, modernization of labor legislation, opening of the land market, large-scale privatization, and so on.
“Business requires the adoption of legislative initiatives. They are the abolition of the share contribution to the construction, the single point of contact at the customs office, the unified invoice for the payment of taxes and fees, and the settlement of the bankruptcy procedure, etc. The Ukrainian economy needs these initiatives. They will allow Ukraine to make a major breakthrough in the Doing Business rating,” – Vyacheslav Klymov said, and stressed that a significant part of these initiatives have already been in the Verkhovna Rada in the form of bills. Vyacheslav Klymov urged the authorities not to lose focus on reforms in the country.