Ukraine personal tax

The first major reform to the tax system was undertaken in 1997 with the main aim of increasing budget revenues, primarily by reducing the number of tax exemptions and ukraine personal tax and streamlining compliance procedures. Readers might be wondering why I decided to comment on the 1997 tax reform and not limit myself to the 2004 tax reform.

The reason is that to establish the trend of the reforms and thus the direction, in which the Ukrainian tax system is heading, it is necessary to analyse not only the current picture but also to analyse the historical pattern of tax reforms introduced by Ukrainian lawmakers. Ukrainian equivalent to a Tax Code establishes the regulatory framework for the operation of the tax system. As mentioned above, this law contains the list of state and local taxes and duties applicable. In addition, there are 16 different local taxes and duties, whose value is normally not significant for business. Thus my comment that is was not really a tax on profits. The 1997 tax reform introduced significant changes. Amongst the most important ones was establishing principles for the deduction of costs and expenses, rather than the very limited and restrictive list of deductible expenses previously in force, which significantly increased the effective tax rate.