#Украина Новый отчёт от МВФ по налоговым вопросам
#Ukraine IMF Technical Assistance Report—A Follow-Up on Distributed Profit Tax, BEPS Implementation, Voluntary Disclosure Program, and Indirect Methods for Determining Taxable Income
📂 https://www.imf.org/-/media/Files/Publications/CR/2020/English/1UKREA2020003.ashx
📌There is a strong push from some quarters of the policy debate to do away with the Corporate Profit Tax (CPT) altogether. The central idea is to replace it with a Distributed Profit Tax (DPT), generally referred to in Ukraine as the Exit Capital Tax (ECT). In essence, this system would not tax profits as they accrue to the corporation, deferring the tax to when the corporation distributes dividends to the shareholder.
📌A key message of this report is on sequencing indirect methods for estimating taxable income and the Voluntary Disclosure Program (VDP). The indirect method should increase the perception of risk and this will encourage taxpayers to subscribe to a VDP. This means that the indirect method should have access to information independently of the VDP. Sequencing the instruments, the other way around would probably not work effectively. However, the indirect method could be legislated to enter into force deferred by one year, opening a window for the VDP to be in effect.
📌Overall, the international tax reforms are well drafted and comprehensive in their coverage. Some recommendations are made in this Report to improve the technical detail of the rules on controlled foreign companies (CFCs), permanent establishments (PEs), indirect transfers of immovable property, and transfer pricing (TP).
📌A new test of Ukrainian residence of legal entities is included in the UTC based on the place of effective management (PEM) of the legal entity being in Ukraine. The test applies in addition to the existing residence test based on place of incorporation. A foreign-formed legal entity with its PEM in Ukraine can opt to be treated as a resident. The problem is, importantly, that a PEM resident is taxed only on Ukraine-source income. This has the (probably unintended) consequence of opening up opportunities for avoiding the CFC rules. Because of the serious risks to the tax base and the undermining of the CFC rules, it is recommended that the PEM residence test is repealed. Newly enacted CFC rules, though comprehensive and generally well designed, have a few “weaknesses”. Thus, the CFC legislation will require some amendments.
📌A taxing right over gains arising from indirect transfers of immovable property has been included in the UTC. This is an important amendment that closes a current loophole (...)
📌Transfer pricing rules were improved considerably as well, although there is still some room for improvement. The report discusses four transfer pricing topics: commodity pricing, business restructuring, thin capitalization and, more importantly, the adoption of the business purpose test.
📌Some of the issues identified here relate to some imprecise, or one-sided or incomplete definitions. Many would have been corrected with the version of Bill 2524 that was reviewed by this mission. However, it remains to be seen how much of the preliminary Bill remains in the final version approved by Rada.
📌The most salient issue here is the adoption of the business purpose test for all transactions with non-residents.
#Ukraine IMF Technical Assistance Report—A Follow-Up on Distributed Profit Tax, BEPS Implementation, Voluntary Disclosure Program, and Indirect Methods for Determining Taxable Income
📂 https://www.imf.org/-/media/Files/Publications/CR/2020/English/1UKREA2020003.ashx
📌There is a strong push from some quarters of the policy debate to do away with the Corporate Profit Tax (CPT) altogether. The central idea is to replace it with a Distributed Profit Tax (DPT), generally referred to in Ukraine as the Exit Capital Tax (ECT). In essence, this system would not tax profits as they accrue to the corporation, deferring the tax to when the corporation distributes dividends to the shareholder.
📌A key message of this report is on sequencing indirect methods for estimating taxable income and the Voluntary Disclosure Program (VDP). The indirect method should increase the perception of risk and this will encourage taxpayers to subscribe to a VDP. This means that the indirect method should have access to information independently of the VDP. Sequencing the instruments, the other way around would probably not work effectively. However, the indirect method could be legislated to enter into force deferred by one year, opening a window for the VDP to be in effect.
📌Overall, the international tax reforms are well drafted and comprehensive in their coverage. Some recommendations are made in this Report to improve the technical detail of the rules on controlled foreign companies (CFCs), permanent establishments (PEs), indirect transfers of immovable property, and transfer pricing (TP).
📌A new test of Ukrainian residence of legal entities is included in the UTC based on the place of effective management (PEM) of the legal entity being in Ukraine. The test applies in addition to the existing residence test based on place of incorporation. A foreign-formed legal entity with its PEM in Ukraine can opt to be treated as a resident. The problem is, importantly, that a PEM resident is taxed only on Ukraine-source income. This has the (probably unintended) consequence of opening up opportunities for avoiding the CFC rules. Because of the serious risks to the tax base and the undermining of the CFC rules, it is recommended that the PEM residence test is repealed. Newly enacted CFC rules, though comprehensive and generally well designed, have a few “weaknesses”. Thus, the CFC legislation will require some amendments.
📌A taxing right over gains arising from indirect transfers of immovable property has been included in the UTC. This is an important amendment that closes a current loophole (...)
📌Transfer pricing rules were improved considerably as well, although there is still some room for improvement. The report discusses four transfer pricing topics: commodity pricing, business restructuring, thin capitalization and, more importantly, the adoption of the business purpose test.
📌Some of the issues identified here relate to some imprecise, or one-sided or incomplete definitions. Many would have been corrected with the version of Bill 2524 that was reviewed by this mission. However, it remains to be seen how much of the preliminary Bill remains in the final version approved by Rada.
📌The most salient issue here is the adoption of the business purpose test for all transactions with non-residents.