The Prime Minister of Ukraine Nickolay Azarov hopes to implement the lowest tax rate in Europe through passing the new Ukrainian Tax Code. “Ukrainian taxes would be low, probably the lowest in Europe” – Azarov stated.
Due to the final version of Ukrainian Tax Code the right to single tax is given to those whose year turnover is lower than UAH 300 000. The taxes for medium-sized and big businesses will also be lowered. The Draft Tax Code envisages the reduction of income tax from 25% up to 16%. In particular, the income tax should be reduced from 2011 to 19% (current 25% – ed.), from 2012 to 18%, from 2013 to 17% and from 2014 to 16%.
Moreover, a zero income tax rate is suggested to small business for 5 years, to hotel industry for 10 years and light industry for 10 years as well. New Ukrainian Tax Code bans the import of second-hand clothes and exemption of income tax for promotion of innovative technologies.