Meeting with Olena Makeieva, Deputy Minister of Finance of Ukraine

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On February 25, Chamber Members took part in the meeting with Olena Makeieva, Deputy Minister of Finance of Ukraine, dedicated to the discussion of recent amendments to the Tax Code of Ukraine in regard to administration of VAT and CIT, deduction of SSC rate as well as Draft Law on implementation of Authorized Economic Operator (AEO) in Ukraine.

Olena Makeieva noted that one of the main goals for this year is to reform the State Fiscal Service of Ukraine, and experts of the Ministry of Finance of Ukraine on a daily basis analyze quick wins - quick steps in order to for simplifying the tax administration without amending the tax legislation for further implementation.

Tetyana Prokopchuk, Chamber Vice President of Policy, thanked the Ministry of Finance and personally to Olena Makeieva for ongoing dialogue with Chamber Member companies on the solution of problematic issues both in tax and customs spheres as well as noted the successful settlement of the issue of transferring of advanced CIT payments during payment of dividends in 2014.

Slava Vlasov, PwC, Chamber Tax Committee Co-Chair, moderated the panel discussion regarding the following issues:

  • reforming the SFS;
  • reviewing criteria and the procedure of risk business inspections;
  • problems with VAT budget refunds;
  • operation of two registers of applications for VAT budget refund and the next steps for the implementation of financial guarantees from banks in this direction;
  • problems with transferring of advanced CIT payments during payment of dividends in 2013;
  • reduction of rent rates on extracted gas etc.

Chamber representatives also shared with MinFin the proposals for "quick wins” in the way of simplification of tax administration, implementation of which do not require amendments to the tax legislation.

Oleg Chayka, KPMG-Ukraine, Chamber Tax Committee Co-Chair, has also enquired about the position of the Ministry of Finance on the right of the legal successors (surviving companies) to report and utilize the tax loss carry forwards of the predecessor companies, which were de-registered in 2015 or 2016 in the course of corporate reorganizations. From the side of the Ministry of Finance, this important tax issue was raised a number of times during discussions with the tax authorities and the SFS should sign a tax letter on this issue. The Chamber will follow up with the SFS, and, where necessary, will get back to the MinFin if this tax issue remains unresolved.

As a separate topic of the meeting was a discussion of the Draft Law on introduction of Authorized Economic Operators (AEO) in Ukraine which was moderated by Oksana Drozach, PwC, Chamber Customs Committee Co-Chair. Olena Makeieva made a general overview of this concept, planed simplifications for companies involved into international supply chain and criteria which the companies should meet to apply these simplifications.

Vladimir Pisar, Trade Facilitation Advisor, EUBAM, informed the participants about support from the EU side of the Draft Law developed by the Ministry of Finance of Ukraine, which main aim is to facilitate international trade and customs formalities for fair business. Moreover, Vladimir Pisar outlined in his speech that implementation of the AEO institution is the obligation of Ukraine within both the Association Agreement between the EU and Ukraine and the Trade Facilitation Agreement. This obligation has to be satisfied within 2016.

As a result, it was agreed that the Chamber on behalf of business community will continue working together with the Ministry of Finance of Ukraine regarding outlined issues for their speedy solution.