“Changes are planned to be made to the Budget and Tax Codes, which will allow personal income tax (PIT) to be calculated based on the location of enterprises, and not based on the place of registration of their legal entities. This is intended to improve the mechanism of horizontal alignment of local budgets and promote the economic development of communities. Such changes are one of the 150 indicators of the Ukraine Facility program. Without their implementation”, — write on: ua.news
Changes are planned to be made to the Budget and Tax Codes, which will allow personal income tax (PIT) to be calculated based on the location of enterprises, and not based on the place of registration of their legal entities. This is intended to improve the mechanism of horizontal alignment of local budgets and promote the economic development of communities.
Such changes are one of the 150 indicators of the Ukraine Facility program. Without their implementation, Ukraine will not be able to receive EUR 50 billion in aid. This was announced by the head of the Verkhovna Rada Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning, Olena Shulyak.
She emphasized that the issue of local tax administration has long been a painful issue for local self-government bodies. The main problem is that the tax is paid at the place of registration of enterprises, and not at the place of their actual activity. This deprives the community of incentives to attract business and develop the economy.
Different communities have different positions regarding the payment of personal income tax. Suburban areas are in favor of paying tax at the place of residence of employees, while cities insist that personal income tax is calculated at the place of business. Currently, the parliament is leaning towards the last option, since there is no technical possibility to administer the tax by place of residence yet.
According to Shulyak, fiscal decentralization is an important motivating factor for local communities. It will make it possible to ensure stable revenues to the budgets, support their capacity and implement important projects. In addition, the harmonization of tax legislation of Ukraine with international standards is envisaged, which includes a review of the distribution of tax revenues and the search for a balance between income and expenditure at different levels of government.
In addition, the Verkhovna Rada adopted draft law No. 11410 in general on the deprivation of state awards for traitors to Ukraine.
Also, the Verkhovna Rada of Ukraine adopted in the first reading draft law No. 12178, which provides for the liquidation of medical and social expert commissions (MSEK).
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