On July 21, 2020, the IMF Technical Support Mission for Tax Policy was completed, which was held by video conference for almost three working weeks with the direct participation of representatives of the Ministry of Finance of Ukraine.
The scope of the Mission’s work included an analysis of recent changes in tax legislation on international taxation rules, in particular those introduced by the Law of Ukraine of 16.01.2020 № 466-IX “On Amendments to the Tax Code of Ukraine to improve tax administration, eliminate technical and logical inconsistencies in tax legislation “.
The experts considered the main tax innovations in the context of the implementation of the BEPS Action Plan: introduction of rules of controlled foreign companies, tools to prevent tax evasion and unjustified use of tax benefits; improving the rules for recognizing permanent establishments; improvement of transfer pricing control rules. The peculiarities of the possible implementation of the one-time voluntary declaration program in Ukraine, taking into account the experience of other countries, were discussed separately.
During the work, comments were provided on certain aspects of the implementation of these innovations, given the global experience in the application of these tax policy instruments. The experts’ proposals have practical value for the work of the Ministry of Finance and the State Tax Service on draft bylaws and clarifications on the practical application of tax innovations.