- Verkhovna Rada ratified a EUR 90 billion loan agreement for financial support.
- The Verkhovna Rada led an IMF mission to review Ukraine's fund facility and track required economic and structural reforms.
Ukraine Approves New Tax Rules, Reaching IMF Structural Milestone
What happened
The Cabinet of Ministers of Ukraine approved a draft law developed by the Ministry of Finance. This legislation introduces taxation rules for assets transferred outside Ukraine, a general anti-tax avoidance rule (GAAR), and rules addressing hybrid mismatches. The document also provides for an "exit tax" on asset appreciation if Ukraine loses the right to tax those assets.
From interfax.com.ua
Why it matters
The registration of this draft law with the Verkhovna Rada constitutes a structural milestone required by the International Monetary Fund's EFF program. The rules are designed to protect Ukraine's national corporate income tax system from tax evasion, tax base erosion, and the shifting of profits to lower-tax jurisdictions.
The Verkhovna Rada led an IMF mission to review Ukraine's fund facility and track required economic and structural reforms. Ukraine also ratified a EUR 90 billion loan agreement for financial support.
From interfax.com.ua
Who's involved
- Cabinet of Ministers of UkraineThe executive body that approved the draft law and implements the new tax rules.
- Ministry of FinanceThe ministry that developed the draft law regarding taxation and anti-avoidance.
- International Monetary FundThe international financial institution whose EFF program requires this tax reform milestone.
- Verkhovna RadaThe national parliament that must formally approve the new tax rules.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
Keep exploring
Part of
The Verkhovna Rada led an IMF mission to review Ukraine's fund facility and track required economic and structural reforms.Also in this story
- IMF monitors Ukraine's structural reforms and governance, scrutinizing lending practices regarding fund diversion in state companies.
- The World Bank, National Bank of Ukraine, and IMF are involved in servicing state debt and managing international reserves for Ukraine.
Within Verkhovna Rada ratified a EUR 90 billion loan agreement for financial support.
The entities involved
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Cabinet of Ministers of Ukraine
The executive of Ukraine, consisting of the prime minister and cabinet ministers.
Nothing else this week.
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Ministry of Finance
ministry of Israel
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International Monetary Fund
international financial institution