Such news was told by the Ministry of Finance of Ukraine after transfer on November 22 by the Minister of Finance of the official letter on accession to the General secretary of OECD (Organization for Economic Cooperation and Development) which is the author of this Plan.
The plan of BEPS (Base Erosion and Profit Shifting) was developed for fight, which connected with tax evasion and creating of equal conditions for all taxpayers companies. In general the plan of BEPS provides large-scale reorganization of the existing system of the cross-border taxation. It contains 15 points of counteraction to aggressive tax planning among which there are enhancements of rules of transfer pricing, the income taxation of the controlled foreign companies, prevention of avoiding taxation by international treaties, exchange of financial information, etc.
With acquisition of official membership in BEPS Ukraine will undertake the liability to implement the minimum standard of the Plan including four points: fight against the tax speculation connected with use of special tax regimes; avoidance of abuses in case of application of tax conventions; disclosure of information on using schemes of aggressive tax planning; improvement of efficiency of mechanisms dispute resolution concerning application of contracts on avoidance of double taxation between countries. In practice it means that Ukraine should make considerable changes to the legislation which meanwhile and so doesn’t conform to requirements of OECD for entry into the Plan of BEPS.
Accession to the Plan of BEPS is a part of strategy implementation of Ukraine on deoffshorization within which it is planned accession to the agreement on the exchange of information. For investors it is a good signal, however for the Ukrainian entrepreneurs it means the need to review business strategy and prepare for the new rules of the game.
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