Regarding novations in tax legislation

Verkhovna Rada of Ukraine adopted Law of Ukraine No. 3603-IX "On amendments to the Tax Code of Ukraine on improving online communication with taxpayers and clarifying certain legislative provisions" on February 23, 2024.

Law entered into force on March 16, 2024, except for some provisions that will enter into force on April 1, June 16, July 1, August 1, 2024, including:

- from March 16, 2024, there are following changes to the Tax Code of Ukraine (hereinafter – Code):

settlement of establishing tax benefits from land payment and tax on immovable property other than land plot in territories in respect of which decision has been made on the mandatory evacuation of population (decisions of village, settlement, city councils, military administrations and military-civilian administrations are mandatory);

broadening of possibilities of tax authorities regarding sale of property under tax lien through stock exchanges;

cancellation of liability for erroneous payment by the taxpayer of monetary obligation to another budget account (under condition of timely payment of monetary obligation to the budget);

non-proliferation of provisions of the Code regarding the increase of financial result before taxation in case of free transfer in favor of budgetary institutions of products, works, services in amount exceeding 4 percent of taxable profit of the previous reporting year, in cases of transfer of intangible assets by economic entities of state sector of economy to bodies of executive power to the sphere of management of which such entities belong;

adding list of recipients of charitable aid paid (provided) by benefactors, which is not included in the total monthly (annual) taxable income with such category as military personnel (reservists) who do not have status of combatants and family members of such military personnel (reservists) who died, died as a result of injury, contusion or mutilation;

giving the taxpayer a right, submitting application for state registration of changes to information regarding legal entity, to declare a desire to register as the VAT payer, single tax or to be included in Register of non-profit institutions and organizations;

settlement of issues regarding approval of standards for losses of tobacco products, tobacco and industrial tobacco substitutes, tobacco raw materials, liquids used in electronic cigarettes and fuel;

cancellation for payers of the minimum tax liability of limitation on the term for applying for reconciliation of data, which is currently thirty days from the date of delivery of tax notification-decision;

- from April 1, 2024:

addition of list of incomes, which are not included in the taxpayer’s total taxable income with cost of unregistered medicinal products provided (transferred) free of charge for benefit of patients participating in clinical trials, programs of extended access of patients to unregistered medicinal products and/or access programs of sub research subjects (patients) to the researched medicine after completion of clinical trial;

- from June 16, 2024:

providing taxpayers with opportunity to interact with the controlling body via video conference, in particular during the review of complaint materials and audit materials (order of such interaction will be regulated by relevant legal acts);

- from July 1, 2024:

shortening period of audits for determining amount of the value-added tax that is subject to budget refunding;

- from August 1, 2024:

regulation of procedure for interaction between tax authorities and the Central depository of securities and depository institutions authorized to service accounts of owners of company shares in accounting system of company shares, in terms of exchanging information about open accounts.