Archive for August 14th, 2010

h1

The Tax Code……Again

August 14, 2010

Well dear readers, as I wrote some weeks ago, the proposed new Tax Code that is still out for public discussion and input, will not be signed by the President in its current guise.

Interfax-Ukraine

The Tax Code, which is to be adopted in the autumn of 2010, should contain a section on real estate taxes, as this is a requirement of Ukraine President Viktor Yanukovych, First Deputy Head of the Presidential Administration Iryna Akimova has reported..

“A decision should be made once and for all,” she told reporters in Kyiv on Wednesday.

Akimova noted that the tax is complicated, therefore its rate and other aspects of its implementation, in particular, their terms, should be subject to further discussion, but the need to include property tax in tax legislation is clear.

According to Akimova, debates are continuing concerning the implementation of tax on deposits and a progressive scale of individuals’ incomes taxation.

Akimova said international experience shows the benefit of a tax on deposits, but there is a fear of negative reaction from the public, taking into account the recent financial crisis, therefore the terms of the tax’s introduction could be subject to discussion.

As reported, the draft tax code after its approval at first reading lacks tax on property, deposits and a progressive scale of individuals’ incomes taxation.

According to Vice Premier Sergiy Tigipko, a tax on property could be introduced with a zero rate at the initial stage. The possibility of introducing a 5% tax on deposits is being discussed with the aim of equalizing the conditions of taxation with other investment incomes.

Considering the amount of high value property (by way of property value or the land it sits on despite being empty and derilict) this will upset many RADA members holding such property…….again as I have said before.

It will be very interesting to see how this particular part of the tax law pans out…….especially as I own two houses and a few apartments here.

If it is agressive in nature then an already stagnant retail market will be further swamped with sellers trying to dump assets which will suddenly start to cost them money if standing empty.

%d bloggers like this: