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1. Tax laws signed

According to Press Service of the President of Ukraine, on 28 December 2012 the President has signed the Law of Ukraine No.5518-VI “On Amendments to Some Legislative Acts of Ukraine on Further Improvement in Administration of Taxes and Levies” and the Law of Ukraine No.5519-VI “On Amendments to the Tax Code of Ukraine on Further Improvement in Administration of Taxes andLevies”.

Novelties

The Laws should enter into force on 1 January 2013. In particular,the Law No.5519-VI introduces the following novelties:

1. Excise duty on sale of securities and derivatives. The payers of the duty are the sellers, and the tax agents are the securities traders. The excise duty rate for securities is 1.5%, and for derivatives - 5-fold minimum non-taxable income of individuals per derivative;
2. Special corporate profit tax rate (10%) on transactions with securities, derivatives and corporate rights;
3. New rules for calculation of the tax object for transactions with securities, derivatives and corporate rights;
4. Restriction on carry forward into 2013 of accumulated losses related to transactions with securities;
5. Introduction of 'financial promissory notes' (to be used, inter alia, for VAT refund).

Our newsletter of 7 December 2012 provides a more detailed reviewof these changes.

It should be mentioned that our comments are based on the drafts ofthe laws. The final texts of these laws are not yet available to public.

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