Ukraine is getting ready for reforms

25.11.2011 A few days ago the Government of Ukraine declared its firm intention to introduce further effective measures to control the operations involving offshore companies. It should be noted that Cyprus – that often appears and disappears from the list of Ukraine offshore jurisdictions - this time is not included in the list. However, the Cabinet of ministers will carry out all the necessary procedures to control and monitor the business with this EU member state (in particular, it is planned to establish a special department).
Effective measures to control the operations involving offshore companies will include: expanding the list of offshore jurisdictions from 33 to 68 and the taxation rate of 12% on transactions with companies in these countries, this tax will be transferred to the pension fund of the country.

Expert’s opinion

“Ukraine is preparing a package of effective measures to strict control procedures and monitoring of the operations involving offshore zones. Although Cyprus is not included in the list of these jurisdictions, the work with companies of this country will be under the mentioned procedures. Taking into consideration the existence of additional tax on transactions with offshore companies and expanding the list of related jurisdictions, all this emphasizes that Ukraine is looking for sources of constant state budget replenishment”.

On the basis: www.mlsp.gov.ua

Andrianova Irina ( the lawyer of international consulting department of Honest&Bright)