Memorandum with the IMF: the Ukrainian Government committed to abolishing the simplified system with a tax of 2%

Author:
Oleg Panfilovych
Date:

The Cabinet of Ministers of Ukraine committed to cancel the simplified tax regime of 2% from July 1, 2023.

This is stated in Ukraineʼs memorandum with the International Monetary Fund.

The government undertook to submit three draft laws to the Verkhovna Rada. They will concern the cancellation of the moratorium on tax audits, the cancellation of the simplified taxation system in the form of a single tax of 2% and the restoration of the pre-war regime for such taxpayers. In addition, it will be about returning responsibility for non-use of cash registers.

The government should also prepare a reform of the social protection system to ensure targeted, adequate and effective social assistance to the population, taking into account the needs of new categories of vulnerable groups.

In consultation with the IMF, the government should prepare a Terms of Reference describing the methodology and procedures for diagnosing the state of banks, their capital and determining priorities in dealing with non-performing loans.

In addition, the government needs to appoint the supervisory board of Naftogaz on the basis of transparent and competitive selection procedures and bring it into full working order.