The Cabinet of Ministers of Ukraine, at its meeting on Wednesday, will consider a draft Law of Ukraine On amendments to the Tax Code of Ukraine. After approval by the Gov’t members the anti-corruption bill will be submitted for consideration to the Verkhovna Rada of Ukraine.

The document was presented and discussed during a meeting chaired by Prime Minister of Ukraine Volodymyr Groysman on Monday, with the participation of members of the Government, regulatory bodies, MPs of Ukraine from line committees of the Verkhovna Rada, entrepreneurs, business associations and public organizations.

A joint anti-corruption bill of tax changes is aimed to simplify life for businesses and to remove the obstacles that hamper entrepreneurs to work and to develop. In particular, the document provides for the simplification of tax administration that will enable to reduce costs and time for entrepreneurs. Another goal is to lessen the potential for manipulation by the SFS and, consequently, the pressure on businesses, to create equal and clear rules for business, and to provide conditions for the development.

Key tax changes include the introduction of a tax holiday of five years for newly established small businesses, transparent VAT refunds through a single registry and transfer of databases from the State Fiscal Service to the Ministry of Finance.

Amendments in the tax law are called to change the situation regarding doing business in the country for better, said the Prime Minister opening the meeting to discuss draft amendments and added to ensure the ease of doing business is a key task for the Government.

Volodymyr Groysman stressed that business and investment "come" where there are common rules for everyone, predictable environment, while all contacts with authorities regarding licensing procedures, fiscal issues and tax administration are open, transparent and understandable for all participants of the process. In this context, one of the essential objectives to be addressed is changes in the tax law – the establishment of uniform "rules of the game" for everyone, urged the PM.

Separately, the Prime Minister emphasized that changes in tax law should encourage de-shadowing of the economy. According to minimal estimates, the sum worth about a trillion hryvnyas is currently in the informal economy in Ukraine.

"We need to create proper tools allowing to get the resource out of the shadows to make it work for the benefit of our state and most importantly, that we have provided an opportunity to develop [businesses]", said Volodymyr Groysman.

Legislative reforms in the tax sector were also designed to trigger the economic growth in the country and preserve a balance of interests of businesses and the Government, said the Prime Minister. Besides, simplifying taxes should be connected simultaneously with responsibility.

During the presentation of the bill the Minister of Finance stressed that the proposed tax changes would create normal conditions for businesses and improve the investment climate, what is viewed as the basis for economic development of the country.

"Our joint package of anti-corruption tax changes doesn’t just solve the ambiguity of tax legislation, but constitutes a very important part of the reform of the SFS, as it actually eliminates the tools for systemic corruption and abuse in the tax field", stressed Olexandr Danyliuk.

The meeting participants discussed main provisions of the proposed changes, put forward their proposals and comments. During the event, all business associations and NGOs experts agreed on the anti-corruption bill to improve the tax system. Earlier the elaborated changes have already been publicly supported by leading business and public associations, such as: American Chamber of Commerce in Ukraine, the Ukrainian Union of Entrepreneurs of SMEs the Fortress, European Business Association, Ukrainian Entrepreneur Union (UEU), Ukrainian Business Association, Chamber of Commerce and Industry of Ukraine, Chamber of Tax Advisers, the Business Ombudsman Council of Ukraine, the Ukrainian League of Industrialists and Entrepreneurs, a public platform "Taxes for economic freedom”, which consists of 17 associations, the Coalition For a liberal tax reform," which includes 15 associations, as well as the Union of public experts of the Reanimation Reform Package, which includes leading research centers and NGOs.

All the present at the meeting accentuated an "unprecedented" level of openness of the Ministry of Finance while elaborating the amendments in tax legislation in the working groups.

In turn, the Prime Minister noted that the work on the tax changes had been open and transparent. Everyone could participate, submit proposals, which were considered by relevant working groups.