President of Ukraine

President invited business representatives to discuss the introduction of a new income taxation model in Ukraine

12 March 2018 - 18:45

President invited business representatives to discuss the introduction of a new income taxation model in Ukraine

“I am proud that in conditions of Russian military aggression, Kremlin’s trade war and Moscow’s transit blockade, Ukraine avoided default and bankruptcy, found and expanded alternative markets and restored economic growth,” President Petro Poroshenko said in a meeting with representatives of national and foreign business.

The Head of State emphasized that he, Prime Minister and Government were planning to achieve higher rates of growth. “We will make maximum efforts to speed up this growth and our meeting is dedicated to that,” he noted.

According to the results of the interactive voting, which took place among the companies- members of the American Chamber of Commerce, last year 64% of companies increased their business. And 83% of companies count on growth this year.

“This is a bold optimism and faith in the economic future of Ukraine. And the most important thing is almost every company increased salaries, although for a different percentage. These indicators describe the quality of changes in the country better than any speeches or emotions,” he added.

The President reminded that several important laws had been approved and the adoption of some other draft laws had been initiated.

According to him, one of the top priorities is struggle against corruption. “We can state that absolutely independent anticorruption institutions and infrastructure have been established. Nobody doubts the independence of NABU and SAP from any political institutions,” he added.

The President expressed confidence that those steps demonstrated radical changes in society.

He also reminded that the Verkhovna Rada had supported his bill on the Anticorruption Court and expressed confidence that the Parliament would not delay the consideration of that document in the second reading. "I promise you that I will do everything that depends on me for this bill to be adopted in the near future," he said.

The Head of State also noted that in early March he had signed the Law on Privatization, which is “extremely important for improving the investment climate”. It creates new transparent conditions for privatization, which will attract investors.

In addition, the President invited business representatives to discuss the introduction of a new model of income taxation in Ukraine - taxation of distributed profits of the company. "I appeal to you, because as President, I'm sure that the Government needs your help with arguments," he added.

"I believe that on this occasion we need an honest discussion with our foreign partners and business associations. It's not just about taxes. It is about a new philosophy. We are protecting small and medium businesses with this bill. It means significant simplification of accounting: you pay taxes for the sum you withdrawn. What is left goes to the investment in business," he said.

The Head of State also noted that he was ready to compromise on that issue: "On the first stage we can spread this on small and medium business only in order to find compromise with foreign investors. But this worked 100% positively in many countries, including Georgia, Estonia".

According to the President, such a new tax policy will fundamentally change the investment climate. "It dramatically stimulates investment. Why should you withdraw money? Contribute them to the development of production. I think we have to act decisively on this. This is our common change in the investment climate in the state," Petro Poroshenko summed up.