The Association “Ukrainian Agribusiness Club” salutes common initiative of the Cabinet of Ministers of Ukraine on issues of taxation legislation, Supreme Council of Ukraine and the Ministry of finance of Ukraine concerning urgency of tax law optimization, including aspects of agro business. Along with, the UCAB’s Tax Committee has issued drafted project of changes to tax legislation, which are designed to simplify co-work of agro business entities and authorities. The UCAB’s proposals, related to the Tax Code changes’ introduction, intended to overcome a list of certain systematical problems which have been acknowledged by a large number of agribusiness’ representatives and local citizens of rural areas. In particular, The Tax Committee of UCAB has issued next proposals:

-       to exclude from the list of real estate taxation objects kindergartens, schools, village clubs and other social infrastructure’s objects of rural areas, also to remove from the list of commercial real estate taxation such objects as buildings and installations for agricultural purposes with no tie to the type of ownership subject;

-       to allow co-generation and alternative resources electric power companies to conduct business under 4^th group rule of unified tax framework with a certain list of limitations;

-       to introduce a list of agro products specifications concerning taxation excluding animals and plants industries’ by-products;

-       to systemize all the issues dedicated to payments of income taxes’ amounts reckoned by legal entities and its subordinated entities for benefiting individuals by the right of land lease (or the right of sub tenancy), housing leasing (rent) of real estate to certain budget tied to localization of such real estate and particularly lands under cultivation;

-       currently to cancel fines for estimation and accuracy fulfillment procedure order violation in declaration concerning non-housing real estate taxation;

-       to cancel mandatory non-housing estate taxation for entities of 4^th group under unified tax framework;

-       to change the approach of procedure concerning estimation of VAT taxation basis considering goods and services sales under price of purchase, or price of cost, to include for taxation basis exceptionally a share of goods’ and services’ costs which forms tax credit.

“The list of indicated proposals has no any negative influence on tax revenue amount and devoted only to the structure of tax administration, - said Taras Vysotskyi, general director of the UCAB Association.” – Introduced draft of changes is intended to support corruption cutting and to rise of transparency in business-authority co-work. We sincerely hope that implementation of indicated purposes will be the final taxation framework reform regarding agribusiness in perspective of at least five years. And it would be wrong to conduct such a reform avoiding all proposals dedicated to improve agro business framework”.