The Ukrainian parliament has amended the Tax Code of Ukraine on exempting the income of foreign investors received from transactions with government and local securities from taxation.

Draft law No. 2931 on amendments to the Tax Code regarding the taxation of non-residents' income from debt liabilities was supported by 242 lawmakers last week.

According to an explanatory note to the document, the legislative base should be amended in part of exempting the incomes of investors received from transactions with government and local securities from taxation to attract state secured credits for the realization of investment and other projects by Ukrainian residents.

These rules applied for the past 15 years until amendments to the Tax Code that took effect on January 1, 2015 were passed.

"The changes dissatisfied investors (creditors) of Ukraine, they affect their decisions on the purchase of Ukrainian securities, investing in the Ukrainian economy and lead only to the increase of the cost of borrowing," reads the note.