The tax reform envisages that the simplified tax regime will be substantially tightened from January 1, 2018, which provides a major loophole in the country's tax net, according to a memorandum of cooperation between Ukraine and the International Monetary Fund (IMF).

According to the document, the government will refrain from any major tax cuts and will not introduce new tax exemptions and amnesty schemes.

"We will also refrain from introducing preferential tax treatment—other than for local property taxes—for companies operating in industrial zones," reads the document.

According to the memo, to allow the country to efficiently implement the harmonization of filing and payment of social security contributions and personal income tax, the government will submit legislation to parliament for adoption by end-April 2017.

The Ukrainian government expects parliament to adopt by end-December 2017 legislation that will grant the SFS powers to use indirect methods to ascertain tax and social security contribution obligations.

The government will legalize amber mining and gambling, which should provide additional revenues to the budget not later than in 2018.

Further tax reform will aim to increase the efficiency and equity of the tax system.