Rada proposed from 2015 to reduce VAT to 17%, income tax - to 16%

Ukraine's MPs have proposed reducing VAT from 20% to 17% and corporate income tax from 18% to 16% from January 1, 2015.

The initiative is contained in bill No. 4603 on amending the Tax Code of Ukraine (regarding tax rates), the author of which is the chairman of the Verkhovna Rada committee on taxation and customs policy, Vitaliy Khomutynnyk, who registered it in the parliament on March 28, 2014.

The document, in particular, proposes keeping the current preferential tax for IT companies at 5%.

In addition, the official proposes to legislate that the tax on VAT liabilities arising from January 1, 2011 until December 1, 2014 inclusive, stands at 20%.

According to the law of Ukraine on preventing financial catastrophe and creating prerequisites for the economic growth in Ukraine, VAT and income taxes are fixed at 20% and 18% respectively.