Ukraine to join BEPS action plan early 2017
Ukraine from January 1, 2017 would become an official member of the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) led by the Organisation for Economic Cooperation and Development (OECD).
Ukraine's Finance Ministry reported on Wednesday that Minister Oleksandr Danyliuk on November 22 handed a letter to OECD Secretary-General Angel Gurria. This is the final phase for joining the project.
"The BEPS action plan is unified rules helping to combat speculations and creating equal conditions for all players. Ukraine's joining BEPS is a positive signal for investors. This will stimulate international trade and trigger our economic growth," the ministry said.
The ministry said that Ukraine's joining BEPS means that the country is obliged to implement four minimum standards: fight against tax avoidance related to allocation of special taxation regimes, prevent tax evasion in applying tax treaties, information disclosure about the use of aggressive tax planning schemes and increasing effectiveness of dispute resolution tools in application of agreements to avoid double taxation between countries.
Today many countries have large problems with tax payments, as national and international taxation principles have many discrepancies. Modern rules give many opportunities for speculation with tax rates, regimes and statuses in different countries to businesses, the ministry said.
The BEPS Action Plan has 15 actions to combat aggressive tax planning, including aligning transfer pricing outcomes with value creation, preventing the granting of treaty benefits inappropriate circumstances, designing effective controlled foreign company rules and country-by-country reporting.