{
  "title": "Ukraine: Technical Assistance Report—A Follow-Up on Distributed Profit Tax, BEPS Implementation, Voluntary Disclosure Program, and Indirect Methods for Determining Taxable Income",
  "publication": "IMF Staff Country Reports, November 23, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2020/11/17/ukraine-technical-assistance-report-a-follow-up-on-distributed-profit-tax-beps-49897",
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  "summary": "Tax policy in Ukraine is engaged in two fronts at once. On one front, very significant work has been done over the years on the gradual improvement and updating of the tax system; on the other, it questions essential tenets of the existing system, exploring fundamental changes to it.",
  "sections": [
    {
      "heading": "Executive summary and context",
      "content": "- Tax policy in Ukraine is engaged in two fronts at once: gradual improvement and updating of the tax system, and exploration of fundamental changes to essential tenets of the existing system.\n- Modernization efforts include updating the international aspects of the income tax and upgrading the regime to OECD standards.\n- A strong policy debate advocates replacing the Corporate Profit Tax (CPT) altogether with a Distributed Profit Tax (DPT), generally referred to in Ukraine as the Exit Capital Tax (ECT).\n- The DPT/ECT concept: the system would not tax profits as they accrue to the corporation; instead, it would defer taxation to when the corporation distributes dividends to the shareholder."
    },
    {
      "heading": "Major themes covered",
      "content": "- Distributed Profit Tax (DPT) / Exit Capital Tax (ECT)\n  - Central idea: defer taxation of corporate profits until distribution as dividends to shareholders.\n- BEPS implementation and modernization of international income tax rules\n  - Upgrading the international income tax regime to OECD standards is a stated objective.\n- Voluntary Disclosure Program\n  - The report addresses elements related to voluntary disclosure mechanisms (no further details in the summary).\n- Indirect methods for determining taxable income\n  - The report follows up on indirect methods used to determine taxable income (no further details in the summary)."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subjects:\n  - Controlled foreign corporation rules\n  - Double taxation\n  - Income and capital gains taxes\n  - Legal support in revenue administration\n  - National accounts\n  - Personal income\n  - Revenue administration\n  - Taxes\n- Keywords:\n  - CFC rule\n  - Controlled foreign corporation rules\n  - CR\n  - domestic law\n  - double taxation\n  - Double taxation\n  - Global\n  - Income and capital gains taxes\n  - ISCR\n  - Legal support in revenue administration\n  - PEM resident\n  - Personal income\n  - tax authority\n  - tax burden\n  - tax return\n  - taxable income\n  - transfer pricing\n\nInternational Monetary Fund. Fiscal Affairs Dept. \"Ukraine: Technical Assistance Report—A Follow-Up on Distributed Profit Tax, BEPS Implementation, Voluntary Disclosure Program, and Indirect Methods for Determining Taxable Income\", IMF Staff Country Reports 2020, 302 (2020).\n\n---\n\n Content in this bundle\n\n- 1ukrea2020003\n  - 1ukrea2020003 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1ukrea2020003 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: November 23, 2020",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513561400.002",
    "Tax policy in Ukraine is engaged in two fronts at once: gradual improvement and updating of the tax system, and exploration of fundamental changes to essential tenets of the existing system.",
    "Modernization efforts include updating the international aspects of the income tax and upgrading the regime to OECD standards.",
    "A strong policy debate advocates replacing the Corporate Profit Tax (CPT) altogether with a Distributed Profit Tax (DPT), generally referred to in Ukraine as the Exit Capital Tax (ECT).",
    "The DPT/ECT concept: the system would not tax profits as they accrue to the corporation; instead, it would defer taxation to when the corporation distributes dividends to the shareholder.",
    "Distributed Profit Tax (DPT) / Exit Capital Tax (ECT)",
    "BEPS implementation and modernization of international income tax rules",
    "Voluntary Disclosure Program",
    "Indirect methods for determining taxable income",
    "Subjects:",
    "Keywords:",
    "**1ukrea2020003**"
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