New tax surprises by the Supreme Rada

This time there is a new draft-law at the Supreme Rada, entitled “On zero declaration”. The key-idea is – every Ukrainian resident is to declare not only his incomes but also his expenses. If such expenses are higher than the official income, one will have to pay income tax.

If the law is adopted, the system would work according to the algorithm: every citizen will be required to submit personally a so-called “zero declaration”, which is to demonstrate everything he owns – business, real estate, land, vehicles etc. However, SFS inspectors are not interested in sources of income – in the contrary, they will be interested in the next fiscal year in the odds between revenues (incomes from business, real estate, etc., which have been declared in the previous year) and the costs incurred. If expenses exceed income, then one will have to pay the tax.

The submission of the “zero declaration” is voluntary. So what is the essence of such legislative amendments? In short, the draft-law currently raises more questions than gives answers.