The President signed the Law harmonizing the provisions of the Tax Code with the new version of the Customs Tariff of Ukraine

It is worth reminding that the Law of Ukraine "On the Customs Tariff of Ukraine" dated 19.10.2022 No. 2697 (hereinafter - Law No. 2697) established a new version of the nomenclature of the Customs Tariff of Ukraine, which is based on the new version of the Ukrainian Classification of Goods for Foreign Economic Activity, based on the Harmonized Commodity Description and Coding System version 2022 and the Combined Nomenclature of the European Union 2022, which are applicable from 1 January 2023.

At the same time, the Law of Ukraine dated 04.06.2020 No. 674-IX "On the Customs Tariff of Ukraine" (hereinafter - Law No. 674) was recognized as invalidated as of January 1, 2023.

Certain provisions of the TCU contained codes of goods in accordance with the 2017 version of the Ukrainian Classification of Goods for Foreign Economic Activity and required amendments accordingly.

The Law of Ukraine No. 3553-IX dated 16.01.2024 eliminates inconsistencies in the coding of goods, including excisable goods, and simplifies the administration of VAT, excise tax, corporate income tax and personal income tax.

On February 8, the President signed Law No. 3553-IX.

The text of the law has not yet been made public or published.

As noted by the authors of the basic draft law No. 10321-1 dated 21.12.2023, the Law provides for amendments to the TCU in the following areas:

► making technical amendments to replace the concept of "fixed assets" with the concept of "fixed assets";

► exclusion from the list of corporate income tax rates applicable to non-resident income of the 20% rate applied to non-resident income for the production and/or distribution of advertising, due to the 2nd exclusion of the provision on taxation of such income from the TCU.

The relevant amendments were introduced by the Law of Ukraine No. 1525-IX dated 03.06.2021 "On Amendments to the Tax Code of Ukraine on Abolition of Taxation of Income Received by Non-Residents in the Form of Payment for Production and/or Distribution of Advertising and Improvement of the Procedure for Taxation of Value Added Tax on Transactions for the Supply of Electronic Services to Individuals by Non-Residents" and came into force in July 2021;

► replacement of the term "authorized capital" with the term "statutory fund";

► bringing the terminology in line with the legislation on rehabilitation in the healthcare sector by replacing the words "rehabilitation institution" with the words "rehabilitation facility" for a clear and unambiguous interpretation of the law.

The Law is expected to enter into force on the first day of the month following the month of publication.