Ukraine approves sweeping tax breaks to help businesses stay afloat

A family walks past a shopping centre damaged by recent shelling in Kharkiv on Tuesday, amid the ongoing Russia's invasion of Ukraine. AFP
A family walks past a shopping centre damaged by recent shelling in Kharkiv on Tuesday, amid the ongoing Russia's invasion of Ukraine. AFP
Short Url
Updated 15 March 2022

Ukraine approves sweeping tax breaks to help businesses stay afloat

Ukraine approves sweeping tax breaks to help businesses stay afloat

LVIV: Ukraine’s parliament approved measures on Tuesday to help Ukrainian businesses stay afloat during the war with Russia, including slashing taxes to a single 2 percent rate, Prime Minister Denys Shmygal said.

The new bill was backed by President Volodymyr Zelenskiy, who has called for the government to ramp up support for small and medium-sized businesses in particular.

The new incentives include a new single 2 percent tax rate for all businesses with turnover of less than 10 billion hryvnia ($338 million) compared with a previous value-added tax of 20 percent and 18 percent tax on profit, Shmygal said in a statement.

“I am confident the decisions will strengthen our economic front,” he said in a statement.

In a later video address, Shmygal also outlined other war-time stimulus measures including a loan program for farmers worth 25 billion hryvnias ($846 million).