Government of Ukraine Complies with IMF Conditions

by Olha Povaliaieva
Monday, December 6, 2021
Government of Ukraine Complies with IMF Conditions

On December 1, a special department of the Tax service will start working in Ukraine, which will check taxpayers

According to the Ministry of finance, this provision was spelled out in a new memorandum with the IMF.

Individuals whose income and expenses do not coincide will be required to name the source of the money and calculate the tax liability.

"Until December 1, 2021, we will form a special department of the State tax service, which will analyze the tax behavior of individual payers," the Ministry of finance reports.

From September 1, 2021, to September 1, 2022, a "tax amnesty" is in effect in Ukraine, which provides citizens of the country with the opportunity to pay 5-9% of income tax without a specified source. Those who decided not to declare shadow funds must pay the total tax. We remind you that personal income tax plus military duty is 19.5%. Hence, we conclude that checking each taxpayer individually is a logical consequence of the tax amnesty.

According to Daniil Hetmantsev, a representative of the Committee on finance, tax, and customs policy, Ukraine already has an administration that analyzes citizens' property, income, and expenses. For example, a citizen was named who has several apartments, but officially the citizen is unemployed. We conclude that a citizen leases his property and does not pay taxes for it. That is, he lives at the expense of shadow funds.

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