Office Of Large Taxpayers: Losses Of State Budget From Introduction Of Tax On Withdrawn Capital Likely To Make UAH 80 Billion

The Office of large taxpayers of the State Fiscal Service (SFS) believes that introduction of a tax on withdrawn capital will cut revenues to the state budget by UAH 80 billion.

Yevhen Bambizov, the head of the Office of large taxpayers, said this in his interview with Ukrainian News Agency.

"I would be careful with the introduction of the tax on withdrawn capital. Firstly, in 2017 we had unprecedented growth in declared corporate income tax. It grew by 46% over 2016. The payment of the tax grew by 30%. This is a serious sum. Thus, calculations given by some experts that the losses of the state budget can make UAH 20-30 billion are not feasible. If the growth in declaration and payment of corporate income tax preserves, the losses of the budget can make UAH 80 billion or more," he said.

He notes that the tax on withdrawn capital will replace two more taxes.

"Not only the corporate income tax, but also the tax on payment of income to non-residents or the tax on repatriation. For some reasons nobody mentions this. Meantime, large business pays some UAH 5 billion of the repatriation tax a year," he said.

As Ukrainian News Agency earlier reported, President of Ukraine Petro Poroshenko has stated that a tax on withdrawn capital might be introduced staring 2019, at the same time stating that the state budget losses will amount to approximately UAH 20-23 billion.

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