On June 26, PETERKA & PARTNERS Ukraine and the Embassy of Denmark in Ukraine jointly held the TAX REFORM IN UKRAINE: EFFECTS ON CROSS-BORDER TRANSACTIONS webinar for Danish businesses active in Ukraine.
As the recent Tax Reform brings with it many novelties to Ukrainian legislation and thus raises a number of concerns among foreign businesses, the red-flag changes to the Tax Code of Ukraine and their effects on the business community were identified during the webinar.
We touched upon Permanent Establishment risks; the controlled foreign company (CFC) concept; restrictions on cross-border trading activities (the constructive dividend concept and business purpose test); and new tax rules for passive income pay-outs and investment operations.
Special focus was given to Danish businesses with respect to the Denmark-Ukraine Double Tax Treaty.
We are pleased to be able to contribute to the awareness of Danish businesses regarding any potential challenges entailed by the Tax Reform in Ukraine.