The Ukrainian Center for Independent Political Research (UCIPR) has prepared an analysis of the draft law "On Amendments to the Tax Code of Ukraine Regarding Bringing It into Compliance with the Law of Ukraine No. 4196-IX 'On Peculiarities of Regulating the Activities of Legal Entities of Certain Organizational and Legal Forms in the Transition Period and Associations of Legal Entities".
The draft law was developed by the Ministry of Finance of Ukraine in compliance with Law No. 4196-IX, which initiated the final stage of corporate law reform and provided for the termination of the Commercial Code of Ukraine. The document is primarily of a technical and legal nature, aimed at harmonizing the provisions of the Tax Code with the new regulatory system for legal entities.
At the same time, certain proposed amendments directly affect the activities of public associations, charitable organizations, creative unions, professional associations, and other non-profit organizations.
UCIPR experts note several positive provisions in the draft law. In particular, the document eliminates legislative contradictions following the repeal of the Commercial Code of Ukraine, clarifies tax terminology, introduces the concept of "non-entrepreneurial societies, institutions, and organizations," and provides for a transition period to bring constituent documents into compliance with the new legislation (a six-month period).
Nevertheless, the draft law carries a number of risks for the non-profit sector. Among them are the lack of clarity regarding mechanisms for retaining non-profit status, the absence of detailed procedures for interaction between non-profit organizations, the State Tax Service, and state registrars during the updating of constituent documents, as well as a potential additional administrative burden on public and charitable organizations.
UCIPR emphasizes that the proposed amendments do not alter the core activities of civil society organizations or the procedure for their taxation, but will require many organizations to update their charters and bring internal documentation into compliance with the new legislation.
According to the conclusion of UCIPR experts, the draft law can be supported conceptually as a necessary stage in the implementation of Law No. 4196-IX. However, it requires refinement regarding the transitional implementation mechanisms, which will minimize the administrative burden on the non-profit sector and ensure the continuity of its operations.
Read the detailed analysis at the link.
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Institutional support for UCIPR's activities is provided by the East Europe Foundation within the "Phoenix: Power of Communities" project, supported by the European Union. The content of the materials created is the sole responsibility of UCIPR and does not necessarily reflect the position of the East Europe Foundation or the EU.
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