On 24 December 2015, the Ukrainian Parliament adopted the Law of
Ukraine On Amendments to the Tax Code of Ukraine and Some Other
Legal Acts to Balance Budget Revenues in 2016 (the
"Law"), which was signed by the President of Ukraine and
officially published on 31 December 2015.
The Law introduces certain amendments to the Tax Code of
Ukraine. Key changes, which specifically concern the banking sector
of Ukraine, are summarized briefly below:
New VAT rules for transactions on the sale of the property,
received by the bank in the course of foreclosure on such
property
It is not clear from the Law how these rules work. According to
comments of the representatives of the State Fiscal Service of
Ukraine, it is expected that the portion of the value of the
property sold by the bank, which is directed to the payment of the
debt under the loan will be VAT exempt. The remainder is taxed at
20 percent VAT in general order.
