Ukraine Government Slashes Income Taxes to a Voluntary 2% and Reduces Import Tariffs To Zero

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Whole much of the media focus has been on Western sanctions on Russia, Ukraine’s economy and business sector has been suffering even more. Foreign businesses and their employees have largely fled the country, while millions of Ukrainians are unable to attend work.

To keep basic infrastructure functioning and especially small-medium service (and other) enterprises, such as the ability to buy food and energy supplies, the Ukrainian Government has cut excise duty on all imported goods to zero.

Fuel, such as petrol for cars, has had VAT cut to 7% from 18%.

All other income taxes have been cut from 18% to 2% and placed under a ‘voluntary pay what you can’ notice with no obligation to pay at all. No tax inspections or audits will be carried out to verify any taxable income at this time, meaning the system is now completely based on national trust and patriotism.

Ukrainian banks are still functioning and remain connected to the global SWIFT payments network, although disruptions and delays to service can be expected in some areas due to damage. Check with Ukrainian recipients first before sending money.

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