Ukraine plans to join the Organization for Economic Co-operation and Development`s Base Erosion and Profit Shifting (BEPS) from January 1, 2017.
According to the press service of the Ministry of Finance of Ukraine, a letter with the corresponding proposal was handed over by Ukrainian Finance Minister Oleksandr Danyliuk to Secretary General of the OECD Jose Angel Gurria Trevino.>
”Today, many countries are facing tax problems only because the principles of national and international taxation do not match each other. In particular, the current rules allow businesses to speculate tax rates, mode and status. Therefore, the OECD has developed recommendations to combat tax evasion,” the Ministry of Finance said.
The recommendations include 15 steps, including the improvement of the transfer pricing rules, combating tax evasion through international treaties, taxation of controlled foreign companies, the exchange of information.
”BEPS plan is a general regulation to fight speculation and create equal conditions for all players. Ukraine`s accession to the plan is a positive signal for investors,” the Ministry of Finance said.
As UNIAN reported earlier, in addition to the Action Plan on combating tax speculation, Ukraine also plans to join the investment committee of the Organization for Economic Co-operation and Development (OECD), which will allow Ukrainian business communicating with potential investors directly.