Tax Consulting
 The tax regulatory framework of Ukraine can be characterized as quite complicated and containing a significant number of ambiguous and contradictory provisions.
The practical application of any tax law since it becomes effective is then monitored by the Sate Tax Administration and its regional departments. This body, as a rule, applies quite a fiscal approach in its interpretations of legislation. It would not be a big surprise for a tax collecting body but this fiscal approach often depraves the motive and general idea of the law makers creating a gap between the wording of legislation and its practical application. In ideal law making process the practice should reveal all the defects of the wording and stimulate amendments to its current reduction narrowing the gap in this way. Such an approach makes the changes consistent and anticipated.
Unfortunately, there is no Tax Review Panel in Ukraine or any other professional body which would absorb and analyze all the practical issues associated with a particular tax rule. As a result, tax legislation gets often rewritten completely creating new problems instead of being just amended and improved.
The Ukrainian tax rules are not presented in one uniform Code but instead are gathered in at least of a dozen of separate legislation acts. Those laws then find their further explanations and practical treatments in hundreds of Resolutions, Decrees, Orders and Letters.
The main sources of tax legislation in Ukraine are listed below:
- Law on Value Added Tax;
- Law on Corporate Tax;
- Law on Tax Liabilities Settlements of Taxpayers to the Budgets and Special Funds;
- Law on Personal Income Tax;
- Law on System of Taxation;
- Decree of the President on Eased Tax, Accounting and Reporting Regime for Small Business.
Alt's tax advice is always integral. Our approach incorporates accounting, legal, economic and corporate issues in one general tax advice.
We provide a range of tax effective and innovative solutions which are in full compliance with existing regulations and directed to minimize the tax burden on client's business.
We also assist our clients to resolve disputes with the State Tax Administration through direct negotiations, appealing procedure within STA or independent courts resolutions.
The standard areas of taxation our tax department is dealing with on a daily basis are listed below:
Indirect taxes
Such indirect taxes as VAT, Excise tax and Customs duties have a significant effect on the gross margin and cash flows of the business. That's why the optimized supply chain and margin allocation within the corporate structure leads to cash-flow savings and profitability increase.
The Ukrainian VAT legislation for import/export transactions is so vulnerable to different interpretations that often one key word in the contract changes your VAT rate from 20% to 0% or vice versa.
Payroll and personal taxation
It does not matter whether you are a global employer or an individual obtaining personal income in Ukraine we are always available to provide you with a unique solution. We will assist you in structuring your employment and remuneration schemes as well as in introduction of bonus and evaluation systems. If you travel quite a lot to Ukraine or make personal investments here you can always rely on our professional expertise in finding the best tax solution for your particular situation.
International tax
In conditions of constantly and rapidly evolving international tax environment we present you a variety of creative ideas and cross-border solutions. One of the first challenges for a global business with developed corporate structure is to reduce the overall effective tax rate. For a foreign business when considering an investment project in Ukraine the tax effect may be the crucial factor for a final decision.
Our experience in all major industries of Ukrainian economy guaranties the most intelligent tax advice in complicated import/export commercial transactions. We also have a unique practical experience in developing the cross-border transfer pricing strategy for our clients.
Tax planning
In order not to have a tax liability in your tax return a big surprise at the moment of its signing any business should have a solid tax planning system. Ideally, the tax expense is to be controlled as part of the general budget vs. actual variance analysis. If such practice is introduced the amount of tax expense for a particular reporting period could be altered with a range of instruments.
Our experts can be engaged in development of that part of your information system that is responsible for tax planning and control.
Deferred tax
The deferred tax is an area of accounting where both tax and financial results are compared with each other to identify the temporary differences. To determine a deferred tax evaluation in balance sheet and its effect on the tax charge in income statement presumes understanding of its economic substance as well as skills in its practical calculation. For a business with diversified activities this evaluation may represent a quite material amount and have a significant effect on their financial result for a period and dividends policy.
The deferred tax is the most difficult area for Ukrainian accountants since its internal calculation has no documentary support and requires their personal evaluation. Due to the absence of any strict instructions how to derive this evaluation they often ignore it completely in their final accounts.
The experts of Alt's tax department will not just assist your accountant in calculating the deferred tax evaluation but introduce a special format and reconciliation procedure. Your accountant will then be trained to understand the format, objective of reconciliation and double entries.
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