The Cabinet of Ministers of Ukraine registered in the Verkhovna Rada draft law with amendments to the Tax Code providing for a new calculation of the rent rate for subsoil use. As regards the rent for the use of subsoil for the extraction of minerals, the bill proposes to expand the tax base by ensuring a unified approach to determining the object of taxation by classifying the extracted mineral raw materials in accordance with industry requirements in order to eliminate the ability of the payer to subjectively determine the cost of a mineral, and also introduces a differentiation of rates taxation of iron ores depending on the size of the average actual selling price determined as the average cost of iron ore according to the IODEX 62% FE CFR China index, according to information officially indicated by the world news agency Platts, and published on the official website of the Ministry of Economy.
As stated in the draft law, the object of taxation by rent for the use of subsoil for the extraction of minerals for each area of subsoil provided for use, as defined in the relevant special permit, is the volume of marketable output of a mining enterprise - extracted minerals (mineral raw materials).
The actual selling price for iron ores is determined by the central executive body implementing the state policy of economic development for the tax (reporting) period, as the average cost of iron ore according to the IODEX index 62% FE CFR China, listed in hryvnia per ton at the rate of the National Bank of Ukraine as of the 1st day of the month following the tax (reporting) period, according to information officially indicated by the world news agency Platts.
Rates of rent for the use of subsoil for the extraction of minerals for extracted minerals (mineral raw materials), the types of commercial products of a mining enterprise of which are approved by the conditions for mineral raw materials of the subsoil object (site), are established as a percentage of the cost of commercial products of a mining enterprise in such sizes:
- 3.50% if the average price of iron ore according to the IODEX index 62% FE CFR China, officially determined by the world news agency Platts, for the tax (reporting) period is $ 100 or less;
- 5.00%, if the average price of iron ore according to the IODEX index 62% FE CFR China, officially determined by the world news agency Platts, for the tax (reporting) period is more than 100 and does not exceed 200 US dollars inclusive;
- 10.00% if the average price of iron ore according to the IODEX index 62% FE CFR China, officially determined by the world news agency Platts, for the tax (reporting) period is more than USD 200.
In addition, the project provides for an increase in the tax rate for carbon dioxide emissions to 30 hryvnia per 1 ton.
In addition, the government proposes to grant the right to tax authorities to collect tax debt without going to court, to provide a tax lien on the sums additionally charged based on the results of inspections at the time of administrative or judicial appeal. The bill also contains a proposal to restrict the right of the head of the company to travel abroad until the tax debt is fully paid off, as well as to authorize the State Tax Service to receive a request for information from the taxpayer not only on the fact of an offense, but also on other issues related to taxation and possible violations.
The bill also provides for the taxation of personal income (18%) of income received from the sale of the third and subsequent real estate objects during the year.
