The Ministry of Finance сontinues consultations with the business community on ATAD implementation

The latest round of consultations focused on hybrid mismatches and exit taxation.

The meeting brought together Deputy Finance Minister Svitlana Vorobei, international experts from EU4PFM, the OECD and the IMF, representatives of business associations, and the Reform Support Team at the Ministry of Finance. This was another in a series of consultations that have been taking place over the past several months as stakeholders work together on a draft law to align Ukraine’s tax legislation with the EU Anti-Tax Avoidance Directive (EU) 2016/1164 (ATAD).

The agenda covered two key areas:

• Rules for neutralising the effects of hybrid mismatches (Articles 9, 9a and 9b of ATAD, as amended by Directive (EU) 2017/952)
• Exit taxation (Article 5 of ATAD)

Participants also reviewed comments and feedback submitted by the business community. As in previous consultations, representatives of the Ministry of Finance, the Reform Support Office and international experts addressed each comment, provided clarifications and discussed possible solutions.

Paulius Majauskas, EU4PFM Key International Expert on Taxation, commented:

“Adopting legislation to implement ATAD into Ukraine’s national legal framework will significantly and demonstrably strengthen the country’s readiness for EU accession. It is a clear step towards the next stage of European integration. We fully recognise that the formal requirements for implementing these rules are quite demanding. However, thanks to constructive and open dialogue – exactly like the discussion we had today – I am confident that Ukraine will find a balanced solution that complies with EU standards while ensuring fair taxation and providing businesses with predictable and transparent conditions. By taking these necessary steps together with the business community, we are ensuring that Ukraine will be fully prepared to join the European single market and benefit from all the opportunities it offers.”

The draft law on ATAD implementation was prepared by the Ministry of Finance with the support of international experts as part of Ukraine’s commitments on its path towards EU membership. The consultations are being held with the expert and technical support of EU4PFM.