As every year, additions and amendments were envisaged in the Tax Code for the next year – 2024.  The expected changes will affect, in particular, financial and capital markets, healthcare, agriculture, tourism, transport and other general issues. We would like to highlight the most important draft changes:

  1. The time the payment is received in the VAT deposit account shall also be treated as VATable transactions;
  2. The criteria of determination of risky taxpayers will be reduced as well as procedure and conditions of removal from the list of risky taxpayers will be determined.
  3. The withholding tax rate for dividends paid by the resident enterprise will be reduced (to 5%);
  4. The tax benefits for the agricultural sector, to be expired in 2024, will be extended further for additional 3 years;
  5. The norms and procedure for deduction from income the representation expenses, housing and food expenses related to employees, as well as provision of certain products and other equivalent goods provided to workers working in harmful and other severe conditions will be determined.
  6. The provision the profit tax exemption amount related to the payments of social nature transferred to the special funds and other organizations that operate in the field of science, education, health, sports and culture that meet certain criteria, will be increased (to 15%);
  7. The mortgaged property and land taken by credit organizations in exchange for outstanding debt will be exempted from property and land tax, respectively, within 2 years of their balance;
  8. Banks recognized as bankrupt will have the right to treat special reserves as tax deductible expenses (to be approved by the Cabinet of Ministers);
  9. Certain goods (with the exception of goods specified in article 3.5 of Law «On non-cash settlements», as well as real estate, automobile transport and movable property) purchased from not registered individuals supported by purchase orders or purchase of goods supported by cash cheques (receipt) will be treated as deductible expenses from income at the rate of 2% of the highest amount of the taxpayer's income or expenses for each year.
  10. Repair expenses of fixed assets that are not on the lessee's balance sheet and not offset by rental fees (or expenses not reimbursed by the lessor) will be deducted from income by amortization in proportionally amounts to years during the term of the contract, but not less than 5 years.
  11. Exemption from VAT on the import of fixed assets that are the object of a leasing contract will be determined;
  12. Persons engaged in cargo transportation by vehicles owned or used by them, can no longer be the simplified taxpayers.
  13. The amount of truck repair expenses for taxation purposes will be increased to 8%.


We would like to emphasize that the above is only a draft and some other additions or revisions could be made.

26 October 2023
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