On March 30, 2021, the Parliament of Ukraine conceptually supported the capital tax amnesty proposed by the President and adopted in the first reading a package of relevant draft laws (№5153, 5154, 5155 and 5156). The official declaration of individuals' so-called 'shadow income' through the introduction of a one-time voluntary declaration was one of President Zelensky's pre-election promises.
The official aim of the proposed amnesty is to reduce the high level of the shadow economy (29% of official 2019 GDP) and create conditions for the proper payment of taxes by all citizens. At the same time, the timing of the initiative has likely been triggered by the urgent need to reduce the state budget deficit (projected Q1 deficit alone is UAH 66.8 billion or $ 2.4 billion).
Kesarev Senior Counsel Roman Sukhyy assesses the procedure and the drawbacks of the proposed concept. To read the full opinion, please click here.
