The Ministry of Finance of Ukraine has developed a draft law on amending the Tax Code of Ukraine to improve the taxation of insurance activities in Ukraine. Interfax-Ukraine reports this.
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The document proposes to exclude from the list of transactions that are not subject to VAT, operations for the provision of services related with insurance activities by insurance brokers and insurance agents, and include operations for the provision of other intermediary services related to the sale of insurance and/or reinsurance products by insurance and/or reinsurance brokers.
In terms of corporate income tax, it is proposed to introduce tax on domestic input reinsurance operations for insurers aimed at leveling “non-classical” insurance and tax evasion, as well as adjusting the procedure for taxation of transactions with non-residents under insurance contracts for those traveling abroad, in order to avoid tax arbitrage on payments to non-residents under insurance contracts.< /p>
According to the explanatory note regarding the personal income tax, the bill proposes to establish a procedure for determining the redemption amount under an insurance contract when determining monetary obligations in foreign currency. Also establish that the amount of insurance payment that belongs to the beneficiaries or heirs is taxed according to the rules and rates established for inheritance taxation, while the beneficiary is equated to the heir.
