As part of its commitment to BEPS, the Ukrainian government has signed up to implement four minimum standards to counter harmful tax practices by insisting upon greater transparency and substance, as well as by disclosing aggressive tax planning methods and improving the means of dispute resolution.
Over the past two years, Ukraine has undergone political and economic reforms so that the country can strengthen its ties with the European Union. Ukraine entered into an association agreement with the EU in 2014, which was later rolled into the Deep and Comprehensive Free Trade Areas (DCFTA) in 2016.
The Ukrainian government may be looking to tax reform as one of the ways to further improve its international standing. Closing the loopholes for tax avoidance is also one way to help balance the books and this is a key priority for securing new loans. The IMF has made budget restraint the main condition for its $17.5 billion bailout programme.
Access to these funds is conditional upon keeping inflation low, reducing the deficit and tackling corruption. So far tax reform and spending cuts are helping to keep the deficit below the 3.7% limit stipulated by the IMF. The last budget included a raft of new cuts and the IMF signed off on a loan of $1 billion in April 2017.
At the same time, the Ukrainian authorities are considering the possibility of moving towards the Estonian model of taxing the dividends of corporations rather than taxing the profits. This proposal has support from some quarters, while tax practitioners are sceptical that the Estonian model can be recreated in Ukraine.
"Some say it will be good because it will lessen the corporate tax burden and incentivise greater investment by business. But there are also concerns that the administration will make these changes and there will be a gap left over from the loss in the tax revenue," said Pavlo Khodakovsky, partner at Arzinger.
It is also possible that the real problem is a lack of support. "I don't think it will be adopted. In my view there is not enough political will," said Illya Sverdlov, head of tax at DLA Piper. "The current system generates more tax revenue for the budget in the short term, though it might be an advantage long term to change the system."
Aleksey Pukha and Partners
21 John Paul II / Patrisa Lumumby, Office 416, Kiev, Ukraine, 01042
Tel: +38 (044) 528 30 94
Fax: +38 (044) 528 30 54
Key contact partner: Aleksey Pukha
Tel: +38 (044) 528 30 94
Fax: +38 (044) 528 30 54
Ernst & Young LLC
Khreschatyk Street, 19A
Tel: +380 44 490 3000
Country Tax Leader
Vladimir A. Kotenko
Tel: +380 44 490 3006
Mobile: +380 67 507 7369
Business Tax Advisory, Global Compliance and Reporting, Transaction Tax
Vladimir A. Kotenko
Tel: +380 44 490 3006
Mobile: +380 67 507 7369
International Tax, Transfer Pricing
Igor O. Chufarov
Tel: +380 44 492 8231
Mobile: +380 67 246 3751
Igor P. Dankov
Tel: +380 44 490 3039
People Advisory Services
Olga V. Gorbanovskaya
Tel: +380 44 490 30 22
EY Legal Services LLC
Khreschatyk Street, 19A
Tel: +380 44 490 3000
Tel: +380 44 499 2011
WTS Consulting LLC/ KM Partners
5 Pankivska St., 5th floor
01033 Kyiv, Ukraine
Phone: +38 044 490 71 97
Main areas of focus:
Corporate Tax, Mergers & Acquisitions, International Tax & Permanent Establishments, Indirect Tax, Customs, Private Clients, Transfer Pricing, Tax Controversy
|Corporate Income Tax||18%||A|
|Capital Gains Tax||18%|
|Net Operating Losses (years)|
|Royalties from, for example, patents, know-how||15%|
|Branch Remittance Tax||0%||N/A|
A) Special tax rates exist for insurance companies.
B) The following interest is exempt from withholding tax:
Managing partner Denis Lysenko is the head of tax and customs at AEQUO. He has more than 15 years of experience advising investors in cross-border transactions involving assets in Ukraine. In domestic matters, Lysenko acted for major clients in the privatisation of steel and natural resources. He is the chairman of the supervisory board and an expert of the Ukrainian Sustainable Development Fund (USDF).
The tax team has impressive expertise in domestic and international tax matters, including cross-border transactions, transfer pricing, restructuring, dispute resolution and tax planning across multiple jurisdictions. The firm draws clients from a wide array of key sectors, including finance, agriculture, consumer goods, retail, energy and TMT.
Managing partner Aleksey Pukha is the head of tax services at Aleksey Pukha and Partners. He has more than 10 years of experience in tax law and focuses on key areas such as corporation tax, litigation and arbitration. Pukha's expertise covers transfer pricing, IP rights, due diligence and tax disputes.
Founded in 2009, Aleksey Pukha and Partners specialises in manufacturing, logistics, technology and pharmaceuticals. The firm's clientele includes public-private partnerships, family-owned businesses and financial institutions such as banks and investment funds. The streamlined tax practice provides services to corporate and private clients from all over the world. Other key figures at the practice include Aleksandra Pavlenko, Anna Gadiatska and Inna Zaikina.
The team of specialists at allTax is based in Kiev and offers a wide range of tax consultancy services in such matters as transfer pricing, corporate security, due diligence, arbitration and dispute resolution. Key figures at the firm include partner Artem Sereda, who specialises in TP issues, and managing partner Victor Sereda, who has more than 30 years of experience in tax law. The firm caters to large, medium and small-sized businesses, including financial institutions.
The tax practice at Arzinger offers advice and support in all areas of tax, covering international tax, corporate tax, planning, transactions, disputes and compliance. Pavlo Khodakovsky leads the international tax team and Kateryna Gupalo oversees tax disputes and white collar defence. The two of them have built up a strong practice in their respective fields.
With offices in Kiev, Odessa and Lviv, the firm's key focus areas include IT, finance, energy, life sciences and pharmaceuticals. Arzinger caters to a variety of Ukrainian and international clients, from large holdings with foreign capital to wealthy individuals. Other key partners at the firm include Andriy Selyutin, the head of the Odessa office, and Markian Malskyy, who heads the Lviv team. Selyutin focuses on infrastructure and logistics, whereas Malskyy has expertise in settling disputes for clients in the energy and real estate sectors.
Managing partner Oleksiy Didkovskiy heads tax services at Asters, alongside Alexey Khomyakov and Constantin Solyar. The team's expertise covers M&A deals and transactions, foreign direct investment (FDI), corporate tax, asset management, tax litigation, direct and indirect tax. Transactions are key focus area for the practice.
Asters provides assistance with planning, structuring, risk management, VAT and other indirect tax issues. Overall, the firm employs a staff of 120 people, including 15 partners and 70 other lawyers. The tax team comprises three partners and five other tax specialists. The firm's sector focus spans financial services, real estate, energy, manufacturing and pharmaceuticals, among other areas.
Managing partner Mykola Stetsenko is the head of tax at Avellum Partners. His primary focus is M&A, capital markets, private equity, competition and restructuring. Stetsenko works with Vadim Medvedev, Vladyslav Aleksandrov and Andriy Romanchuk. The team has strong expertise in tax controversy, transactions and tax planning.
The Ukrainian tax group offers clients tax services in international tax planning, de-offshorisation, transactions and restructuring. This remit extends to dispute resolution and risk management. The firm often liaises with the Ukrainian tax authorities and the Ministry of Finance.
When it comes to international tax planning Avellum's team has expertise in covering multiple jurisdictions, including the UK, Luxembourg, Cyprus and the US. The firm's clients include domestic and international companies from such economic sectors as mining and natural resources, chemicals and pharmaceuticals and financial services.
Partner Hennadiy Voytsitskyi is the head of the tax group at Baker McKenzie. With more than 20 years of experience, Voytsitskyi has impressive expertise in areas such as transfer pricing, M&A transactions, reorganisations and wealth management. The team often liaises with the Ukrainian tax authorities.
Baker McKenzie offers services covering all areas of tax, including international tax planning, auditing, M&A, litigation, restructuring and VAT. The firm applies a flexible methodology to accommodate different business models. The practice draws major clients from key areas of the financial services sector, such as capital markets and private equity, as well as the high-tech sector, consumer goods and real estate.
The group of one partner and eight other fee earners comprises tax lawyers, economists and financial analysts. The team brings together economic analysis with tax and legal capabilities to offer an integrated range of services.
Tatyana Stretovich heads the tax law department at Baker Tilly. The department offers tax services in reporting, auditing, compliance, due diligence, M&A transactions, international planning and structuring. This remit extends to transfer pricing, including full documentation and risk management. The firm assists clients in developing strategies for reducing risk and optimising the tax burden.
Before joining Baker Tilly International, the independent firm was founded in 1999 and focused on auditing, accounting and business consultancy. Baker Tilly International encompasses 165 independent firms operating in more than 140 countries.
With four partners and 89 other specialists, Deloitte offers clients advice on all areas of tax, such as corporate tax, planning, compliance, restructuring, transfer pricing and transactions. The tax and legal practice is overseen by Alexander Cherinko, who has more than 13 years of experience in corporate tax, international tax, transfer pricing and VAT.
Since 1993, Deloitte Ukraine has provided tax advice and support to business in such areas as auditing, corporate finance, de-offshorisation and risk management. The firm also assists with developing an investment strategy that takes into account tax and customs issues.
Deloitte also provides tech solutions in TP documentation, data analytics and the benchmarking study process.
Igor Davydenko is the head of the tax department at Dentons in Kiev. He works side by side with fellow partners Markian Silecky, Myron Rabij and Ihor Mehedynyuk. The tax team has strong expertise in international tax law, whether it is cross-border arrangements, M&A transactions or transfer pricing.
The tax practice covers the complete range of tax services, such as openings and liquidations, planning, disputes, structuring, litigation, VAT, customs and excise duties. The firm's key focus areas include IP rights, non-profit organisations, real estate, natural resources and securities. The firm draws Ukrainian and international clients from major sectors, such as energy, finance, agribusiness and manufacturing.
Legal director Illya Sverdlov and counsel Svitlana Musienko head the tax practice at DLA Piper. Sverdlov has extensive experience advising domestic and international clients on tax issues, especially tax-driven restructuring. Musienko advises clients on international tax planning, corporate law and structuring.
The tax team covers the full range of tax services, including such areas as international tax, de-offshorisation, transactions, structuring, transfer pricing, direct and indirect tax. The practice comprises lawyers with backgrounds in accounting and finance with a strong capacity to advise domestic and multinationals companies on M&A deals, restructuring and BMO.
DLA Piper has a portfolio of high profile clients, including multinational corporations from key sectors like software, electronics, life sciences, chemicals, manufacturing and telecommunications.
Counsels Oleksandr Maydanyk and Arsen Miliutin co-head the Ukrainian tax practice at Egorov Puginsky Afanasiev & Partners, Taxand Ukraine. A key partner at the firm is Ilona Zekely, who, with more than 25 years of experience, advises blue chip clients on tax structuring. The team offers a wide array of tax services, including corporate and international tax, planning, transactions and tax litigation.
Founded in 1993, the firm provides legal services across the Commonwealth of Independent States (CIS) with offices in Russia, Ukraine and Belarus, and associate offices in the US and the UK. Clients include domestic and multinational companies, government authorities, financial institutions and public-private partnerships. As part of the global Taxand network, Egorov Puginsky Afanasiev & Partners works alongside more than 400 partners and 2,000 tax advisers operating in more than 40 countries worldwide.
Partner Vladimir Kotenko is the tax leader at EY in Ukraine. Kotenko was at Arthur Andersen before joining the firm in 2002. He works with Olga Gorbanovskaya, the human capital leader, Albert Sych, the leading legal specialist, and Igor Dankov, who leads the customs group. The Ukrainian tax group has a wealth of expertise in all industrial sectors, with a strong skillset in financial affairs. The firm offers tax advice in such areas as financial restructuring, business model optimisation (BMO), tax planning and risk management.
Nataliya Tomashevskaya is the head of the tax practice at Integrites. She has a wealth of expertise in tax planning and risk management. Tomashevskaya has led the tax team for more than 12 years. The practice offers support in matters such as corporate tax, M&A deals, cross-border transactions and tax controversy. Key partners at the firm include Vatslav Makarskiy in Russia and Svetlana Shtopol from Kazakhstan.
Integrites serves a wide range of clients in disputes with the tax authorities in the CIS. Outside of the CIS, the firm has advised major international clients, including Air France, Philip Morris International and Ukrainian construction company Zeppelin.
Managing partner Yaroslav Romanchuk is the head of tax at International Legal Center EUCON. He has expertise in corporate, tax and customs law, as well as transfer pricing, IP rights, corporate restructuring and asset protection.
The team of 12 offers an extensive range of tax services, including cross-border transactions, tax planning, business model optimisation (BMO) and compliance. The range of clients spans the oil and gas sector, agriculture, electronics, telecommunications and financial sectors. With offices in Kiev and Warsaw, EUCON is able to focus on the Ukrainian and Polish markets.
As part of TPA Global, EUCON belongs to an international network of independent specialist providers in 60 countries. This complements the firm's capacities in areas such as transfer pricing, tax valuations and customs.
Founded in 2003, the tax practice at Jurimex is overseen by Vita Forsiuk and Danylo Getmantsev. The firm has approximately 100 lawyers with in-depth knowledge of domestic and international law. Jurimex offers a wide variety of tax services for a diverse client base, including companies in real estate, construction, logistics, infrastructure, gambling and entertainment. The digital economy and technology sectors are a key focus area for the firm. Key practice areas include transactions, tax disputes and litigation.
Yevgeniya Derbal is the head of the tax department at Konnov & Sozanovsky. She advises clients from a range of sectors such as banking, capital markets and real estate, as well as software, telecommunications and agriculture. The department offers a full and integrated range of services in personal tax matters, M&A deals, cross-border transactions, international tax planning and disputes. The firm's past clients include Mitsubishi Corporation and Unilever.
The tax and legal department at KPMG is headed by Sergey Popov. He has more than 20 years of tax experience advising multinational and domestic companies. Popov's core expertise is international tax planning and structuring investments, particularly developing tax efficient strategies and repatriating foreign earnings.
With around 100 tax professionals, KPMG Ukraine offers a vast range of services, including M&A transactions, compliance, transfer pricing, VAT, dispute resolution and litigation. Recent additions to the department include senior tax consultant Olena Kaliuzhna and lawyers Leonid Gorshenin and Olena Papazova. The team has key strengths in litigation, banking and financial services.
As KPMG has invested heavily in tax technology, the Ukrainian practice offers clients automated solutions to maximise efficiency and streamline particular services. The firm draws major clients from sectors such as finance, oil and gas, agriculture, healthcare, automotive, food and beverages.
As part of its extensive tax services, Law Offices of OMP provide clients with advice and support in key areas, such as direct and indirect tax, transactions, auditing, disputes and litigation. Partner Dmitry Mikhailenko is the head of the firm's tax practice. He works closely with fellow partners Leonid Karpov, Olga Bogdanova, Roustam Vakhitov and German Taslitskiy.
With three partners and 15 other tax specialists, OMP serves a diverse client base ranging from property developers to banks and investment funds. The firm's sector focus spans major areas of the Ukrainian economy such as pharmaceuticals, health-care, agriculture, IT and real estate. Intellectual property law is a key focus area as part of the team's work in the IT sector. As part of an international strategy, the Ukrainian firm has established close ties with law firms in the US, the UK, Belgium, Russia, Cyprus and the Baltic region.
Founding partner Oleh Marchenko oversees tax and customs services at Marchenko Danevych, the firm he established with Borys Danevych in partnership with Danish law firm Delacour. The team advises clients on a wide range of tax and customs matters, including tax planning, risk assessments, disputes, litigation and arbitration. This remit extends to transfer pricing, M&A deals and corporate tax. The firm's key practice areas include agriculture, IT, energy and life sciences.
Volodymyr Misechko is the head of tax at Misechko & Partners. He launched the firm in 2009, representing the interests of businesses in Ukraine and Poland. The tax group offers advice and support in all areas of tax, with a strong focus on tax litigation. The service range includes cross-border transactions, structuring and dispute resolution. The firm's client base includes mid-sized companies drawn from sectors such as agriculture, engineering, logistics, retail and the food and beverage industry.
Camiel van der Meij is the head of tax and legal services at PwC for Poland, Ukraine and Central Europe. He has more than 25 years of tax experience and specialises in corporate and international tax law, especially for consumer industrial products and financial services. The tax group at PwC Ukraine engages with tax planning, compliance and transfer pricing.
Another key figure at the firm is Viacheslav Vlasov, who advises Ukrainian and international businesses. Vlasov is the co-chair of the tax committee of the American Chamber of Commerce in Ukraine. He has worked in Russia and holds accounting qualifications in the US and Ukraine.
Serhiy Verlanov is the head of tax at Sayenko Kharenko. He has more than 15 years of experience in tax litigation. Verlanov regularly advises clients on such matters as cross-border structuring, transactions, due diligence and VAT. Other key team members include Oleksandr Markov, Konstantin Penskoy, Kateryna Babych and Alexander Buryak.
The team comprises highly specialised litigators and criminal defence attorneys with extensive experience in tax disputes and controversies. The practice bridges the gap between the Ukrainian tax authorities and the business community and often helps clients obtain advance tax rulings. The firm caters to a wide range of clients from major sectors such as oil and gas, finance, pharmaceuticals, mining and agriculture.
Managing partner Andriy Stelmashchuk oversees the tax team at Vasil Kisil & Partners. He has expertise in tax disputes and white collar crime. The team assists clients with a range of tax affairs, such as risk management, restructuring and transactions, with a key strength in litigation.
Vasil Kisil & Partners serves clients from a wide range of industry sectors, including agriculture, chemicals, financial services and oil and gas. Key practice areas include M&A deals, capital markets and disputes with the Ukrainian authorities.
Senior partner Alexander Minin is the head of tax at WTS Tax Legal Consulting (operating as KM Partners). He works in tandem with Alexander Shemiatkin, whose specialities include criminal tax law, litigation and intellectual property (IP) rights. Another distinguished partner is Ivan Shynkarenko, who oversees transfer pricing. Minin and Shemiatkin are elected members of the public council to the Ukrainian Parliament's committee on tax and customs.
The team comprises three partners and 20 other tax specialists, combining in-depth knowledge of tax law and litigation skills. The firm offers clients advice and support in such areas as tax planning, compliance, international structuring, cross-border arrangements and profit repatriation. The firm's clientele span key sectors such as agribusiness, chemicals and biotechnology, logistics, retail and food and beverages.
The Ukrainian firm has been a part of the WTS Global Network since 1999. The international network comprises consultancy and law firms active in more than 100 countries.
|Tier 1- Ukraine|
|WTS Tax Legal Consulting|
|Tier 2- Ukraine|
|Egorov Puginsky Afanasiev & Partners, Taxand Ukraine|
|Law Offices of OMP|
|Tier 3- Ukraine|
|Aleksey Pukha and Partners|
|International Legal Center EUCON|
|Konnov & Sozanovsky|
|Misechko & Partners|
|Vasil Kisil & Partners|