Verkhovna Rada of Ukraine may tighten taxation of freight

The Verkhovna Rada of Ukraine may tighten the taxation of freight and expand interpretation of this concept. This is referred in the draft law "On Amendments to the Tax Code of Ukraine concerning the extension of facilities and bases of taxation on profits" (registration number 3593).

The document is proposed to interpret the term "charter" as remuneration which paid not only for contracts of carriage, lease or sublease of the ship or vehicle for the carriage of goods and passengers by ships or aircraft, transportation by rail or road, but also contracts of carriage of passenger baggage, mail, including the transportation of river, lake, "river -sea" ships and air transport.

The bill also is proposed to introduce the concept of "chartering" as a written contract of employment of the ship (sea, river, air) or vehicle (rail, road) for the haul or series of hauls for a specified period of time, including cabotage operations.

In addition, the bill is proposed to charge an income tax rate of 6 % is not only the amount of freight which paid by resident to nonresident on contracts freight, but also revenues from engineering services, fee for stand idle, compensation of losses incurred by the carrier associated with the performance of the contract freight.

And at the end, it is proposed to tax by a specified rate of remuneration for the towing ship or floating object at a certain distance or pull within a certain time, or to perform a maneuver; remuneration for entering a port or output port of ships and other floating objects, maneuver of towing ship, mooring and other operations at the port waters; remuneration for towing ship (pull) of another ship or other floating object from one port to another (inter-PN towing).

Press-center UAC