The EBA has conducted a Tax Index Survey together with EY Ukraine. The results show a worsening of the tax index from 2.95 in the previous period to 2.9 in the current period. The tax index has been surveyed since 2011 and has never crossed the 3 point mark so far. In the newest period the main finding of the survey is the disappointing stability of the tax environment.
This year, the quality of the tax legislation received the worst score at 2.74, while the fiscal pressure situation was scored the highest at 3.13 (out of 5 possible points).
32 % of respondents reported significant displays of fiscal pressure (24 % in the previous period). The methods of fiscal pressure the respondents experienced included unreasonable interpretation of the tax code by regulatory bodies, “proposals” to pay advance taxes, fines incurred due to delayed reporting as a result of technical failures of the tax authorities´ online reporting systems, and burdensome tax inspections. The number of dissatisfied taxpayers increased to 24 % from 17 %, and the number of satisfied taxpayers decreased from 32 % to 24 %.
The majority of respondents (60 %) assessed the processes of preparing tax reporting and tax administration to be satisfactory, while 30 % experienced it as burdensome. The large amount of time spent on tax reporting was quoted as a negative factor, probably due to the recent significant changes in tax legislation which demanded additional attention to reporting from taxpayers. Only 7 % of the respondents felt that the current tax regime promoted the development of their business.
For more information, refer to the EBA article: link
