Ukraine plans compensating overpaid enterprise profit tax with state bonds

Ukraine plans compensating overpaid enterprise profit tax with state bonds



7 жовтня 2014 года
Конкорд Капитал

Ukrainian authorities and the IMF agreed on possibly issuing state bonds that will be used to redeem UAH 9.7 bln in overpayments on the enterprise profit tax, the Interfax-Ukrayina news agency reported on Oct. 6 citing the State Fiscal Service release.



Total overpayments on the enterprise profit tax have already reached UAH 26 bln and authorities are looking for ways to compensate the enterprises in the 2015 budget, according to the State Fiscal Service. As its proposal, the IMF stated in a recent memorandum that the Ukrainian government can issue UAH 16.7 bln in state bonds for VAT debt repayment. So far, the authorities have issued only UAH 6.7 bln out of the agreed-upon bonds amount, with the rest to be potentially issued to cover state’s debt for overpaid enterprise profit tax advances.



Alexander Paraschiy: The intention of the authorities to repay finally tax advances that businesses contributed to state coffers in previous years is commendable. The only problem is that such redemptions will only add to the stock of state debt, which had already exceeded 60% of GDP by August. So in this process, the role of the IMF in limiting such issues at a safe level will be very important. All in all, the enterprise profit tax overpayment redemption coupled with further Naftogaz refunding and extra foreign loans should bring the state debt to at least 65% of GDP by the end of 2014.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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