On February 6, 2020, the Parliament of Ukraine rejected a formal motion to cancel the results of a vote for the Anti-BEPS Bill (“Motion“).
In this context, on January 16, 2020, the Parliament of Ukraine passed the Anti-BEPS Bill, which introduces a number of fundamental novelties into the Ukrainian tax legislation. The new rules, being largely aimed at combating tax base erosion and profit shifting practices, substantially alter the tax landscape for both Ukrainian individuals and legal entities as well as for non-residents carrying on business in Ukraine.
At the same time, on January 17, 2020, a group of parliamentarians submitted the Motion to annul the results of the Anti-BEPS Bill’s vote for the alleged breach of voting procedures. As a matter of the due procedure, until the formal vote on the Motion, the completion of the legislative procedures had been placed on hold.
Finally, with the Motion being rejected by the Parliament on February 6, 2020, the Anti-BEPS Bill is unblocked for its further signing and promulgating into law by the President. Once signed and officially published, the Anti-BEPS Bill shall come into force with some of its provisions, like CFC Rules, earning stripping restriction, “constructive dividends”, becoming applicable on January 1, 2021.