The corresponding decision was made at a meeting on Wednesday, January 31. At the same time, the Cabinet explained that according to certain norms of the Tax Code of Ukraine, those states and territories in which the corporate income tax rate (corporate tax) by 5% or more% are lower than in Ukraine.

In addition, Ukraine includes states and territories that give economic entities preferential taxation regimes or in fact allow them not to pay the specified tax, or pay it at a lower rate than in Ukraine.

Such measures are necessary to prevent the erosion of the tax base with profit tax, the Finance Ministry explained, adding that the income received by the residents of these countries in Ukraine, according to the legislation of these countries, is not subject to taxation, since, unlike the Ukrainian system, the moment of taxation in these states arises at the moment of profit distribution, rather than its receipt.

At the same time, the government believes that such a system carries risks of minimization by entrepreneurs-residents of our country of payment of corporate income tax. For these reasons, these countries were assigned to the corresponding list. However, after the decision of the government came into force, the three mentioned countries provided Ukraine with information that their tax system provides for taxation by corporate tax at a rate of 15-20% when paying income, which does not meet the criteria for the formation of Ukraine's list of countries with controlled operations.

Recall, as reported URA-Inform, on January 30, the Ministry of Foreign Affairs of Latvia handed to Ukraine an official note because of the country's inclusion in the list of offshore companies.