The suggested changes in the tax legislation of Ukraine, namely in law No. 1210 within rent payments will put Ukraine in the top of countries with the highest tax burden on companies. Todd Bradshaw, the international analyst of tax and legal services who worked with the ore extraction companies stated this, according to the Obozrevatel.
"This legislation (No. 1210 - ed.) is, of course, difficult to be realized by the companies, which are working with mining in Ukraine. It provides a significant increase in requirements in rent payments for those companies and of course they are worried about it," he said.
The expert emphasized that companies' expenditures on the extension are higher in our country than in Russia or China.
"What we need to focus on after we have seen the first legislation, which suggests quite high rates, is the dialogue between business and state, which would include us to stop in the middle of conversation relating to rates on rent and taxation with the rent payment of the companies working with ore extension," Bradshaw explained.
The expert also added that ore prices are not stable on the market during the short period of time.
"Now prices are high and everything is okay, but when the prices turn and go down, the Ukrainian business will be affected more than business in other countries due to the suggested rent pay. It is necessary to continue the dialogue. It is not the problem that rates are rising from 8 to 10%, but the difficulty is that the price of the mined ore and its finished products will increase greatly," the analyst believes.