What motivates Ukrainian business to change?
The fifth seminar titled “Global and local trends driving the need for business transformation” was held on 11 December 2018 as part of TaxHUB, a joint project of Deloitte and the American Chamber of Commerce
In 2018, Ukraine initiated active work on harmonizing national legislation with the requirements of international tax standards. All related initiatives encourage business to transform and adapt to current requirements.
Tax and legal specialists from Deloitte Ukraine, namely the representatives of Complex Business Transformation team shared their insights on key challenges faced by Ukrainian entrepreneurs and what steps they should take to prepare themselves to address such challenges.
“Business has been operating under the same rules for quite a long time, but since 2013 the world has been changing rapidly. Therefore, it is important not to resist, but to adapt to these changes today in order to avoid problems tomorrow,” said Nataliya Ulyanova, Leader of Complex Business Transformation practice at the beginning of an interactive seminar.
The main global and local trends driving transformational changes in Ukrainian companies were thoroughly studied during the event.
Current changes in international laws are associated mainly with the approaches to doing business in terms of tax transparency and fairness. Therefore, the event speakers focused on aspects related to the BEPS Action Plan implementation. The main objective of the BEPS Plan is to combat base erosion that is often abused by multinational companies.
Kateryna Grabovyk, Senior Manager of Complex Business Transformation emphasized on the importance of being aware of all the provisions contained in the BEPS Action Plan, as Ukraine plans to implement them in the near future. During the seminar, Kateryna described the main requirements of the BEPS Plan with reference to specific cases.
“Due to the signing of the Multilateral Convention (MLI) by Ukraine in July 2018, which is the BEPS multilateral instrument, it is necessary to prepare for the Principle Purpose Test,” said Kateryna.
Global trends have a direct impact on local developments. As an example of this, Nataliya Ulyanova mentioned the discussion around the deoffshorization draft law, which arose as a result of Ukraine joining the process of implementing the BEPS provisions. According to Kateryna Grabovyk, the BEPS Plan envisages fundamental changes in ways of working with foreign companies. These changes should be expected after the draft law on taxation of controlled foreign companies is adopted. Deloitte Ukraine has already reviewed the initiative and discussed its main provisions during the seminar.
Trends in the sphere of automatic exchange of financial information and Ukraine's intentions in this regard were also discussed at the seminar. Complex Business Transformation team of Deloitte Ukraine presented an in-house algorithm for commercial accounts auditing.
“To be confident in tomorrow, you need to face all future challenges and start preparing for them today”, summed up Nataliya Ulyanova at the end of the seminar.
TaxHUB is a joint project of Deloitte Ukraine and American Chamber of Commerce created to help business in dealing with topical issues, determining areas where best international practices may be applied, giving insights of implications that business may have upon taking various approaches to taxation.
Information and analytical partner: LIGA:ZAKON that has been providing professional support to Ukrainian businesses for 27 years. Interactive Accounting is an online resource facilitating the search of latest accounting information. Online reporting service Liga:REPORT is a fast and reliable tool for submitting reports to the state authorities and registering of VAT invoices/adjustment calculations by all types of companies.