1.    General  Information
I.   Facts and Figures

Official Name of Country: Ukraine
Area: 603 700 km2  (the second place in ______ after Russia)
Capital: Kyiv
Major Cities (Population) : Kyiv (2,6 million), _______ (1,5 million), Dnipropetrovsk (1,1  million), Odessa (1 million), _______ (1 million)
Official Language: Ukrainian
Currency: Hryvnia (UAH) official ________ rate of Hryvnia against _______ currencies [1]
Time Zone: GMT +3
Telephone Code: +380
Country Code Top-­‐Level Domain: .ua
Traffic Flow: Right
Electricity Voltage: 220 V, 50 __

---

II.   Population

Population: 45 675 thousand (01.07.2011)
Labor Force (Population): 22 058,2 thousand (01.07.2011)
Median age: 39,9 (2010)
Ethnic groups: Ukrainians (77,8%), Russians (17,3%), Belarusians, Moldovans, Crimean Tatars, __________, Hungarians, Romanians, Poles, Jews, _________, Greeks, Tatars, Azerbaijanis, Romanians, _________, Germans, Gagauz and others

---

III.    Legal Framework

Ukraine is a civil ___ country. The powers of __________ are divided into three ________ -­‐ legislative, executive and ________. Laws adopted by the __________ are forwarded to the ____________ him to sign. The ______________ Court of Ukraine is ___ sole organ of constitutional ____________ of Ukraine.

The court system in _______ has three branches:

• The general court system decides on civil disputes ___ criminal cases, including cases _____ by individuals that are ___ private entrepreneurs. The structure ________ of local district courts, ________ courts of appeal and ___ Civil and Criminal Chambers __ the Supreme Court of _______.
• The commercial court system generally resolves business disputes _______ legal entities. It consists __ local commercial courts (one __ each region, plus Kyiv ___ Sevastopol), interregional courts of ______, and the High Commercial
• The administrative court system decides on disputes involving _____ authorities. It consists of ________ administrative courts (one in ____ region, plus Kyiv and __________), interregional courts of appeal, ___ the High Administrative Court. ___ Supreme Court of Ukraine __ the highest court, and ___ the power to review _________ of all three branches __ the court system. As __ alternative to litigation, Ukraine ______ for third party arbitration. _________ law also allows foreign companies to include an arbitration ______ in their contracts, including _____ with Ukrainian entities, which _____ for arbitration by international ___________

The following major pieces __ legislation (in addition to ________ law) affect foreign investment ____ Ukraine:

The Foreign Investment Law sets out in broad _____ Ukraine's policy on inward __________ and the rights and ___________ of foreign investors.

The Civil Code regulates civil relationships, the _____________ of legal entities and ________ property rights.

The Commercial Code was enacted on the ____ day as the Civil ____, and governs business relationships. ___ Commercial Code is intended __ regulate issues that are ___ dealt with in the _____ Code, even though in ________ there is some overlap.

It governs the public ________ and trading of securities _________ Securities and Stock Market.

The Competition Law restricts business monopolies. The ________ of mergers and acquisitions __ Ukraine are likely to _______ pre-­‐approval from the Antimonopoly __________.

The Law on Protection from Unfair Competition aims __ protect business entities and _________ from unfair competition.

The Environmental Protection Law establishes a framework for _________ charges to be imposed __ any legal entity that __________ contaminants into the environment.

IV.   Regions of Ukraine

Regions of Ukraine differ __ a number of indicators: __________ location, market size, population, ___. However, each region may ______ be interesting for foreign _________ for their specific sectorial __ regional investment projects.

Different parts of Ukraine ____ different natural, economic and _____ conditions. If a region __ specialized in a certain ______ of economy, it receives ____ it lacks from another ______. This specialization is often __________, but can change throughout ___ years.Ukraine is divided into ________ regions – sectors with ________ economic characteristics. Territorial divisions ___ traditional specialization form the ____ of Ukraine’s current division ____ nine economic regions.

To define regional specialization, ________ of different industries in ____ area are analyzed. Usually _____ industries appear thanks to ________ natural resources and conditions, _____ labor force, specific geographic _________, available transport and logistics, __________ and specific state tasks.

Mapping Ukraine’s economic regions

According to its natural, _____-­‐________, historical and other plate-­‐marks (_________ administrative-­‐ territorial division), Ukraine __ currently divided into nine ________ districts: Donetsk, Pridneprovsky, Northeastern, _______, Central, Podilsky, Northwestern, Carpathian ___ Black Sea Coast.

Donetsk region (Donetsk and _______ oblast) has substantial human _________. It is the leader __ the country by means __ number and density of __________. The region is among ___ most prosperous.           Its leading __________ are energy,  coal,  metallurgy,  ________,  building  materials  and  heavy  ___________. The region also has ____________ and varied natural resources: _______ soil,  coal,  salt,  building _________, vermillion, etc. Its  agriculture  __  characterized  by  the  dominance  __  cattle  breeding, while city _______ feature a considerable amount __ urban farms. The region ____ boasts of a well-­‐developed _________ network, particularly railroad that ___ the highest density in ___ country. The  main  industrial  ____  are  Donetsko-­‐Makeevsky,  Gorlovsko-­‐Enakievsky,  Lugansky,  ___________-­‐ Konstantinovsky, Stakhanovo-­‐Alchevsky, Lisichansko-­‐Rubezhansky and ___________.

• Pridneprovsky region (Dnepropetrovsk and Zaporizhzhya oblast) ___ the country’s sixth highest __________, but is among the _______ as far as  its  _______  resources  are    Some  __  them have global importance. ___ region is specialized in _____ metallurgy, machine  building,  metal  __________, chemical industry and energy, ___ according to its industrial ___________ it has the second _____ following Donetsky region. A ____-­‐_________ irrigation system helps agriculture, _____ crop raising and plant ___________ dominate animal husbandry. The ______ has a vast transport _______ with major hubs in ______________ and Dneprodzerzhinsk, Nikolsko-­‐Marganetz, Pavlograd-­‐ _____________ and Zaporizhzhya. The region _______ iron and manganese ores, ________, titanium, mining and metallurgical _________, automobiles, tires, oils and ________, agricultural products and equipment. __ imports coal and charcoal, _________ machinery, textiles, etc.

• Northeastern region (Kharkiv, Poltava and Sumy ______) is among the country’s ___ three agricultural and top ____ industrial leaders. Its natural _________ consist of oil, gas ___ iron ore. The region’s ____ industries are engineering, metal __________ and chemical, food and _____ industries. The biggest hubs ___ Kharkiv, Kremenchug, Poltava and ____. The region imports metal, ____, different machinery and equipment, ________ products and food. It _______ natural gas, iron ore, ___ products, concrete-­‐steel constructions, tractors, _______, engineering tools, bicycles, etc.

• Capital region (Kyiv, Zhitomir and Chernigiv ______) is second in territorial ________ and population within the _______. It is rich in _______ and quarries ample building _________. It is the country’s ______ biggest industrial (engineering, chemical ___ light industries) and agricultural ______. The main means of _________ are railroad (60% of _______ loads) and air (Kiev __ the biggest airway hub __ Ukraine). The region’s important _________ centers are Kiev, Chernigov, ________ and Bilotserkovsky. In the _______, where a wide range __ goods and services are ________, import still overwhelms export.

• Central region (Cherkassy and Kirovograd oblast) __ at the bottom of ___ list in the country’s __________ density (2.4 million people) ___ industrial potential. It depends _______ on agriculture. Natural resources _______ of building and decorative ______. Leading industries comprise of ____ processing, engineering and metallurgy. ___ biggest centers are Cherkassy, __________, Alexandriysk and Uman. The ______ exports agricultural machinery, equipment ___ light and food industries, __ sets, chemical fiber, nitrate ___________, sugar, vegetable and meat _____________, and import virtually everything (____ coal and petrol to _______ and agricultural produce).

• Black Sea Coast (Odessa, Mykolaiv, Kherson and ___ Autonomous Republic of Crimea) ___ the country’s largest population __ 7.1 million people. It ___ poor natural and water _________. The economy’s leading industries ___ engineering and metal processing, ____ and light industries, and _____ growing in agriculture. There ___ many gardens and vineries. ____________ is highly developed. The ______’_ import rate is bigger ____ the export’s. The main _______ are Odessa, Mykolaiv, Kherson, _________-­‐___________, Simpheropol, Sevastopol, Kerch and ______-­‐_____________.

• Podil region (Vinnitsa, Khmelnitsk and Ternopil ______) is least Natural resources _______ of raw building  materials.  ___  main  centers  are  Vinnitsa,  __________,  Ternopil,  Kamenets-­‐Podilsk,  and Shepetovka. ___ region’s economy depends on ___________, specializing in grain growing. __ is the country’s fourth _______ agricultural area. Main industries ___ food, engineering and machine ________ (specializing in equipment for ____, chemical and light industries).

• Northwestern region (Volyn and Rivne oblast) ___ the country’s smallest territory ___ population (2.2 million). With 38% of forests, Volyn takes ___ second place after Carpathian ______. Its other natural resources ___ coal, charcoal and building _________. The region has the _______’_ lowest industrial potential. In ________ to food and light __________, it mainly specializes in _________, metal processing and woodworking, _____ are rapidly developing. The ______ has three main centers __ Rivne, Lutsk and Kovel. ___ region exports building materials, ____________ machinery, automobiles, chemical fertilizers, ________, cotton cloth and the ______ kind of amber. It _______ metals, different machines and _________, instruments, automobiles, buses, natural ___ synthetic fibers, and agricultural

• Ca r pa t h ian region   (Lviv,  Zakarpattya,  Ivano-­‐Frankivsk  and  __________)  has  high  population  density (______ than the country’s average). __ has various natural resources ___ is rich in water ___ forests.      This is an __________ region specializing  in  engineering,  _____  processing,  chemical  products,  woodwork, _____ and food industries and ____________. The region has a _________ road and railway network  ___  high  historical  tourism  potential.  ___  main  centers  are  Lviv,  ____________-­‐_______, Chervonograd-­‐Sokalsky,      Chernovtsy,      Ivano-­‐Frankovsk,      Kalushsko-­‐Dolinsky      ___      Uzhgorod-­‐

V.   Economy

Financial Center: Kyiv
GDP:  USD 162,8 billion (2011, __ current prices)
GDP Per Capita:  USD 7 200 (2011, _____ purchasing power parity basis)
Inflation Rate:  4,6 % (2011)
Foreign Direct Investment:  USD 49 362,3 million (31.12.2011)
Interstate Agreements on the _________ and Mutual Protection of __________:  61 countries of the _____: Albania, Argentina, Armenia, Austria, __________, Belarus, Bosnia and Herzegovina, ______, Bulgaria, Canada, Chile, Congo, _______, Cuba, Czech Republic, Equatorial ______, Estonia, Finland, France, Gambia, _______, Germany, Greece, Hungary, India, _________, Iran, Israel, Italy, Jordan, __________, Korea, Kuwait, Latvia, Lebanon, _____, Lithuania, Macedonia, Moldova, Morocco, ___________, Oman, Panama, Portugal, Russia, ___ Marino, Saudi Arabia, Singapore, ________, Slovenia, Spain, Sweden, Switzerland, _____, Tajikistan, Turkey, Turkmenistan, UAE, ___, Vietnam, Yemen (01.10.2011)
Number of the Foreign _________:  2 229 (01.09.2011)
EU Cooperation Status:  Partnership and cooperation agreement ____ European Union (01.03.1998)

VI.   Foreign Direct Investments __ Ukraine

FDI volume, USD million:  49 362,3 (as of 31.12.2011)
FDI per capita, USD:  1084,3
2011 FDI growth comparing __ 2010, %   : 10,2
Ten major FDI source _________ for Ukraine: 

• Cyprus
• Germany
• Netherlands
• Russian Federation
• Austria
• United Kingdom
• France
• Sweden
• British Virgin Islands
• USA

EU countries share in ___, %:  79,9
FDI structure by sector                                                                  ·     

• Finance – 33,1%
• Manufacturing-­‐ 30,9%, including:
  • Metal products – 12,3%
  • Foods and beverages – 4,2%
  • Chemicals – 2,8%
  • Machine building – 2,5%
  • Electricity, gas, water – 1,4%
• Real Estate – 11,6%
• Retail– 10,5%
• Construction – 6,1%
• Transport and telecoms – 3,8%
• Agriculture – 1,6%
• Hotels and restaurants – 0,9%
• Healthcare – 0,3%
•       Other – 1,4%                                                                        

2.    Forms  of  Foreign __________

Generally, the regulatory framework for the establishment and _________ of businesses in Ukraine by foreign _________ is similar to that for domestic _________, apart from the ownership __ agricultural land, publishing activities ___ the manufacture of carrier _______. As a general rule, __________ permits are not required , but all enterprises ____ be established according to ___ form and procedure prescribed by law and registered with the ___________ government agencies. Foreign

investors are generally not ________ to seek special approval ____ authorities for doing business ___ investing in Ukraine 12 _______ direct investments, but shall ________ them with the state ___________.

Foreign investors can invest __ the following forms:

• Acquisition of assets
  • Direct purchase (acquisition of _________ title)

• Investment in Equity

-          Foundation of a ___ legal entity

• Acquisition of shares or _____________ interest in a Ukrainian _______
• Joint business activity by ________ of a legal entity
• Foundation of branches of _______ investors
• Other forms of investment
  • Business (entrepreneurial) activities pursuant __ production sharing agreements
  • Joint business activity without ________ of a legal entity
  • Joint business activity without _______ funds
  • Public-­‐private partnerships

3.    Company forms

Companies in Ukraine may __ established in the following _____:

• joint stock company (JSC) _______ and public JSC
• limited liability company (LLC)
• company with additional liability
• company with combined liability
• company with full liability

The most common are ____ and the LLCs.

I.   Joint stock company (___)

= similar to German AG or US corporation

A joint stock company (___) is a legal entity _____ share capital is divided ____ a number of shares __ equal nominal value. The _________ of shareholders in a ___ is limited to the _____ of their capital contribution.

A JSC may be ___________ as "open" or "closed". ______ of Open JSC may __ distributed through  public subscription ___ can be floated at _____ exchange, contrary to those __ Closed JSC, which are ___________ between its founding shareholders.

The issued shares of ___ (open and closed) must __ registered with the State __________ and Stock Market Commission __ Ukraine, which prolongs the ____________ process approximately for two ______.

1.       General Information

• § Charter capital
  1,250 Ukrainian monthly minimum ________ (approximately USD 136,000)

• § Number of shareholder
  Private JSC : No ____ than 100 Public JSC : Unlimited

• § Governing Bodies

Supervisory board			General shareholders meeting
Management board			Auditor or audit commission

• § Restrictions
• a wholly-­‐owned JSC may ___ be established by another ______-­‐_____ subsidiary (either foreign or _________)
• a JSC can not ____ have legal entity-­‐shareholders, which ___ wholly-­‐owned by the same ______.

• § State fee  for Registration

USD 21.25 plus 1% __ the share capital, but ___ more than 50 officially ___________ minimum monthly salary as __ the date of the _________ of the JSC.

• § Supervision

Regular reporting to the _____ Securities and Stock Market __________, to the tax and _____ local authorities, filing of ______ accounts.

• § Transfer of shares

There are generally no ____________ on the transfer of ______ in a public JSC. _____ are specific regulations regarding ___________ shareholdings and mandatory buy-­‐outs __ a private JSC, the ________ shareholders may have a ___-­‐_______ right to purchase shares.

• § Reporting requirements

Private and public JSCs ___ subject to reporting and __________ requirements.

“Regular Information” consists of ___ annual and quarterly reporting __ information on the results __ the JSC’s financial and ________ activities, for private JSC. ___ public JSC, on the _____ hand a single annual ______ is sufficient.

“Special information” is information _____ any actions, which may _________ the financial or business __________ of the issuer and ____ to a significant change __ the value of its __________.

2.       Steps needed to ___ up a JSC

→ Timeframe up to 3 months

• Holding a meeting of ________
• Opening of bank accounts ___ security accounts
• Payment of share capital
• Registration of share issuance ____ state regulator
• Issuance of shares by __________
• Holding a second meeting __ shareholders and approval of _ charter issuance of shares
• Registration with the State _________
• Registration with the State __________ Committee
• Obtaining of a seal
• Registration of a Pension ____ in Ukraine
• Registration with the Tax __________
• Obtaining of a VAT ___________ (if possible)
• Registration of a shares _________ report with a state _________

II.   Limited Liability Company (___)

A limited liability company (___) is a legal entity __ which participants own a __________ defined by the Charter, __ the company's capital.

The Charter capital of _ LLC should be equivalent __ a 100 monthly minimum _____ based on the date ___ LLC was established on.

For a 100% investment, _____ a LLC form tends __ be more convenient. In __________ to a JSC, it __ easier and quicker to _________, since no registration with ___ State Securities and Stock ______ Commission of Ukraine is ______. Moreover, for the setting __ of a LLC, lower _______ capitalization is required and ___ members may withdraw their _____________ at any time by ______ three month's notice.

1.       General Information

• § Charter capital
  No  minimal required

• § Number of shareholder
  No more than 100

• § Governing Bodies

	General participants meetings		Directorate (collective
	Audit or auditor commission

• Restrictions
  A wholly-­‐owned LLC (same __ a JSC) may not __ established by another wholly-­‐owned __________ (either foreign  or Ukrainian)§ Restrictions

• An individual or a _____ entity (either foreign or _________) may not be the ____ founder of and/or the ____ participant in more than ___ LLC in Ukraine

• Reporting requirements

Once per year submission __ reporting to the state ____________ authority

• State fee for Registration USD 21.25

2.       Steps needed to ___ up a LLC

→ Timeframe up to 10 – 15 business days

Holding a meeting of ________ and approval of a _______ LLC Registration with the _____ Registrar

• Registration with the State __________ Committee
• Registration of a Pension ____ in Ukraine
• Registration with the Tax __________
• Obtaining of a seal __ LLC
• Opening of bank accounts
• Obtaining of a VAT ___________ (if possible)
• Registration of the foreign __________ (if required)
• Registration with EPY Customs ______ (if required)

III.    Representative Office

Representative office is not _ legal entity and acts __ behalf of the foreign _______ it represents. There are __________ (for restricted entrepreneur activity) ___ non-­‐commercial representative offices (for ___________ or auxiliary activity in ___ region).

A foreign legal entity, _____ carries out foreign economic __________ in Ukraine, has the _____ to open its representative ______ in Ukraine. Registration of _____ offices is to be _______ out by the Ministry __ Economy of Ukraine within 60 days of the date ___ documents are submitted for ____________.

3.    Restrictions  on  investment __________
I.   General restrictions on __________ activity applicable to any ___________

o  Certain types of ________ activity may be pursued ____ by state-­‐owned enterprises:

• rocket industry
• printing of banknotes
• printing of blank forms __ securities

• Certain types of business ________ may be pursued only __ state-­‐owned enterprises or require _____ consent of state  bodies:
  • railway transport industry (including ___ foundation, privatization or reorganization __ railway enterprises, the layout __ railway bed )
  • commercial

• Foreign enterprises may not _______ their activity in certain __________ with strategic importance for _____ security:
  • mining – there exists a _____ requirement that company which ________ mineral resources of state __________ may not be fully _____ by non-­‐residents;
  • electric power transmission and ____________ – there exists a _____ requirement that company which _________ electric power or provides ___________ distribution services may not __ fully owned by

II.   Special restrictions on __________ activity applicable only to _______ investments

Certain thresholds on the _______ permissible percentage of foreign __________ in the charter fund __ a Ukrainian enterprise in ___ following industries:

• pub lishing – the size __ shareholding in a printing _____ for non-­‐residents must not ______ 30 %
• water distribution – companies providing water ____________ services may not be _____ owned by non-­‐residents
• media – broadcasting organizations may __ founded exclusively by Ukrainian

• Land related restrictions:
  • agricultural land – may not be ________ to nonresidents
  • forestry land – may not be ___________ to nonresidents for permanent

• Restriction on financing forms:

Housing projects provides special __________ or forms of financing ____ as construction financing funds, __________ investment schemes, etc.

4.    Taxation

Taxation in Ukraine is _________ according to the new ___ Code of Ukraine dated ________ 2, 2010 N  2755-­‐VI  (___  “Tax  Code”).  The  Tax  ____  stipulates  the  general  principles  __  the  Ukrainian  tax system, __ well as the taxes ___ duties (mandatory payments), tax _____, tax exemptions, procedures    and __________ for tax assessment and ________,     etc.

I.   Investor considerations

• The standard corporate tax ____ is 25%.
• Qualifying small companies may ___ to use a simplified ___ system (with very favorable ___ rules).
• There is no group
• Depreciation is based on ___ reducing balance method; relatively ________ rates are available.
• Losses may be carried _______
• When companies pay dividends, ____ are generally required to ___ advance corporate tax (ACT) __ a 25% CPT This __ in addition to potential ___________ taxes of up to 15%.
• Taxable income expenses are _____ on the "first event ____".

Set forth below is _ brief overview of the ____ provisions related to taxation __ Ukraine:

1.       Corporate Income Tax (___)

Corporate Income Tax (CIT) __ levied on the worldwide ______ of resident legal entities, _________ joint-­‐stock companies, limited liability _________ and state enterprises. Non-­‐resident ________, no matter what the _____ form, including those operating _______ a permanent establishment in _______, are subject to CIT __ their Ukrainian-­‐source income. Small ___ medium businesses may opt ___ of CIT in favor __ United Tax under the __________ tax regime

	resident legal entities		Non-­‐resident entities		Small and medium  businesses
	Worldwide income		Ukrainian source income		May opt out of ___

	joint-­‐stock companies, limited liability _________ and  state enterprises		Independent of the legal ____

2.       Tax rates

The standard CIT rate is established at _ flat 23% ( 21% as of 1 January 2012, which is further to __ reduced to 19% as __ 1 January 2013, and 16% as of 1 January 2014) rate applicable to taxable ______ after permissible deductions.

In general, Advance CIT __ payable by the distributing _______ on dividend distributions to ____________, in which Advance CIT __ then credited against the _________ income tax liability of ___ distributing company.

Furthermore, dividends distributed to foreign corporate ____________ are subject to 15% Ukrainian withholding tax, which ___ be reduced or entirely __________ by virtue of operation __ an applicable Double Tax ______ and Ukrainian domestic procedures. A Ukrainian corporate shareholder, __ a CIT p ay e r ,  is  exempt  from  ________  with  respect  to  dividends  ________  from  resident  or  non-­‐resident “__________ companies” . A company is _______ to have “control” over _______ company if it holds ________ or indirectly at least 20% of the authorized capital __ 20% of voting rights __ the controlled company.

The dividend distribution is ______ from taxation if dividends ___ paid out in the ____ of shares provided that ____ dividends distribution does not ______ proportions of participants in ___ charter capital of the _______ legal entity.

3.       Deductions

In general, all substantiated ________ connected to the business __ a legal entity and ____ (accrued) by the company ______ a tax period are __________ from the taxable income __ they were incurred for ___ preparation, organization, management or ____ of products or services, __ for labor safety.

Certain expenses (e.g. travel ________) are deductible within established ______. Remuneration of employees is __________ if accrued or paid. _________' fees and remuneration paid __ the members of supervisory ______ or supervisory commissions (if _____ members are considered employees) ___

deductible. Dividends paid to _ company's shareholders are not _______ as cost and are ___ deductible for CIT purposes.

Interest paid is generally __________. The deduction of interest ________ is limited where the ________ is paid by a _______ on a loan granted __ its non-­‐resident corporate or __________ shareholders, or entities related __ such shareholders, who in _____ own or manage directly __ indirectly at least 50% __ the borrower's capital. In ____ a situation, the deduction __ limited to the amount __ the borrower's interest income ____ 50% of its net _______ income, the less interest ______.

4.    Taxation of _______ Entities

General rules for taxation __ foreign investment:

• No special taxes for ___ foreign investments or enterprises ____ foreign investments (i.e., national ______).

• Any incomes of a _______ investor in Ukraine are _______ in accordance with the _______ rules established by the ___ Code of

• Any payment that constitutes _ profit by a Ukrainian ________ or the permanent representative ______  of  non-­‐resident  to  the  ___-­‐________  ,  with  the  source  __  Ukraine  is subject to 15% withholding tax (deductible by ___ respective payers, subject to _______ exceptions).

• Withholding tax may be _______ or eliminated as a ______ of existing double taxation ________ between Ukraine and the _______ of residence of the _______

• Foreign legal entities will __ taxed in Ukraine on _____ profits derived from their __________ activities undertaken on the _________ of Ukraine through a permanent establishment ; and

• Income derived from sources ______ the territory of Ukraine __ foreign entities which are ___ engaged in commercial activities __ the territory of Ukraine _______ a permanent establishment will __ taxed at the time __ the remittance of such ______ to such foreign entities __ their authorized representatives, and ____ taxes will be withheld ____ the sums remitted.

The Tax Code provides ____ a foreign entity is ______ for the payment of _________ income tax with respect  __  all  “Ukrainian-­‐sourced”  income.  Article  160.1  of  the  Tax  Code  ________  for  a  non-­‐ exhaustive ____ of the types of ______, which are, per se, ______ to constitute a Ukrainian _______ income, including, inter alia: ________ payments,  dividends,  royalties,  lease  ________,  proceeds  from real estate _____ on the territory of _______, profits from securities transactions, _______ from joint activity  agreements  __  long-­‐term  agreements,  broker  or  ______  fees,  and  other  kinds  __  income derived by a _______ entity from its business ________ on the territory of _______.

However, the Tax Code provides that the income __ a foreign entity received __ the form of a _______ of other kind  of ____________  for the  value  of _____  (works  or services) supplied   ____

abroad by a foreign ______ (or its permanent establishment) __ a resident shall not __________ Ukrainian-­‐source income.

The Tax Code provides ___ a withholding tax rate __ 15% to be withheld __ a resident entity or __ the permanent  establishment  of  _  foreign  entity  from  the  ______  of  any  Ukrainian-­‐sourced  income,  __ and  when  such  foreign  ______’_  Ukrainian-­‐sourced  income  is  remitted  __  such  foreign  entity  or  ___ authorized representative by a ________ taxpayer or by the _________ establishment of such foreign ______ unless an applicable bilateral ______ taxation treaty provides relief ____ respect to such withholding.

5.       Value Added Tax (___)

Value Added Tax (VAT) __ the internal indirect tax, _____ is generally levied on _____ and services at all ______ of supply. Input VAT __ generally deductible against output ___. The positive difference is ____ to the Treasury, whereas ___ negative difference should generally __ refunded by the Treasury.

The VAT rate is ___________ at 20%, which scheduled __ be reduced to 17% __ of 1 January 2014. ______ supplies are zero-­‐rated.

6.       Personal Income Tax (___)

Effective as of 1 _______ 2011, the Tax Code introduced the progressive tax ____ of Personal Income Tax (___). These tax rates apply __ almost all income received __ a resident individual in _______, regardless of the source __ income. Thus, under the ___ Code, the general tax ____ is 15%, whereas monthly ______ exceeding 10 times minimum _______ salary (i.e. UAH9, 410 __ January 1, 2011) should __ taxed at 17%. The ___________ tax rate of 15% / 17% generally applies to __ employment Ukrainian sourced income __ the tax non-­‐residents.

7.       Taxation of Property

The property owners in _______ are subject to

• land tax, or
• real estate tax (becomes _________ as of 1 January 2012).

Land Tax

Under the Tax Code, ____ Tax is established based __ 1% per annum of ___ "pecuniary valuation" of the ____. For agricultural land plots ____ Tax is established at 0,1% and 0,03% of the "_________ valuation" of land for 1__ of arable land/pastures, and 1__ of “perennial plants” lands ____________. Land Tax is paid __ a monthly basis at 1/12 of the annual tax.

Real Estate Tax

Real Estate Tax becomes _________ as of January 1, 2012. Real Estate Tax rates _____ be set up by _____ authorities but shall not ______ (1) 1% of the _______ monthly salary established as __ January 1 of a _________ year for each square _____ of an apartment with ___ residential floor area not _________ 240 m² and a _____ with the residential floor ____ not exceeding 500 m²; ___ (2) 2.7% of the _______ monthly salary established as __ January 1 of a _________ year for each square _____ of an apartment with ___ residential floor area exceeding 240 m² and a house ____ the residential area exceeding 500 m².However, the relief for 120 m² of apartments and 250 m² of houses is _______ for individual real estate ___ payers.

8.       Special tax regime ___ certain industries

Ukrainian legislation provides total _________ from taxation until 1 _______ 2020 for the following _______ of profit:

• The profit of biofuel _________ derived from the sale __ biofuels;

• Companies’ profit derived from _____ activities of simultaneous production __ electricity and thermal energy ___ (or) heat production using ________; and

• Companies’ profit derived from _____ economic activity of production ___ use of gas (methane) ____

Ukrainian legislation provides for ___ total exemption from taxation _____ 1 January 2021 for ___ following industries:

• Light  industry   (except   for   _________   with   production   based   on   ________-­‐_____   raw materials)
• Ship-­‐building industry, and
• Machine building for agro-­‐industry.

9.    Statutory Guarantees and  __________ for foreign   investors

Foreign investors are entitled __ certain privileges and guarantees _____ the Foreign Investment Law, ________ that their investments have ____ duly registered with the ___________ local state authorities.

I.   Guarantees

1.  Protection against nationalization

Foreign investment may not __ nationalized or expropriated (with ___ exception of emergency measures ____ as national disasters, accidents, _________, etc.).

2.  Guarantee in the _____ of the termination of __________ activity

Foreign investors can repatriate _____ revenues and investments from _______ free from export duties ______ six months upon the ___________ of the investment activity.

3.  Guarantee for compensation ___ reimbursement of losses

Foreign investors are entitled __ reimbursement of their losses __ connection to the failure __ the state or municipal ________ to properly discharge their ___________ to foreign investors or ___________ with foreign investments.

4.  Guarantee of repatriation __ profits

Foreign investors can freely ___ immediately repatriate their profits ___ proceeds from investment activities _____ payment of taxes, duties ___ other mandatory payments.

5.  Protection against changes __ legislation

Foreign investors are guaranteed __________ against any legislative changes _________ guarantees described above for _ period of ten years. ____ guarantee does not apply __ legislative changes on matters ________ to national security and _______, protection of public order ___ environment.

II.   Incentives

• National Regime

The national regime provides _______ investors with the same ______ and possibilities as of _________ residents.

Enterprises with foreign investment __ foreign enterprises are taxed __ their profits on a ___ with other domestic enterprises

• Enterprises with foreign Investment

Ukrainian companies, with foreign ________’_ contribution in their charter _____ amounting at least 10%. ____ may found subsidiaries, affiliates ___ branches in and outside _______ in order to conduct _____ economic activity.

• In-­‐kind-­‐investments

In-­‐kind contributions to the _______ fund of an enterprise ____ foreign investments (except for _____ for  sale  or  goods  ________  for  such  company’s  own  ___________).  In-­‐kind  investments  are  exempt ____  import duties.

III.    National Projects

«National Projects» are strategic ________ of Ukraine exercised particularly __ economic and social development _______.

All Projects are investment ____ and have three common ________:

• Scales and/or replicability: all ________ are nationally scaled (hence ____ are called “national”).
• Moving factors of development (__ specific industries or sectors __ economy: these strategic projects ____ the sector to the ___ efficiency level thus resolving ______-­‐_____ issues).
• Relevancy, drive for result: ________ have specific goals and ______________ terms as well as __________ guarantees and powerful support ____ the Government

As of 01.01.2012 the ________ Projects launched by the ___ Government of Ukraine in 2010, include the following trends:

• § «New Energy»
• «LNG-­‐Terminal» – sea terminal ___ liquefied natural
• «Energy of Nature» – ___ construction of wind, solar ___ small hydropower plants, production __ solid alternative
• § «New Life Quality»
• «Affordable Housing» – the ______ of affordable housing construction
• «New Life» – new _______ of mother and child
• «Clean City» – up-­‐to-­‐date __________ for solid waste processing.
• «Clear Water» – providing __ Ukrainian population with high _______ potable
• «Open World» – establishment __ the national educational network __ introducing information technologies (4G) ____ the education management
• “City of Future” – ___ elaboration of strategic planning ___ the system of the ____ development
• § «New Infrastructure»
• «Air Express»  –  high-­‐speed  _______  service  between  Kyiv  and  ________  International  Airport and construction __ the other infrastructure objects __ the Kyiv
• «Danube Corridor» – development __ transport communication and navigation __ the Danube
• § «Olympic Hope – 2022»
• «Olympic Hope – 2022» – creation of the sports ___ tourism
• § «Increasing production of ___________ agricultural products»
• «Grain of Ukraine» – ______ of the gross domestic _______, modernization of the grain __________ industry and increasing its ______
• «Revived Cattle breeding» – ________ food safety in the __________ of milk products and ____, increasing the export potential __ the cattle
• § «Development of the ___________ market»
• «Green markets» – development __ the network of wholesale ____________ products markets and satisfaction __ consumer

Bibliography:

http://investukraine.com/why-ukraine/facts-and-figures-ukraine
http://investukraine.com/why-ukraine/population
http://debaty.org/en/materials/article/what-are-ukraine%E2%80%99s-economic-regions http://investukraine.com/why-ukraine/economy-ukraine

investukraine .com/wp-content/.../ Foreign - investment -in- Ukraine .pdf
investukraine .com/wp-content/.../ Foreign - investment -in- Ukraine .pdf
investukraine.com/wp-content/uploads/.../Taxation-in-Ukraine_Eng.pdf
http://investukraine.com/investment-opportunities/national-projects