Offshore realities: risks, challenges and prospects
One of the main business events in the fiscal sphere this fall, INTAX EXPO, which took place in Moscow, was attended by more than 415 participants, representing 43 jurisdictions. In the course of the lecture program Ukraine was represented by Yaroslav Abramov, who made a presentation, dedicated to peculiarities and prospects of tax planning and corporate structuring of international companies, operating in Ukraine.
In the theoretical part of the presentation, Mr. Abramov made a short excursus to the Ukrainian normative basis of taxation, cited statistics, demonstrating annual increase of Ukrainian residents’ operations with offshore companies and showed imperfections and the hidden risks of the Ukrainian tax legislation for non-residents. During the practical part of the speech, the expert outlined the most typical schemes of withdrawal Ukrainian assets to offshore and their step-by-step implementation. He also explained the key parameters to be taken into consideration while choosing jurisdiction and the mechanism of using offshore companies. The culminating issue of Mr. Abramov’s presentation was the consideration of further prospects of offshore business in light of legislative changes, including the amendments to the Law “On Mandatory State Pension Insurance”. These changes provide the introduction of extra charge on offshore transactions.
Summarizing the results of the INTAX EXPO conference, Yaroslav Abramov noticed: “Issues of tax optimization with the use of offshore are becoming more and more important. So during my participation in the conference INTAX EXPO, the State Committee of Ukraine for Regulatory Policy and Entrepreneurship imposed the additional charge at the rate of 12% on transactions of Ukrainian business with companies, registered in offshore jurisdictions. Besides, legislative innovations provide the payment of 5% of the income in the form of dividends, interest and royalties to non-resident” (extended comment Mr. Abramov on this issue, see Ъ of 14.09)