MPs adopted as a basis the draft law No. 13157 “On Amendments to the Tax Code of Ukraine in connection with the adoption of the Law of Ukraine ‘On Integrated Prevention and Control of Industrial Pollution’.
This information is available in the draft law card. Here you can also find the text of the document, an explanatory note to it and a comparative table.
235 MPs voted in favor of the adoption of this legal act, while no votes were cast against it. However, the proposal to halve the timeframe for preparing draft law No. 13157 for the second reading was not supported by the MPs, as there were not enough votes.
The card also states that the draft law was adopted as a basis “with the provisions finalized in accordance with Part 1 of Article 116.”
Why did it become necessary to amend the Tax Code?
In the explanatory note to this draft law, the Ministry of Finance of Ukraine justifies the need for a new document with the following theses
- with the adoption of the Law of Ukraine No. 3855-IX “On Integrated Prevention and Control of Industrial Pollution”, which comes into force on 08.08.2025, it is planned to replace the current permits (for emissions, water use and waste management) with integrated environmental permits;
- the old permits will be valid for a maximum of 4 years after the entry into force of the law or until the integrated permit is obtained, but during the transition period, operators can still obtain traditional permits until the integrated environmental permit is obtained;
- after the companies receive integrated environmental permits and the old-style permits become invalid, the Tax Code should be updated to ensure proper administration of environmental tax, subsoil and water rents so that tax authorities have access to data from the new integrated permits.
What changes are proposed
According to the comparative table to this draft law, 4 articles of the Tax Code will receive additional parts:
- Art. 250 “The Procedure for Submitting Tax Reports and Paying Tax” (specifically on environmental tax);
- Art. 252 “Rent for the use of subsoil for the extraction of mineral resources”;
- Art. 255 “Rent for special use of water”;
- Art. 258 “Responsibility of Rent Payers and Control over its Collection”.
The amendments to the Code provide for the following obligations:
- for payers of environmental tax and rent for special water use – to calculate their tax liabilities based on data from integrated environmental permits;
- for the authorities issuing integrated environmental permits – to provide the tax authorities with a list of business entities that have been issued such permits.
As EcoPolitic reported in early April, the Cabinet of Ministers of Ukraine approved a draft law developed by the Ministry of Finance of Ukraine that would oblige payers of environmental tax and rent for special water use to calculate their tax liabilities based on data from integrated environmental permits.
