Ліга страхових організацій України

On November 7, 2018, the League of Insurance Organizations of Ukraine held a meeting of the Finance and Investment Committee. The meeting was opened by the President of LIOU Oleksandr Filonyuk, the moderator of the event was the Vice-President of LIOU Serhiy Tarasov.

S.Tarasov summed up the participants of the meeting with the main provisions of the concept of changes to the tax legislation and proposals for amendments to the Tax Code of Ukraine on harmonization of taxation of financial sector instruments prepared by the Project Office “Support to Financial Sector Reforms in Ukraine” with the support of the EBRD.

The participants of the meeting analyzed and discussed proposals for changes to the corporate income tax and the insurer’s income tax, personal income tax and insurance services for legal entities, as well as other proposals. “It is now important to assess how the proposed changes will ensure the long-term development of the insurance market, whether they are fair and whether they will create tax incentives for all participants in financial markets,” the Vice-President of LIOU said.

During the discussion, the participants noted that some of the amendments to the Tax Code of Ukraine were controversial, could lead to increased costs for insurers and would not promote the development of insurance, and therefore need to be revised.

The concept is developed for the implementation of the Integrated Program of the Financial Sector Development of Ukraine until 2020 and is based on the current configuration of the system of personal income tax and business taxation. The proposed target model, in particular, provides for: the transition from taxation of insurance premiums as part of the income tax to the indirect taxation of insurance premiums, the insurer must become a tax agent, and the insurer – a taxpayer; the exclusion of personal insurance contracts from the wage fund component, and consequently, not to tax the contributions under such revenue tax contracts (within the established tax breaks) and the only social contribution; association of personal income tax and military fee.

As a result of work, it was decided to provide comments and suggestions to participants of the meeting on the draft amendments to the Tax Code of Ukraine in the area of harmonization of taxation of financial sector instruments prepared by the Project Support Office “Supporting Financial Sector Reforms in Ukraine” with the support of the EBRD for their generalization.

Also members of the Finance and Investment Committee of LIOU discussed the issue of preparing a plan of work of the Finance and Investment Committee of LIOU in 2019 regarding the status of the implementation of the work plan of the Committee in 2018, and planned the next meeting of the LIOU Committee.

Event photos – https://www.facebook.com/uainsurcom/