The Ministry of Finance is introducing a 30% tax on suspicious transactions: who will be affected

The Ministry of Finance of Ukraine has developed a new mechanism that allows tax authorities to impose a 30% tax on transactions deemed suspicious. This tax applies not only to legal entities and sole traders (FOPs), but also to individuals. The document also introduces a new term — ‘combined tax abuse’ — which highlights changes in approaches to the control of tax transactions.

Economist Danylo Monin has criticised this draft law, stating that the new measures could have serious consequences for taxpayers. According to him, if the tax authorities determine that a transaction constitutes tax abuse, a 30% rate will apply. Monin emphasised that the draft law imposes an excessive burden on entrepreneurs, particularly sole traders, and that even individuals could face these additional taxes due to “combined tax abuse”.

“If the tax authorities in any way determine that this is tax abuse, you’ll face a 30% rate. In reality, they have introduced a 30% rate for sole traders into the bill,” Monin stated.

The economist also noted that this draft law does not meet the needs of taxpayers and proposed that it be rejected: “That draft law is simply the Ministry of Finance’s doing; it should simply be thrown in the bin. A total rubbish bin.”

Changes to tax legislation could significantly alter the business environment in Ukraine, as the introduction of such a tax would create additional financial risks for entrepreneurs and could also lead to a decline in investment and economic activity in the country.

Furthermore, the term ‘combined tax abuse’ could create additional problems for businesses, which may face unfounded accusations from the tax authorities. Moreover, the proposed changes provide that sole traders may be registered as VAT payers without their consent, raising concerns regarding tax transparency and fairness in Ukraine.

The government must take into account the views of experts and business representatives to ensure the stability and development of the country’s economy in the context of new tax initiatives.

As a reminder, the Ministry of Finance is preparing a tax package: VAT for sole traders, a 5% levy and new rules for parcels