Analysis of the draft law:
Analysis of the Draft Law on Amendments to the Tax Code of Ukraine
Dear readers, today I will analyze a draft law aimed at harmonizing the Tax Code of Ukraine with the Law of Ukraine “On Integrated Prevention and Control of Industrial Pollution.” The essence of the changes lies in the introduction of the concept of “integrated environmental permit” in the context of taxation, which relates to water use, waste treatment, and other environmentally important activities. These changes are aimed at bringing tax legislation in line with new environmental requirements and standards.
Structure and Main Provisions of the Draft Law
The draft law consists of two main sections. The first section amends Articles 250, 252, 255, and 258 of the Tax Code of Ukraine. The changes concern the replacement of the words “water use and waste disposal” with the words “water use, waste treatment operations, and/or integrated environmental permits,” as well as supplementing the provisions on special water use with mentions of integrated environmental permits. The second section defines the date of entry into force of this Law – August 8, 2025.
Main Changes and Their Significance
Let’s consider the key provisions that may be important for various stakeholders:
- For legislators: The draft law harmonizes tax legislation with environmental legislation, which is important for fulfilling Ukraine’s international obligations and enhancing environmental safety.
- For experts: The changes require a revision of the methodology for calculating tax liabilities related to the use of natural resources and environmental pollution.
- For business: Enterprises that obtain integrated environmental permits will have to take these permits into account when calculating taxes, which may affect their financial planning and investment decisions.
- For citizens: The introduction of integrated environmental permits will help reduce industrial pollution, which will have a positive impact on public health and the state of the environment.
Overall, this draft law is an important step towards the environmental modernization of Ukraine and the harmonization of legislation with European standards.
Analysis of the explanatory note:
Analysis of the draft Law of Ukraine “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”
Good day! Let’s consider this important draft law, which aims to harmonize the Tax Code of Ukraine with the new Law “On Integrated Prevention and Control of Industrial Pollution.”
1. Essence of the draft law
This draft law amends the Tax Code so that tax authorities can properly administer environmental tax and royalty payments, taking into account the new integrated environmental permits that will replace the old emission and water use permits. In fact, this is a technical adaptation of tax legislation to environmental changes.
2. Reasons for and necessity of adopting the draft law (from the author’s point of view)
The authors of the explanatory note emphasize that this is necessary because the new Law No. 3855-IX provides for the replacement of old permits with integrated environmental permits. In order for the tax authorities to continue collecting environmental taxes and royalty payments, they need data from these new permits. If changes are not made to the Tax Code, a legal conflict will arise, and the tax system will not be able to function effectively.
3. Main consequences of the draft law
Here are the main consequences that may be important for various stakeholders:
- For legislators: The draft law will ensure the consistency of environmental and tax legislation, which will avoid problems with the administration of taxes related to industrial pollution.
- For experts: It is important for experts that the draft law adapts existing regulations to new environmental requirements, ensuring legal certainty.
- For business: Enterprises that receive integrated environmental permits will need to take the data from these permits into account when calculating environmental tax and royalty payments. It is important that the transition period (4 years) is used effectively to adapt to the new requirements.
- For citizens: Although there is no direct impact on citizens, the draft law promotes more effective control over industrial pollution, which could potentially improve the environmental situation and public health.
Overall, this is an important technical draft law that will ensure the stability of the tax system in the context of changes in environmental legislation. I hope this analysis was helpful!
Analysis of other documents:
Analysis of documents on the draft Law of Ukraine “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”
1. Position of the authors of the documents:
- Cabinet of Ministers of Ukraine: Is the initiator of the draft law, which indicates support (letter from the Prime Minister).
- Verkhovna Rada Committee on Integration of Ukraine with the EU: The provisions of the draft law are regulated by the national legislation of the EU member states and do not fall under the scope of Ukraine’s international legal obligations in the field of European integration.
- Verkhovna Rada Committee on Environmental Policy and Nature Management: Supports the draft law, believing that it harmonizes the provisions of the Tax Code and the Law “On Integrated Prevention and Control of Industrial Pollution.”
- Main Scientific and Expert Department of the Verkhovna Rada Apparatus: Does not object to the proposed changes but provides technical comments.
- Verkhovna Rada Committee on Budget: Notes that the draft law will not have a direct impact on budget indicators.
- Verkhovna Rada Committee on Finance, Tax and Customs Policy: Recommends that the Verkhovna Rada adopt the draft law as a basis.
- Ministry of Finance of Ukraine: Supports the draft law.
- State Tax Service of Ukraine: Supports the draft law with comments on the timing of information provision.
2. Main provisions of the documents, important for stakeholders:
- Harmonization of the Tax Code with the Law on Integrated Prevention and Control of Industrial Pollution: The draft law aims to bring tax legislation into line with environmental legislation, which is important for enterprises that will need to obtain integrated environmental permits.
- Obligation of environmental tax and royalty payers to take into account the data of integrated environmental permits: This will affect the calculation of tax liabilities of enterprises, which requires careful study of changes in legislation and adaptation of accounting systems.
- Obligation of bodies issuing integrated environmental permits to provide information to tax authorities: This will strengthen control over compliance with environmental legislation and tax payments, which is important for the state and society.
- Comments of the State Tax Service regarding the timing of information provision: This aspect requires further consideration, as timely receipt of information is critical for effective tax administration.
- Technical comments of the Main Scientific and Expert Department: It is important to take these comments into account to avoid legal conflicts and ensure clarity of wording in the law.
- Provisions of the transition period: Permits for emissions, special water use, and waste treatment remain valid for four years from the date of entry into force of the Law.
