IMF Country Reports cover economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
Tax policy in Ukraine is engaged in two fronts at once. On one front, very significant work has
been done over the years on the gradual improvement and updating of the tax system; on the
other, it questions essential tenets of the existing system, exploring fundamental changes to it.
While serious efforts have been devoted, for example, to the modernization of the international
aspects of the income tax, upgrading the regime to OECD standards, there is a strong push from
some quarters of the policy debate to do away with the Corporate Profit Tax (CPT) altogether.
The central idea is to replace it with a Distributed Profit Tax (DPT), generally referred to in
Ukraine as the Exit Capital Tax (ECT). In essence, this system would not tax profits as they accrue
to the corporation, deferring the tax to when the corporation distributes dividends to the