«Tax» Law No. 5600 to Prevent 6,192 Company Directors from Leaving Ukraine

The Verkhovna Rada of Ukraine adopted the “Tax” draft No. 5600 in the second reading on November 30.

In particular, it stipulates a temporary restriction on the right to leave Ukraine for company directors whose debts to the State Tax Service of Ukraine exceed UAH 1 million and are unpaid for 240 calendar days. Company directors will not be able to go abroad until they pay off such debts.

Judges only need the decision of the head of a supervisory body, i.e., the State Tax Service of Ukraine, for the court to recognize the company’s debt.

Based on the court decision, the debtor will be included in the registry of directors of legal entities with tax debt over UAH 1 million. The law does not specify who will manage this registry and whether it will be public, etc.

Opendatabot has calculated that 6,192 companies currently have debts that exceed UAH 1 million, which means that some 6,200 directors of Ukrainian companies may not be able to travel abroad shortly.

«The law creates a new registry of debtor company directors, which will require new tax resources for its administration. At the same time, the State Tax Service of Ukraine and the Ministry of Finance of Ukraine have not been able to improve the quality of tax debt publication for three years — the information is published with a one-month delay and without the necessary data on PEs»,

— Oleksii Ivankin, Head of Opendatabot, comments.

To recap, simply install Opendatabot in the messenger of your choice and enter the company code to check your company’s tax debt.

To check the company’s tax debts:

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1. Send the company name or code to the bot.
2. Check tax information: tax debt, single tax payer status, and VAT payer status.
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