LAW OF UKRAINE

of July 1, 2021 No. 1605-IX

About introduction of amendments to the Tax Code of Ukraine concerning elimination of contradictions and refining of determination of leasing, rent transaction

The Verkhovna Rada of Ukraine decides:

I. Bring in the Tax code of Ukraine (Sheets of the Verkhovna Rada of Ukraine, 2011, Art. No. No. 13-17, 112) the following changes:

1. In Item 14.1 of Article 14:

1) in subitem 14.1.97:

paragraphs the first, the second, fourth and fifth to state in the following edition:

"14.1.97. leasing transaction (except transactions on chartering (charter) of ocean ships and other vehicles) - transfer of fixed assets to ownership and use to physical persons and/or legal entities (leasing recipients) for a fee and for certain term.

Leasing transactions are performed in the form of operational leasing (lease), financial leasing, transactions on the return leasing";

"a) operational leasing (lease) - transaction of legal entity or physical person (lessor/lessor) on which the lessor/lessor gives to other person (leasing recipient/lessee) the fixed assets acquired or made by the lessor/lessor on the terms of others, than are provided by financial leasing;

b) financial leasing - economic activity of the legal entity (lessor) on which the lessor gives to the leasing recipient property which is fixed asset and acquired or made by the lessor, and also all risks and remunerations connected with right of possession and uses of object of financial leasing";

after the paragraph of the fifth to add with the new paragraph of the following content:

"The terms "financial leasing" and "finance lease" for the purposes of of this Code are identical".

With respect thereto paragraphs of the sixth - to consider the fifteenth respectively paragraphs the seventh - the sixteenth;

paragraphs the seventh, the eighth, tenth and eleventh to state in the following edition:

"Leasing is considered financial in the presence of at least one of the following conditions:

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