We would like to draw your attention to the following fact: Commencing 1 January 2018, the payers of environmental tax should apply the respective tax rates increased by 11.2 percent when determining the environmental tax liabilities that are to accrue from 1 January 2018 and are due on taxable items.

Pursuant to Section 240.1 of Article 240 of the Tax Code of Ukraine, payers of environmental tax include business entities, legal entities that do not carry out business (entrepreneurial) activities, budgetary institutions, socially-owned and other companies, establishments and organizations, non-residents’ permanent representative offices, including those carrying out agency (representative) functions with respect to such non-residents or their founders, whose operations on the territory of Ukraine, within the Ukrainian continental shelf and exclusive (marine) economic zone, are resulting in:

  • Emissions of pollutants into the atmospheric air, caused by stationary sources of pollution
  • Emissions of pollutants directly into water objects
  • Waste disposal (except for disposal of certain types (classes) of waste as recyclable materials, provided that such waste is disposed on the facilities (territories) owned by business entities)
  • Production of radioactive waste materials (including those already accumulated)
  • Temporary storage of radioactive waste materials by their producers during a period of time, exceeding the time limit set by the special terms of the license.

It should be pointed out that waste disposal means permanent (ultimate) storage or burial of waste in the special areas or facilities (waste disposal areas, storage facilities, landfills, complexes, installations, subsoil blocks, etc.), the utilization of which is governed by the special permits issued by authorized bodies (Subsection 14.1.223 of Section 14.1 in Article 14 of the Tax Code of Ukraine).

In particular, pursuant to Sections 39 – 43 of Article I of Law of Ukraine dated 07.12.2017, No. 2245 On Introduction of Amendments into the Tax Code and Other Legislative Acts of Ukraine for the Purpose of Ensuring Balanced Budgetary Receipts in 2018, which entered into full force and effect on 1 January 2018, new amounts of the environmental tax rates have been set, in comparison with the rates which were applicable in 2017, and such environmental tax rates have been increased by 11.2 percent; specifically, the new rates are stipulated by:

  • Sections 243.1-243.4 of Article 243 of the Code, specifically: rate of the tax due on emissions of certain pollutants into the atmospheric air, caused by stationary sources of pollution; rates of the tax due on stationary sources’ emissions into the atmospheric air of pollutants (compounds), which are not listed in Section 243.1 of this Article and are falling within a certain substance hazard category (except for carbon dioxide), shall be applicable subject to determined approximately safe impact levels of such substances’ (compounds’) impact on the atmospheric air of urban settlements; and rates of tax due on emissions of carbon dioxide
  • Sections 245.1 and 245.2 of Article 245 of the Tax Code of Ukraine: rates of tax due on emissions of certain pollutants into the water objects
  • Sections 246.1 and 246.2 of Article 246 of the Tax Code of Ukraine: rates of tax due on disposal of waste in specially designated areas or objects
  • Section 247.1 of Article 247 of the Tax Code of Ukraine: rates of tax due on production of radioactive waste materials (including already accumulated waste materials of such type)
  • Section 248.1 of Article 248 of the Tax Code of Ukraine: rates of tax due on temporary storage of radioactive waste materials by their producers during a period of time that exceeds the time limit set by the special terms of the license.

It is determined by Article 250 of the Tax Code of Ukraine that a base tax (reporting) period shall be equal to a calendar quarter.

In addition to the above, the Unified Register of Environmental Impact Assessment is operating as of January 2018 (see for more details: http://eia.menr.gov.ua/). The aforesaid Register was elaborated as a result of the drafting of the new law regarding environmental impact assessment, which entered into full force and effect on 18 December 2017. The register is to include reports and opinions related to the environmental impact assessment throughout Ukraine, which will result in: (1) the authorized bodies’ ability to properly control the activities fraught with potential threats to the environment; (2) provision, in an appropriate manner, of information to the general public in connection with development of the territories as well as exercise of public control over performance of the activities fraught with potential threats to the environment.

The Ministry of Ecology and Natural Resources of Ukraine is vested with the duties to enter data into, and maintain, the Register, and the Ministry’s department of environmental impact assessment shall deal directly with the issues related to such assessment (Email: m.shimkus@menr.gov.ua).