Changes in the list of low-tax jurisdictions: what awaits business in 2025?

The New Year brings important innovations to Ukrainian business that will affect cooperation with international partners. The government has updated the list of low-tax jurisdictions, excluding several key countries from it, such as the United Arab Emirates, Hong Kong and Cyprus. But does this mean that the rules are immediately simplified?

At first glance, the exclusion of jurisdictions from this list means less bureaucracy and reporting costs. However, there are important details that are worth knowing in order to avoid misunderstandings in 2025. In this article, we will understand how these changes will affect entrepreneurs, why operations with the UAE, Hong Kong and Cyprus still require attention, and what benefits companies working with Singapore have received.

And so, on December 27, 2024, the Ukrainian government approved changes to the list of “low-tax jurisdictions”. 41 countries and territories were excluded from it, including the United Arab Emirates, Hong Kong and Cyprus.

Although the updated list came into effect on January 1, 2025, according to the rules of the Tax Code, if the changes are adopted after November 30, they will be fully applied only from January 1 of the second following year. That is, in 2025, transactions with companies from the UAE, Hong Kong, and Cyprus will still be subject to enhanced tax control. And starting in 2026, Ukrainian entrepreneurs will be able to cooperate with them without the need to submit additional reporting. This will reduce bureaucracy and free up more time for doing business.

Transactions with companies from Singapore are a different matter. This country was excluded from the list on June 4, 2024. Therefore, starting in 2025, cooperation with counterparties from Singapore no longer requires unnecessary documents or checks, which greatly simplifies work with partners from this country.

These changes have become a great relief for business. They reduce administrative costs, provide more freedom to cooperate with international partners and reduce the risk of fines due to errors in reporting. This is a step towards making it easier for entrepreneurs to work and focus on development, attracting investments and expanding opportunities.

Thanks to such innovations, doing business becomes more comfortable and attractive for both internal and external partners.

If you have any questions about changes in the list of low-tax jurisdictions, the nuances of transfer pricing or other related topics, we will be happy to help you understand all aspects so that your business operates efficiently and without unnecessary risks.

If you want to know more or have other questions, contact us - the Antwort Law team is in touch and always ready to help!

Alina Natalushko

Lawyer
Antwort Law