Client Alert

Tax Losses for 2008 May Be Deducted in 2009

Client Alert

May 18, 2009

Below, we provide the updated information regarding the utilization of tax losses for 2008 during 2009 that we addressed in our Client Alert issued on May 13, 2009.

Resolution of the Cabinet Ministers of Ukraine No 427 of April 22, 2009, which prohibited the utilization of the above tax losses, has not been published and has not come into force. Moreover, today various sources announced that on May 14, 2009, the State Tax Administration of Ukraine issued the internal telegram addressed to the local tax authorities. In this telegram, the State Tax Administration revoked its previous internal telegram which followed the above Resolution and prohibited the tax deduction of tax losses for 2008 in 2009.

Accordingly, currently the taxpayers are allowed to deduct their tax losses for 2008 in the corporate profits tax returns for the periods of 2009.

We hope that the issue regarding the utilization of the tax losses for 2008 has been successfully resolved and will not arise again.