The law on financial restructuring and taxation of financial leasing has been adopted

On December 20, 2019, the Parliament of Ukraine adopted the Law “On Amendments to the Tax Code of Ukraine in connection with the improvement of the procedure of financial restructuring and the improvement of taxation of financial leasing operations”.

The law is designed to create an effective and efficient mechanism for the financial restructuring of Ukrainian enterprises to facilitate the resumption of a debtor’s critical financial position by restructuring its debt and / or its economic activity, maintaining the stability of the financial system and ensuring access to the debtor to financing for the resumption of its economic activity.

The adoption of this law was actively supported by the Ukrainian Union of Lessors and became our mutual victory.

The law amended the Tax Code of Ukraine, according to which, in particular:

on value-added tax:

– Provisional rule (paragraph 46, subsection 2, subsection 2, section XX, “Transitional Provisions” of the Tax Code of Ukraine), extended to January 1, 2023, regarding the exemption from value-added tax of transactions for the supply of goods by the debtor for the purpose of repayment of its debt to creditors in the course of the financial restructuring procedure, as well as such exemption for the supply of goods by the guarantor (property guarantor – mortgagor, mortgagee);

– exempt from value-added tax transactions of banks and other financial institutions for the supply (sale, alienation by other means) of property received from debtors, guarantors (property guarantors – mortgagors, mortgagees) of debtors for transactions in the supply of goods that are released from taxation in accordance with clause 46 of subsection 2 of section XX “Transitional Provisions” of the Tax Code of Ukraine (supplement with new clause 197.14 of article 197) and determined the base of taxation of value-added tax for such transactions in that part of the value of the property to be taxed (amendment of Article 189.15).

– clarified the rules for determining the value-added tax base for transactions in the supply of goods that were returned to the lessor by the lessor under the financial leasing contract due to its non-performance or improper performance (amendments to Article 189.5, paragraph 189.5).

With regard to corporate income tax, the temporary standard (item 39, subsection 4, section 4, section XX, “Transitional Provisions” of the Tax Code of Ukraine), was extended until January 1, 2023, regarding the peculiarities of tax accounting for corporate income tax in the course of financial restructuring and to make terminological changes to that norm.

Also, terminological changes have been made to item 37 of subsection 10 of section XX, “Transitional Provisions” of the Tax Code of Ukraine, which defines the peculiarities of implementation by the controlling bodies of the restructuring plan or the rehabilitation plan.

The law shall enter into force on the day following its publication.

The Draft Law was registered under No. 2358.


Association Ukrainian Union of Lessors (UUL) was founded in 2005 as a voluntary union of professional participants of the leasing market. The nonprofit Association’s primary objective is to promote development of the open and equal-accessible market of operational and financial leasing in Ukraine by co-ordination of enterprises’ activities in order to protected shared interests. Currently, the UUL unites 27 companies, among them leading leasing companies and representatives of contiguous markets. The UUL is the only professional association in the industry, with members representing approximately 80% of Ukraine’s finance lease market. For additional information about UUL, please contact Maryna Masich, CEO, at: +38 (093) 381 51 00; You may also visit its website at:


+38 044 529 46 90

+38 093 381 51 00