[World Tax News] Ukraine Aims for OECD Membership in 2026

Editorial Team – [2025] 175 taxmann.com 164 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week:

1. Ukraine aims for OECD membership in 2026

Ukraine is targeting 2026 for its accession to the Organisation for Economic Co-operation and Development (OECD). Speaking at an OECD Council ministerial meeting, Prime Minister Denys Shmyhal confirmed that Ukraine is making a concerted effort to join the organisation next year. He detailed the country’s progress in implementing significant structural reforms, which include the adoption of 23 joint initiatives under the OECD Programme for Ukraine and accession to eight of the organisation’s legal instruments.

The Prime Minister emphasised Ukraine’s substantial achievements in combating corruption, citing the establishment of a functional anti-corruption framework and the near-full implementation of the State Anti-Corruption Programme, which is 80% compliant with OECD criteria. He also highlighted the role of digitalisation, through tools like the Prozorro e-procurement system and the DREAM digital recovery ecosystem, in increasing transparency and reducing corruption.

Furthermore, Shmyhal noted progress in deregulation, with the abolition of approximately 2,000 regulatory instruments, and advancements in privatisation and corporate governance in line with OECD standards. These reforms have reportedly led to a significant decrease in the public’s experience with everyday corruption.

Source – Announcement

2. Vietnam introduces new policies to support private sector development

Vietnam has established new policies to bolster its private economic sector through National Assembly Resolution 198/2025/QH15, passed on May 17, 2025, and implemented by Government Resolution 139/NW-CP. The following tax-related support measures are introduced, effective as of May 17, 2025, unless stated otherwise:

• For Innovative Startups – Enterprises, investment fund managers, and support organisations in the innovative startup ecosystem are granted a two-year corporate income tax (CIT) exemption, followed by a 50% CIT reduction for the subsequent four years on income from their innovation activities.
• For Small and Medium-Sized Enterprises (SMEs) – Newly established SMEs will receive a three-year CIT exemption starting from their initial business registration.
• For Capital Gains – Profits from the sale or transfer of shares, capital contributions, or related rights in innovative startup enterprises are exempt from both personal and corporate income tax.
• For Specialised Talent – Experts and scientists working for innovative startups, R&D centers, and similar support organisations will have their salary income exempted from personal income tax for two years, with a 50% reduction for the next four years.
• For Corporate Training and R&D – Large corporations can deduct expenses for training SMEs within their supply chains. Furthermore, all businesses can now deduct 200% of their actual research and development expenditures for CIT purposes.
• Science & Technology Fund – Businesses may now deduct up to 20% of their taxable income by allocating it to a fund for science, technology, innovation, and digital transformation.
• Regulatory Changes – Effective January 1, 2026, the Presumptive Tax Method for household and individual businesses will be abolished, transitioning them to standard tax payment rules. The collection of the Business License Fee will also cease from the same date.

Sources:
• Resolution 198
• Resolution 139

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