Photo from UNIAN
The share of profit payment may be reduced per each particular enterprise to facilitate investment programs.
Ukrainian Prime Minister Volodymyr Groysman has announced that the Cabinet of Ministers has increased the requirement for the payment of net profit by state-owned enterprises to the national budget in 2019 to 90% from 75%.
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"This is the revenue stipulated by the law on the national budget for 2019. It is very important for the implementation, among other things, of the state's social guarantees before citizens. We have defined a mechanism that will allow the companies – through their business planning and smaller percentage of payments [to the national budget] to be approved by the government – to implement their investment programs," he said at a government meeting on April 25.
Thus, the share of profit payment may be reduced per each particular enterprise to facilitate its investment program.
As UNIAN reported earlier, the Cabinet of Ministers in February 2018 increased the share of dividends due to be paid to the national budget by companies with a dominant state share in 2017 to 75% from 50% of their net profit.
Ukraine's 100 largest state-owned companies in the first half (1H) of 2018 saw their net profit plunge to UAH 21.5 billion (US$808.6 million), which was 41.9% down year-over-year (y-o-y).
In 2017, the Top 100 state-owned enterprises posted UAH 44.4 billion ($1.7 billion) in net profit against UAH 26.4 billion ($992.9 million) in 2016.