Boryspil Airport Pays UAH 2049 Million Instead of Planned UAH 876 Million to State

10 February 2020

With regard to the news published by the Office of Prosecutor General dated 07.02.2020 stating the “provision of reimbursement to the state budget of more than UAH 263 million in the form of tax”, as well as due to receiving a lot of requests regarding this issue, Boryspil Airport provides its substantive and distinct position.

First of all, Boryspil International Airport State Enterprise does not have and never had any debt for taxes and charges payments by the results of 2019. Airport is one of the largest tax payers among all state enterprises, in particular of infrastructural branch. The absence of debts is proved both by the regular reconciliation reprots with the State Tax Service of Ukraine, and by the letters of Large Taxpayers Office of the State Tax Service of Ukraine, Boryspil Airport being one of them.

There was the controversial ratio of assignments to the budget in terms of dividend (a part of net profit/income) payments in 2019. At the same time, as of 10 February 2020, Boryspil Airport has no dividend payments debt.

To recall, the ratio of 90% dividend payments was established after the approval of the Enterprise Financial Plan for 2019 by the Cabinet of Ministers of Ukraine. According to the Financial Plan of the Enterprise the expected ratio was 40%. The decreased ratio of dividend payments, approved by Boryspil Airport Financial Plan, provided the possibility of the airport  infrastructural development (apron construction, Terminal D pier extension, Cargo Terminal and Central Fuel Station reconstruction) and bounded the Airport to direct the fixed amount of finances for capital costs, in particular the abovementioned objects.

At the same time, after inconsistency settlement in 2019 Boryspil Airport completely fulfilled the Decree of Cabinet of the Ministers of Decree regarding the payment of 90% ratio to the state.

Thus, in 2019, instead of UAH 876 million payments to the state planned and approved by the Cabinet of Ministers of Ukraine as per Financial Plan, the Enterprise actually paid UAH 2049 million to the state.

As a result of 90% dividends deduction from the Airport, the implementation plans regarding the majority of infrastructural projects are suspended or their implementation period was prolonged to three and a half years instead of a year.

Therefore, there are no liabilities imposed on the Airport regarding tax, charges or other payments to the state.

Nevertheless, we underline once again the necessity of revising the ratio of dividend payments for Boryspil Airport for further successful infrastructural development.