Ukraine treasury residuals surge 16% in August

Ukraine’s treasury residuals surged 16.1% to UAH 23.8 bln from UAH 11.0 bln a month earlier, the State Treasury reported on Sept. 1. A year ago, treasury accumulations were almost twice as high and reached UAH 45.9 bln. 

Alexander Paraschiy: Quarterly payments on the enterprise profit tax are the main suspect for the sudden jump in residuals. Recall, in 2015 companies were required to make monthly advanced payments based on their prior-year profit. As of 2016, the government had businesses switch to quarterly payments, among the reasons for state revenue growth in May (enterprise profit tax collections tripled yoy that month). Now end-August is the time to pay the enterprise profit tax for 2Q16 and we expect a similar jump in budget revenue.