Legal updates (20.09.24)
The Forvis Mazars team has prepared for you a list of recent Legal updates in Ukraine.
Below, you will learn about:
- The Ministry of Finance of Ukraine has amended the criteria for determining enterprises important for the economy;
- Amendments to the procedure for booking military obliged employees;
- The Ministry of Digital Transformation has amended the criteria for determining enterprises important for the economy;
- Verification of ultimate beneficiaries and ownership structures are being strengthened;
- Updates in state registration procedures;
- National Bank continues to liberalize currency restrictions;
- Updated rules for international postal services;
- Introduced the declarative principle of obtaining permits and licenses.
Subscribe to our newsletters to get the latest news
The Ministry of Finance of Ukraine has amended the criteria for determining enterprises important for the economy
On 09.09.2024, amendments to the Criteria by which the Ministry of Finance of Ukraine determines enterprises that are important for the economy and security of the state came into force.
Key aspects:
- The separate criteria, according to which the Ministry of Finance determines enterprises to be of importance for the economy, if they meet at least one of them, have been clarified. In particular, such enterprises may be those that:
- are subjects of audit activities that provide services for the compulsory audit of financial statements under contracts with enterprises of public interest and/or enterprises of strategic importance for the economy and security of the state in accordance with the list approved by the Resolution of the Government of Ukraine No. 83 dated March 04, 2015;
- perform works and services for the Ministry of Finance on the basis of contracts (agreements, memorandums, contracts) concluded for a period of at least six months, in relation to the management of state-owned objects, implementation of the state debt policy, dispute resolution, and consideration of cases related to Ukraine's debt obligations;
- provide legal and audit services for enterprises that are managed by the Ministry of Finance or over which the Ministry of Finance exercises management or control, if the absence of such services would lead to a disruption of the stable functioning of such enterprises.
- The other criteria remain unchanged.
Amendments to the procedure for booking military obliged employees
On 30.08.2024, the Resolution of the Government of Ukraine came into force amending the procedures established by the Procedure for booking military obliged employees during the martial law.
Key aspects:
- Added that enterprises providing electronic communications services are considered critical if their average monthly revenue exceeds UAH 200 million (for mobile communications) or UAH 20 million (for fixed-line communications).
- Established that if an enterprise has only one military obliged employee, the restrictions on the number of booking employees set forth in the Procedure do not apply (as a general rule, no more than 50% of the total number of military obliged employee may be booked).
- Regulated that the issue of the possibility of booking employees of permanent representative offices of non-residents (foreign enterprises, organizations) that have been operating in Ukraine for the last two calendar years, have the appropriate accreditations (registrations) and are registered with the regulatory authorities.
- Electronic booking of military obliged employees in separate subdivisions (branches) of critical enterprises through the Diia Portal has become available.
Sources: Resolution of the Cabinet of Ministers of Ukraine “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated January 27, 2023 No. 76” dated August 16, 2024 No. 988; Communication of the Press Service of the Ministry of Agrarian Policy dated September 11, 2024.
The Ministry of Digital Transformation has amended the criteria for determining enterprises important for the economy
On August 22, 2024, amendments to the Criteria by which the Ministry of Digital Transformation of Ukraine determines enterprises that are important for digitalization came into force.
Key aspects:
- New Criteria have been added. In particular, enterprises that are important for digitalization should be:
- enterprises that supply the core of an electronic communication network to providers of electronic communication services using mobile communication networks, providers of electronic communication services to data centers, providers of electronic communication networks that provide access services to the Internet traffic exchange network;
- enterprises that administer the .ua or .ukr top-level public domain and enterprises that are operators of critical infrastructure facilities of the electronic communications sub-sector of the digital technologies sector;
- enterprises that carry out radio frequency monitoring of the use of the radio frequency spectrum by general users, perform calculations of electromagnetic compatibility and radio frequency assignment, perform the functions of administrator of the centralized database of ported numbers and provide other services stipulated by the order of the Ministry of Digital Transformation;
- as well as some other enterprises directly or indirectly involved in the digitalization of Ukraine.
Verification of ultimate beneficiaries and ownership structures are being strengthened
On September 1, 2024, the Order of the Ministry of Justice of Ukraine dated July 12, 2023 No. 2542/5 on the Procedure for Notifying the Ministry of Justice of Ukraine as the holder of the Unified State Register (hereinafter – the USR) of discrepancies between the information on the ultimate beneficial owners (hereinafter – the UBO) and/or ownership structure of enterprises received by certain subjects, in particular, the subjects of initial financial monitoring, and the relevant information contained in the USR came into force.
Key aspects:
- It has been established that if a public authority, law enforcement agency, subject of initial financial monitoring (e.g., bank, auditor, tax consultant, etc.) (hereinafter – the PFME) discovers discrepancies between the information on the UBO and the ownership structure of enterprises (discovery of incompleteness, inaccuracies or errors in such information compared to the relevant information in the USR), such subject should notify the Ministry of Justice of Ukraine within 10 working days.
- It has been provided a note in the USR on the possible inaccuracy of information on the UBO and ownership structure or the reason for the absence of the UBO and there is a risk of liability in the form of fines for providing knowingly false information, failure submission or late submission of information on the UBO and/or ownership structure of enterprise to the USR. The amount of the fine ranges from UAH 17,000 to UAH 340,000 and may be imposed on both legal entities and individuals who are founders (shareholders) of enterprises.
Sources: Order of the Ministry of Justice of Ukraine dated July 12, 2023 No. 2542/5; Order of the Ministry of Justice of Ukraine dated August 27, 2024 No. 2531/5; Order of the Ministry of Justice of Ukraine dated September 13, 2023 No. 3258/5.
Updates in state registration procedures
From September 03, 2024, new requirements for submitting documents for state registration procedures for enterprises whose founders (shareholders) are foreign enterprises came into force.
Key aspects:
- Stated that an extract, excerpt or other document from a trade, banking, court register, etc., confirming the registration of the foreign enterprise in the country of its location, should be issued no earlier than one month before the date of its submission for state registration.
National Bank continues to liberalize currency restrictions
On September 10, 2024, the Resolution amending the existing currency restrictions aimed at supporting business and counteracting capital outflows from Ukraine came into force.
Key aspects:
- Expanded the possibility of making payments under reinsurance agreements with foreign nuclear insurance pools. The only condition for these transactions is that the e-commerce entity should be registered as a taxpayer in the European Union (EU).
- Allowed to reimburse coupon payments on Eurobonds paid from February 02, 2022, to September 07, 2024 (inclusive).
- E-commerce entities are allowed to purchase foreign currency to pay value added tax in the EU on sales of goods produced by Ukrainian manufacturers.
- Tightened the restrictions on payments abroad using payment cards issued by Ukrainian banks to foreign currency accounts. In particular, a monthly limit of UAH 100 thousand has been set for the purchase of jewelry, watches and certain other valuables.
- Introduced a limit of UAH 500 thousand per month for transactions with agents and real estate managers abroad.
- From October 1, 2024, a limit of UAH 150 thousand per month has been set for card-to-card transfers of individuals. The limits apply only to outgoing transfers and do not apply to transfers between individuals' own accounts.
- In addition, on September 19, 2024, it was decided to maintain the key policy rate at 13%.
Sources: Resolution of the Board of the National Bank of Ukraine “On Amendments to the Resolution of the Board of the National Bank of Ukraine No. 18 dated February 24, 2022” dated September 06, 2024 No. 108; Resolution of the Board of the National Bank of Ukraine dated August 27, 2024 No. 102.
Updated rules for international postal services
On September 10, 2024, the Government of Ukraine updated the rules for the provision of postal services and the list of objects prohibited for transportation in postal items.
Key aspects:
- Allowed to send out of Ukraine permits for the right to bear arms, employment records books, military tickets, and identity documents. This may only be done only in registered international postal items.
- Stipulated that the sending of precious metals, numismatic products of the National Bank of Ukraine, investment coins of Ukraine, coins used for numismatic purposes and their collections outside Ukraine are carried out in registered international postal items with a declared value.
Sources: Resolution of the Cabinet of Ministers of Ukraine “On Approval of the Rules for the Provision of Postal Services” dated March 05, 2009 N 270; Resolution of the Cabinet of Ministers of Ukraine “On Approval of the List of Attachments Prohibited for Sending in Postal Items and the Procedure for Removing Attachments Prohibited for Sending from Postal Items and Disposing of Them” dated September 08, 2023 N 958.
Introduced the declarative principle of obtaining permits and licenses
On September 2, 2024, the Law of Ukraine, introducing the declarative principle of obtaining permits and licenses for the duration of martial law came into force.
Key aspects:
- Established that during the martial law, it is possible to start conducting business activities that require permits or licenses by declaring the relevant activities free of charge (except for certain high-risk activities, the list of which is determined by the Government of Ukraine). The declaration may be submitted anywhere in Ukraine, regardless of the location of the enterprise or individual entrepreneur.
- Stipulated that the declaration is equivalent to a permit, license or other results of the provision of public (electronic public) services and is valid for the period of martial law and until the end of the calendar year in which martial law will be terminated or canceled (but not less than three months from the date of its termination or cancellation). After that, the enterprise should apply for the relevant permits or licenses from the licensing authorities. In case of such an application, the declaration will be valid until the relevant permit is obtained.
- Stated that permits and licenses expiring during the period of martial law are considered to be extended for the period of martial law and until the end of the calendar year in which martial law is terminated or lifted (but not less than three months from the date of its termination or lifting). In other words, during the period of martial law, it is not necessary to reissue previously obtained permits, amend information in the declaration, etc.
- Scheduled inspections on the issuance of permits for the period of martial law have been suspended.
Contacts
Tetiana Levkivska Legal Manager
Tax and Legal news (20.08.24)
The Forvis Mazars team has prepared for you a list of recent Tax and Legal updates in Ukraine.
Legislation news in Ukraine
Find here latest Legislation news in Ukraine.