Tax and Legal news (11.10.24)
The Forvis Mazars team has prepared for you a list of recent Tax and Legal updates in Ukraine.
Below, you will learn about:
- Updated the procedure for conscription of citizens for military service;
- Ukraine will recognize qualified electronic signatures of EU countries;
- Rules for booking military liable by “Diia” have been updated;
- The “white business club” was launched;
- Permanent and temporary residence permits are now available in “Diia”;
- Additional grounds for dismissal of employees;
- The Ministry of Digital Transformation has launched the “e-residency” project.
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Updated the procedure for conscription of citizens for military service
On October 03, 2024 and October 04, 2024, resolutions of the Government came into force amending the Procedure for Conscription of Citizens for Military Service during Mobilization for a Special Period.
Key aspects:
- Military liable and volunteer reservists are allowed to choose a military unit for service without applying to Territorial Recruitment and Social Support Centers (hereinafter – TRSSCs).
- Commanders of military units are authorized to issue referrals to the military medical commission for determination of the suitability for the military service and to manning combat units with volunteers who wish to serve under conscription during mobilization.
- The period within which the military liable who have received a summons and have to come to the TRSSCs has been reduced. Therefore, the military liable has to come to the TRSSC within 7 days if the military liable lives in a regional center, and within 10 days if the military liable lives in other settlements.
Sources: Resolution of the Cabinet of Ministers of Ukraine “On Amendments to the Procedure for Conscription of Citizens for Military Service during Mobilization, for a Special Period” dated October 01, 2024, No. 1130; Resolution of the Cabinet of Ministers “On Amendments to Clause 34 of the Procedure for Conscription of Citizens for Military Service during Mobilization, for a Special Period” dated October 01, 2024, No. 1134.
Ukraine will recognize qualified electronic signatures of EU countries
On October 03, 2024, a resolution of the Cabinet of Ministers of Ukraine came into force, which provides the use of the Trust List for mutual recognition of e-trust services between Ukraine and the EU. In particular, it is allowed to use qualified electronic signatures of EU countries in Ukraine, and it is also allowed to include foreign providers of electronic trust services in the Trust List. As a result of these changes, EU citizens will be able to sign electronic documents in Ukraine with their qualified electronic signatures obtained in an EU country.
Rules for booking military liable by “Diia” have been updated
As of October 02, 2024, the updated Procedure for booking military liable during martial law by “Diia” portal is in effect.
Key aspects:
- Stated that only those military liable who are registered for personal military service at the enterprise can be included in the reservation list.
- Сlarified the requirements for the information to be included in the reservation lists. In addition to the surname, full name, patronymic (if any), identification number and the period of validity of the deferment, the following information will be required:
- details of the military registration document (in paper or electronic form);
- military specialty;
- the date of the update of military registration data.
- The transfer of military liable to a special military registration for the period of deferment is automatic, in such cases:
- the military liable is registered for military service and has a military registration document (in paper or electronic form);
- the military liable has updated information on military registration in accordance with the requirements of the law;
- the military liable is not on the wanted list.
The “white business club” was launched
On October 01, 2024, the provisions of the Law of Ukraine on the introduction of special taxation rules for taxpayers with a high level of voluntary compliance with tax legislation came into force, which will act until the termination or lifting of martial law in Ukraine.
Key aspects:
- In order to be included in the list of such taxpayers, companies have to meet certain requirements and criteria:
- tax debt or arrears of other payments controlled by the tax authorities does not exceed UAH 51,000 and no more than 30 days have passed since their occurrence;
- absence of debt (arrears, fines, penalties) in the payment of the unified social contribution;
- absence of violation of tax obligations to submit reports or documents;
- absence of changing the main type of economic activity in the Unified State Register during the last 12 calendar months;
- the company and its beneficiaries are not subject to sanctions under the Law of Ukraine “On Sanctions”;
- other criteria defined by law.
- The main advantage of being on the such list is the introduction of a moratorium on certain inspections by the controlling authority and a reduction in the timeframe for such inspections, individual tax consultations and reservation of employees liable for military service.
For more details on the amendments to the Tax Code of Ukraine concerning the “white business club”, the Forvis Mazars team analyzed in previous legal news digests.
Permanent and temporary residence permits are now available in “Diia”
On October 01, 2024, the Government's resolution came into force, according to which foreigners residing in Ukraine can use electronic permanent or temporary residence permits by uploading them to the “Diia” application. In order to upload the document to the application, you should have a tax ID issued in Ukraine and log in to “Diia” using one of the banks that is a member of the BankID system. The document can be used to identify a person or to obtain relevant services.
Additional grounds for dismissal of employees
On September 27, 2024, the Law of Ukraine amending the Labor Code came into force, which provides new grounds for termination of employment.
Key aspects:
- New grounds for termination of an employment contract concluded for an indefinite period, as well as a fixed-term employment contract by the employer before its expiration, have been defined:
- Entry into force of a court verdict convicting an employee (except for probation) of a crime against the national security of Ukraine. Dismissal on this basis is permissible if the employee is sentenced to imprisonment or other punishment based on a court verdict that excludes the possibility of continuing such work. In this case, the employee is subject to dismissal within three days from the date of receipt by the employer of a copy of the relevant court decision.
- Failure to comply with the rules of conduct at the enterprise. In this case, dismissal is permitted if the employee fails to comply with the rules set forth by the employer in the internal labor regulations, namely, disclosure of restricted information, including information constituting a state or commercial secret, as well as the conditions of work with confidential information.
The Ministry of Digital Transformation has launched the “e-residency” project
On September 27, 2024, the Ministry of Digital Transformation of Ukraine officially launched an e-residency program called uResidency, which provides foreign citizens with the opportunity to conduct business in Ukraine remotely.
Key aspects:
- Foreigners have the opportunity to conduct business in Ukraine as individual entrepreneurs (hereinafter – IEs) in the areas defined by the program (specialists in software development, gaming, educational technologies, media, creative industry, marketing, translation, web design, sales, law, project management, communications, and other areas), open and manage bank accounts without physically being in Ukraine.
- The tax agent for e-residents is a bank (in which the e-resident has opened a current account) that independently calculates taxes and submits tax returns, thus relieving the e-resident of the need for physical interaction with government agencies.
- The tax rate for e-residents is 5% of income and a limit of up to EUR 180,000, and if the limit is exceeded, the tax rate is 15%.
- The program is currently available to citizens of India, Pakistan, Thailand, and Slovenia. The list of countries will be expanded in the future.
Source: Official announcement of the Ministry of Digital Transformation of Ukraine dated 27.09.2024.
Contacts
Tetiana Levkivska Legal Manager
Olha Konyuchenko Head of Tax Practice
Legal updates (20.09.24)
The Forvis Mazars team has prepared for you a list of recent Legal updates in Ukraine.
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