News from Ukraine

  • To Petya or NotPetya; this is how to protect yourself!
    A new ransomware has risen and is spreading across Europe like wild fire. This new malware is creating chaos across businesses, from supermarkets to shipping ports, ad agencies and law firms. The new ransomware - code named “NotPateya” - shares some very similar characteristics to a very recent malware “Wannacry”. About NotPateya NotPateya gets its name from an older malware...
  • Visa-free EU regime introduced for Ukraine
    The Ukraine-EU relations have recently reached a new milestone following an ongoing trend of positive developments. After long negotiations and numerous delays, on May 17, 2017, Ukraine and the EU finally signed a legislative act granting an EU visa-free regime for Ukrainian citizens. At a press conference following the signing ceremony, the President of Ukraine, Petro Poroshenko, stated: “Today is...
  • Ukraine lowers rate of tax on dividends
    The Parliament of Ukraine has decreased the personal income tax rate from 18% to 9% under certain conditions. It is expected that the law - adopted on 23rd March 2017 - will be applicable retroactively from 1 January 2017 for the following cases: - dividends coming into Ukraine from foreign sources accrued on shares, investment certificates and corporate rights; -...
  • National Bank of Ukraine simplifies currency control rules
    The National Bank of Ukraine has recently announced some changes in currency control rules. The changes were approved by the National Bank of Ukraine on February 23, 2017 and took effect from 25 February 2017. The National Bank adopted the below simplifications: - Cancelation of individual licenses for Ukrainian individuals from the National Bank of Ukraine - Simplification of foreign...
  • Ukraine’s new financial restructuring law enters into force
    On 14 July 2016, the Ukrainian Parliament adopted the Law of Ukraine “On Financial Restructuring” No. 1414-VIII (the “Law”) which, based on its transitional provisions, entered into force on 19 October 2016 and will remain valid for 3 years as of the day of its entrance into force. The Law introduces the procedure of voluntary financial restructuring of legal entities...
  • Cyprus-Ukraine DTT: Application of the reduced WHT rate
    On October 6th 2016, the Ukrainian State Fiscal Service (“USFC”) released Guidance Letter № 21833/6/99-99-15-02-02-15 (“Letter”), which clarifies the terms of application of the reduced rate of withholding tax (“WHT”) on dividends, paid by an Ukrainian legal entity to a Cypriot legal entity according to the provisions of the effective double-tax treaty (“DTT”), signed between Cyprus and Ukraine in 2012....
  • Exchange of financial account information: Today`s reality for Cypriot and Ukrainian taxpayers holding accounts abroad
    The various instances of information leaks (Falcian`s Swissleaks, Luxembourg Leaks, Swiss Leaks, Panama Leaks), as well as the requirements on information exchange between countries imposed by international organizations (FATF, OECD), the EU legislation and domestic laws, essentially eliminate the possibility of any individual or company keeping a bank account abroad to bypass the regulations. Since the OECD has passed its...
  • Current trends and legislative aspects of e-commerce in Ukraine
    The wide-spread use of the Internet, the development of digital technologies and online payment systems, as well as the increased e-documents turnover all facilitate the rapid growth of the e-commerce market in Ukraine. Entities introduce e-solutions into their businesses in order to attract new clients by means of implementing the possibility for customers to pay online or to transfer money...
  • Investing into Ukraine through a Cyprus Alternative Investment Fund
    During the last 6 months, Cyprus has taken one of the top places among foreign direct investors into the Ukrainian economy. Thus, as of the 1st April 2016, the amount of Cyprus investments into the share capital of Ukrainian entities exceeds 25% of all foreign investments. Various factors are considered to have enhanced the increase of investments in Ukraine, including...
  • Ukraine’s new law on protection of investors’ rights
    The Law No. 289-VIII, dated 7 April 2015, regarding the improvement of the legal framework for protection of investors’ rights in Ukraine came into effect on 1st May 2016. The Law includes important changes into Commercial Procedural Code of Ukraine and corporate legislation of Ukraine. This Law introduces the following changes: derivative action rules new corporate governance concept updates in...
  • Ukrainian Merger Control Developments
    On January 26th, the Ukrainian Parliament passed the Draft Law No. 2168a Ukraine “On Introducing Changes to the Law of Ukraine “On the Protection of Economic Competition” Regarding Improvement of the Efficiency of Merger Control System” introducing some highly anticipated merger control system improvements. The law came into force on 18 May 2016. The amended law significantly improves Ukraine’s merger...
  • Ukraine amends the tax assessment appeal procedure
    Ukraine | February 2016 | On January 12th, 2016 amendments to the procedure according to which taxpayers appeal tax assessments came into force. The amendments were approved by the Order of the Ministry of Finance No. 916 dated October 21st, 2015 which was registered with the Ministry of Justice under No. 1617/28062 on December 23rd, 2015. The Order identifies the...
  • New Rules on Registration of business in Ukraine
    January 2016 The President of Ukraine Petro Poroshenko recently approved amendments to the Tax Code to simplify the business environment. This was announced at the official website of the Verkhovna Rada on May 8th, 2015. Law № 344-VIII was designed to reduce the number of procedures and time needed for business registration. The law changed the article 69 CLE -...
  • Proposed amendments to the Tax Code in Ukraine
    Ukraine/January 2016 On 30 November 2015, the Ministry of Finance published a draft Law which includes proposed amendments to the Tax Code. The draft Law was also submitted to the Parliament. The Bill №3688 was adopted by the members of Parliament; therefore the new tax rates have become applicable as of 1 January 2016. Among others, the following changes have...
  • The Protocol on amendments to the Double Tax Treaty between Cyprus and Ukraine signed
    Ukraine/December 2015 A Protocol amending the Cyprus-Ukraine Treaty for the Avoidance of Double Taxation has been signed on December 11, 2015 in Kiev. The agreed protocol is expected to come into effect not earlier than the January 1st 2019, which is when the existing Convention will expire. The existing Convention was signed on November 8th, 2012 and entered into force...
  • Updated legal incentives for investors in Ukraine
    Ukraine/December 2015 The investment climate in Ukraine is bound to undergo a wave of improvement as the Government is proceeding with the implementation of wide-ranging reforms. Amendments are mostly geared towards economic recovery and focus on increasing transparency in state-owned enterprises, removing regulations, reconstructing procurement processes, and simplifying the tax code with a target to create a welcoming business environment...
  • Ukraine amends list of low-tax jurisdictions for transfer pricing purposes
    Ukraine/November 2015 On 16 October 2015, the Cabinet of Ministers of Ukraine adopted Resolution No. 977-R, which amends the list of low-tax jurisdictions for transfer pricing purposes. As a reminder, the term “low tax jurisdiction” for transfer pricing purposes refers to a state or territory with a corporate tax rate at least 5 percentage points lower than Ukraine's general corporate...
  • Signs of Economic Recovery in Ukraine
    Ukraine/October 2015 Recent Ukrainian signs of economic stabilization evident in July and August 2015 prompted a discussion among economists about Ukraine’s ability to restore economic growth. Experts share the view that it is crucial to maintain the current balanced policy and structural and institutional reforms as Ukraine heads on the road to recovery. IMF’s First Deputy Managing Director David Lipton...
  • Tax rate revision of Passive Income between Ukraine and Cyprus
    Ukraine/July 2015 On 22nd of March 2013, the Cyprus government has ratified the new Double Tax Treaty between Cyprus and Ukraine, whereas the Ukrainian Parliament has proceeded with the ratification on 4th of July 2013. The new treaty was put into effect as from 19th of August 2013. On 2nd of July 2015, the Ukrainian Ministry of Finance together with...
  • Penalties for Violation of Labor Law: Ukrainian Novelties 2015
    Ukraine/February 2015 Starting from 1 January 2015 Ukrainian employers may face with significant sanctions for labor law violation. The Law of Ukraine # 77-VIII introduces a number of changes to the Labor Code of Ukraine including the introduction of new fines for labor law violation. Financial Fines Financial fines are the fines imposed on the company’s bank account. Moreover, these...
  • Ukrainian Law on Tax Compromise
    Ukraine/January 2015 The Law of Ukraine # 63-VIII “On Amendments to the Tax Code of Ukraine concerning the Features of Corrections to the Tax Liabilities of Corporate Income Tax and Value Added Tax in the Case of Application of the Tax Compromise” took force of 17 January 2015 (the respective law was adopted by the Supreme Council of Ukraine on...
  • New Law of Ukraine on Disclosure of Beneficiaries
    Ukraine/November 2014 On the 14th of October 2014 the Supreme Court of Ukraine passed the law "On Introducing Amendments to Certain Laws of Ukraine to Disclose Ultimate Beneficial Owners of Legal Entities and Public Officials". One of the main purposes of the respective law is the reduction of the corruption level in Ukraine by identifying individuals who are ultimate beneficial...
  • New requirements for obtaining Ukrainian visa
    Ukraine/October 2014 From now on citizens of Qatar, Kuwait and the UAE will be able to obtain visas to the Ukraine without a written invitation. The respective Resolution # 482 of 23 September 2014 of the Cabinet of Ministers of Ukraine came into force on 07 October 2014. According to the Resolution, citizens of the above mentioned countries will be...
  • Obligations of Ukrainian companies in view of military mobilization
    Ukraine/October 2014 Ukrainian companies are obligated to provide information about the employed individuals liable for military service and number of vehicles owned by the company to the State and local authorities. The respective information is required for military mobilization purposes and should be provided to the State or local authorities upon their written request. Moreover, once per year (no later...
  • Reduction of VAT rate in Ukraine on supplying Medical Products
    Ukraine/September 2014 Ukrainian government amended and approved a list of medical products which will be taxed at 7% VAT (Resolution № 410 of 03 September 2014) while importing and selling. To review the respective resolution reflecting the list of such medical products, please follow the link: http://www.kmu.gov.ua/kmu/control/uk/cardnpd All other medical products, not included in the list, are subject to the...
  • Introduction of Military Tax in Ukraine
    Ukraine/September 2014 Ukraine’s parliament has amended its tax law as to introduce a 1,5% military tax based on employees’ income as a means to improve the country’s Armed Forces. The said tax will be imposed temporarily and will be paid in addition to the personal income tax. State Authorities have already proceeded with the preparation of a draft report on...
  • Obligatory registration of farm livestock in Ukraine
    Ukraine/September 2014 The president of Ukraine Petro Poroshenko approved the law # 1648-VII on obligatory identification and registration of farm livestock in Unified State Register of animals. By the introduction of this law, Ukrainian legislation comes in line with EU legislation, establishing a system of continuous monitoring of the health concerning all animals and veterinary-sanitary conditions of households in Ukraine....
  • Ukrainian Draft Budget for 2015
    Ukraine/September 2014 According to the Draft Budget of Ukraine for 2015, the minimum living wage and minimum salary for able-bodied individuals is planned as follows: From 1 January 2015 – UAH 1,257 From 1 December 2015 – UAH 1,284 Please note that the above indicated numbers are only planned and could change when the final budget will came in force....
  • Ukrainian Presidential elections
    Ukraine/May 2014 Due to recent events, Ukraine has experienced dramatic change in its political landscape. The country had an interim President, a new pro-Western government, and was hoping that the election of a new president on 25 May 2014 will help in the country’s long road towards stabilization and even improve the economic situation whist the political mayhem is still...
  • Ukraine clarifies the effective date of the new treaty with Cyprus
    Ukraine/October 2013 The Convention between the Government of Ukraine and the Government of Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (the “DTT”) was eventually signed in Nicosia on 8 November 2012. On 22 March 2013, the Cypriot Parliament ratified the DTT the Ukrainian Parliament in its turn ratified...