Ukraine: New Tax Amendments & Covid-19 Restrictions

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Despite the third wave of COVID-19 and strict quarantine restrictions, April in Ukraine was very rich in news, bill proposals and law amendments. The President of Ukraine, Volodymyr Zelensky, approved important laws about security, courts, and Russian sanctions. Moreover, amendments in Tax Legislation, card fees policy and interests are to be introduced. 

• New Tax Legislation - Dija City. The Draft Law introduces a new approach in taxation of the IT industry: attractive rates, income deductions and a lot more. On April 14^th, the Draft Law was forwarded to the parliament for voting.  

• Ukraine implements sanctions against 81 companies and 26 citizens of Russia for 3 years. The list includes newspapers & magazines, intelligence, government officials and businesses. 
• Government plans to allow the restructuration of consumer loans. Special rules will apply for a mortgage and consumer loans in foreign currencies. It will give a substantial right to the borrower to save the property and pay minimum mortgage repayments. 
• Due to the ongoing Russian aggression, Zelensky signed a law that allows reservists to be called up for military service without mobilization during a special period. 
• The Cabinet of Ministers supported the draft law amending the Customs Code to the EU standards. Officials claim it as an important step towards the Association Agreement between Ukraine and the EU. 
• The Parliament passed a bill on payment services fee. According to the memorandum, the rate will be reduced to 0.9% as of 2023  whereas currently, the retail transactions rate is in the range of 1.5-2%. 

• COVID-19 restrictions: The adaptive quarantine has been extended till June 30-th. Cities with a high level of COVID cases will be under lockdown. Alongside, the fines for violation of the self-isolation regime will increase from 3400 to 8500 UAH. 

For further information on how you or your business can prepare for the new standards or to discuss your potential actions, please contact our Kyiv Tax and Legal Department at  kyiv@eurofast.eu 

Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South-East Europe & Middle East (SEEME). The Organisation is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in South-East Europe & the Middle East. 

27/4/21