Tax & Legal Alerts

Accounting for Shares in LLCs/ALCs in the Depository System

Legal Alert

We continue a series of reviews in respect of major new developments of the Law of Ukraine “On Joint Stock Companies”. This time, we offer to go in more details regarding the issue of accounting for shares in LLCs/ALCs in the accounting system of shares.

The Law on Joint Stock Companies

Legal Alert

July 2022 brought an important event in the area of corporate law, in particular, the new Law of Ukraine “On Joint Stock Companies” was adopted, which stipulated for new possibilities for JSCs and LLCs.

Updated Requirements to Financial Monitoring and Disclosure of Ultimate Beneficial Owners (“UBOs”)

Legal Alert

We continue following updates in the area of financial monitoring and would like to draw your attention to several recently adopted regulations.

CbC reports required following signing of CbC MCAA

Tax & Legal Alert

On 3 November 2022, Ukraine joined the OECD Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA). In 2020, Ukraine enacted a law adopting the three-tier transfer pricing reporting requirements, which are aligned with recommendations under action 13 of the OECD/G20 BEPS project. Under these requirements, in addition to a local file, certain Ukrainian companies now may be required to prepare a master file and a country-by-country (CbC) report. For the master file, 2021 was the first reporting period. However, CbC reports were not required until Ukraine joined the CbC MCAA. Now that Ukraine has joined the CbC MCAA, CbC reports are required in Ukraine and the Ukrainian tax authorities may gain access to CbC reports filed in other countries.

Deadline approaching to settle WHT liabilities for transfer pricing adjustments

Tax & Legal Alert

In Ukraine, the first deadline to settle withholding tax liabilities associated with transfer pricing adjustments is 30 September 2022. As from 1 January 2021, transfer pricing adjustments (and certain other payments to nonresidents related to a company’s capital) are treated as dividend-equivalent payments subject to a 15% withholding tax. However, the withholding tax may be reduced (even eliminated) under a double tax treaty to which Ukraine is party.

Changes in the list of services permitted for importation

Tax & Legal Alert

The import of all commercial products has been actually allowed effective 09 July 2022. However, restrictions still apply to the payment for a number of services, work, intellectual property rights, and other non-property rights specified in the Annex to the Resolution of the Cabinet of Ministers of Ukraine dated 24 February 2022, No. 153 (hereinafter, the "List of Services").
The latest changes in the List of Services became effective on 23 July 2022.

Major Changes Introduced by the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Optimization of Labor Relations” No. 2352-ІХ

Tax & Legal Alert

On 19 July 2022, the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Optimization of Labor Relations" (hereinafter, the “Law”) entered into force. The Law continues the implementation of a series of updates related to the working conditions during martial law and, also, makes changes that are indirectly determined by the situation in Ukraine and will remain in force after the end of the war. Please find a brief analysis of the main amendments below.

Currency restrictions on payments for imported goods eased

Tax & Legal Alert

With the outset of hostilities, the National Bank of Ukraine imposed restrictions on the purchase of foreign currency and cross-border transfers of currency values. However, it was allowed to pay for the goods included in the list of critical imports, approved by the Resolution No. 153 of the Cabinet of Ministers of Ukraine dated 24 February 2022.

Being responsive to the needs of business, the NBU and the CMU continue to gradually reduce the currency restrictions introduced in the early war period.

Changes to the regulatory documents of the NBU and the CMU, in particular, those regarding the currency regulation of payments for the imported goods, took effect on 9 July 2022.

Transfer pricing control during martial law

Tax & Legal Alert

On 02 June 2022, the State Tax Service of Ukraine published a notification that unveils special considerations that would apply to transfer pricing in the context of martial law, in particular, the submission of transfer pricing report package, suspension of the statute of limitations, special aspects of TP tax audits, etc.

Below you may find a summary of key points of the notification as well as the comments of Deloitte experts on some issues that require a detailed clarification.

Tax obligations and penalties reimposed for certain taxpayers during martial law

Tax Alert

Law No. 2260-IX “On amending the TCU and other legislation of Ukraine regarding special aspects of tax administration of taxes, duties and Unified Social Security Contribution during the state of martial law and the state of emergency,” published on 27 May 2022 significantly changes the administration of taxes and duties during the state of martial law in Ukraine. In March 2022, certain rules were implemented to apply while martial law remains in force. Law No. 2260-IX reinstates certain tax obligations and penalties that previously were suspended.

Major Changes Introduced by the Law of Ukraine “On Organization of Labor Relations under Martial Law” No.2136-ІХ

Tax & Legal Alert

After the outbreak of the war and the imposition of the martial law, labor relations in Ukraine have considerably changed. To address employment relations in the new conditions, the Verkhovna Rada of Ukraine adopted a Law of Ukraine “On Organization of Labor Relations under Martial Law” No.2136-ІХ (hereinafter – the Law ), and the State Labor Service of Ukraine continues to issue recommendations and comments in respect of the legislation’s application. By this alert, we would like to share with you the insights on key changes in the labor legislation and provide short comments regarding the practical application of its certain regulations.

Temporary tax, currency, and labor provisions introduced

Tax & Legal Alert

This article provides a summary of key tax, currency control, and labor regulations introduced in Ukraine in March 2022 in response to the ongoing conflict with Russia.

Taxpayers are released from financial liability for violation of tax legislation during martial law

Tax & Legal Alert

In the face of military aggression of the Russian Federation against Ukraine and declaration of martial law in Ukraine, the State Tax Service of Ukraine (hereinafter, “STSU”) informed as follows.

Launch of the procedure for acceptance of applications for Diia.City resident status

Tax & Legal Alert

On 08 February 2022, during the 4th Diia Summit, representatives of the Ministry of Digital Transformation of Ukraine announced the launch of a special tax and legal regime: Diia.City.

A special web-portal for non-residents supplying electronic services in Ukraine is set up

Tax Alert

The State Tax Service of Ukraine (hereinafter, the “STSU”) has launched a special web-portal for non-residents supplying electronic services to Ukrainian individuals. The portal will allow non-residents to register as VAT payers in Ukraine, to file and submit VAT returns, to pay VAT liabilities to a special treasury account of the State budget of Ukraine, to communicate with the STSU representatives, to receive tax payment notifications, etc.