L&M Finance Group


In continuation of the sore topic of quarantine and its dire economic consequences for Ukrainian business, we are trying to analyze all significant events in this area.
More recently, on March 30, the Verkhovna Rada adopted the Law "On Amending Certain Legislative Acts aimed at Providing Additional Social and Economic Guarantees in Connection with the Spread of Coronavirus Disease (COVID-2019)."
The law provides for the improvement of legal relations in many areas of life, which have undergone changes in connection with the spread of the coronavirus COVID-19.
The relevant changes were made to the Tax, Customs, Civil Codes, the Code of Laws of Ukraine on Labor, the Code of Ukraine on Administrative Offenses, the laws of Ukraine "On Employment", "On Banks and Banking", "On Education", "On State Regulation of Production and turnover of ethyl alcohol, cognac and fruit alcohol, alcoholic beverages, tobacco products and fuel "and some other legislative acts.
We tried to highlight the main changes, among which are:
  • expansion of benefits in terms of VAT taxation, corporate income tax and duty on the supply of goods necessary for the implementation of measures aimed at combating COVID-19;
  • simplification of the procedure for the supply and use of alcohol for the production of antiseptics and excise tax benefits for such operations;
  • A number of changes and clarifications have been made regarding the benefits of land payments. First of all, the term of the benefit has been reduced - it will be applied only in March (Law No. 533 provided for the effect of the benefit for the period from March 1 to April 30, 2020);
  • the law provides for the introduction of new limits for taxpayers who are on a simplified taxation system: the first group - the amount of income during the calendar year should not exceed 1 million UAH .; the second group - no more than 5 million UAH; the third group - no more than 7 million UAH. It is additionally provided that local governments in 2020 will have the right to decide on a reduction in single tax rates;
  • the deadlines for conducting certain tax reporting inspections for March - May 2020 were extended from 30 to 60 days, and the moratorium on conducting ERU inspections was extended;
  • it is stipulated that for the period until May 31, the deadlines for the period of administrative appeal procedures by taxpayers, the provision of individual tax advice in writing and other terms in the tax sphere are stopped;
  • a number of changes were made to the administrative procedural legislation, which, inter alia, stipulate: extension of the procedural deadlines for the duration of the quarantine and the right of the participants in the case during the quarantine to participate in the court session by video conference outside the courthouse using their own technical means;
  • the procedure for applying flexible working hours and remote (home-based) work has been regulated. At the same time, it was determined that in remote (home-based) work, employees distribute working time at their discretion, they are not subject to the internal labor regulations, unless otherwise provided in the employment contract. At the same time, the total length of working time may not exceed statutory norms;
  • an interesting and controversial provision appeared in terms of rent: from the moment of quarantine establishment, and until its completion in the manner prescribed by law, the tenant can be exempted from payment for the use of property if it could not be used by him due to circumstances for which he is not responsible . The word "may" introduces the confusion, the application of which is still unclear.
In the meantime, we wish you good health and will keep you informed of important legal information related to quarantine.