OCTOBER CHANGES IN LEGISLATAION
On October 15, the Verkhovna Rada supported the updated proposals of the President of Ukraine regarding the draft law No. 3898-ХХ on the extension of registration of shares until 2028
This draft law was proposed for the purpose of protecting the rights of the owners of land plots and introducing changes in the regulation of land relations during the war, due to the impossibility of land plot owners registering their plots within the specified time limits.
The bill proposes:
·extension of the deadline for registration of unclaimed land plots until January 1, 2028;
·restoration of the obligation to upgrade the qualifications of certified land surveyors;
·continuation of the implementation of the pilot project on entering information into the State Land Cadastre until 2026 by certified land surveyors.
At the moment, the bill is with the President for signature. In the case of a positive decision, returned with a signature, the draft law will enter into force the day after its publication.
On October 10, the Verkhovna Rada adopted in the second reading draft law No. 11416-d on the peculiarities of taxation during the period of martial law.
The bill envisages:
·An increase in the military tax rate for individuals from 1.5% to 5%, except for military personnel, for whom 1.5% remains.
·Establishment of military levy for FOP - uniformed members of the first, second and fourth groups in the amount of 10% of the minimum salary on the 1st of the current month.
·Establishing a military levy in the amount of 1% for taxpayers of the single tax of the third group.
·An increase in the amount of the minimum tax liability for land, at least UAH 700/ha, for land with arable land share of 50% or more - UAH 1,400/ha.
·An increase in the income tax rate for financial companies to 25%, for banks to 50%.
·Monthly income tax and personal income tax advance payments for fuel retail.
·Monthly reporting from personal income tax, tax and social security.
·Penalizing taxpayers for unintentional non-payment of taxes (FOP 1, 2, 4 - fine in the amount of 50% of the single tax rate ; FOP 3 - for non-payment of less than 30 days 5% of the amount of unpaid military duty, for non-payment of more than 30 days - 10% of the amount unpaid military duty.
·Penalty of taxpayers for willful non-payment of taxes (first violation: a fine of 25% of the amount of the unpaid military levy, repeated delay in payment for more than 90 days : a fine of 50% of the amount of the debt.
Currently, the draft law has not been adopted and is being signed by the President. According to the transitional provisions, the draft law will enter into force on the day following its publication, except for certain norms that will come into force on January 1, 2025.
On October 4, the Cabinet of Ministers of Ukraine entered into force Resolution No. 1132 , which improves the procedure of commission trade in vehicles.
Therefore, in order to conclude a contract of sale, it is necessary to submit a document confirming the value of the car. At the same time, the value, which must not be lower than that specified in the estimate, will be included in the sales contract, and income tax will be paid from the actual value of the car.
A person who sells a car, motorcycle or moped must submit an application to the trade organization on the sale of vehicles in the current year to determine the need to pay tax in accordance with Article 173 of the Tax Code. The sale of the first passenger car, moped or motorcycle during the year is not taxed; others require tax depending on the category and number of sales.
Trade organizations will not accept cars without documents for taxation, in particular assessments. Owners will also be checked in the State Register of Sanctions and the Search Database to avoid the legalization of transport by sanctioned persons. Regulation of the commission trade of cars should contribute to the filling of the state budget.
We remind you that when selling two passenger cars per year, the tax rate is 5% for the second car, and 18% for the third and subsequent cars. Trucks also have tax rates: 5% for the first and 18% for the second and subsequent ones.
On October 1, the Cabinet of Ministers of Ukraine adopted Resolution No. 1131 on the recognition of foreign electronic trust services.
This resolution was adopted to replace the experimental project adopted by Resolution No. 1311 on mutual recognition of electronic trust services between Ukraine and the European Union, which expired on October 3. This is an important step towards simplifying the use of electronic signatures in relations with non-residents.
Among the main changes included in the resolution:
·use of the Trust List for mutual recognition of electronic trust services between Ukraine and the European Union.
·introduction of an additional file to the Trust List with information on qualified providers and their services, which ensures recognition of electronic trust services in Ukraine.
The additional file allows you to check the electronic trust services recognized between Ukraine and the EU and contains data on the certificates of the List of EU Trust Lists, in particular on:
·generation of qualified electronic signature certificates;
·formation of qualified electronic seal certificates;
·formation of a qualified electronic time stamp;
·verification of qualified electronic signatures;
·verification of qualified electronic seals;
·storage of qualified electronic signatures;
·storage of qualified electronic seals;
·qualified electronic trust service of registered electronic delivery;
·generation of a qualified website authentication certificate;
·verifying a qualified website authentication certificate.
This resolution entered into force on October 3.
On October 4 , the Presidential Decree on the extension of the transport agreement between Ukraine and the European Union entered into force .
Back in June, the EU and Ukraine agreed to extend the agreement on freight transportation by road until June 30, 2025, with the possibility of an automatic extension for another six months.
In addition to the extension, the terms of the agreement were also updated, including:
·a requirement for transport operators to have documents confirming permission for international transport.
·the requirement for the availability of documents for non-cargo operations related to transit or bilateral operations.
·strengthening control over compliance with obligations under the agreement related to the fight against fraud and traffic safety violations.
·the introduction of preventive provisions for the suspension of the agreement in certain regions in the presence of significant violations in such regions.
We will remind you that the main agreement was signed on June 29, 2022, which contributes to the simplification of transit through EU countries and the development of relations with the EU market.
On October 18, the Cabinet of Ministers of Ukraine approved the list of goods exempt from VAT and import duty.
Back in July, the government of Ukraine adopted laws on exemption from taxation on the import of energy equipment and other goods for the restoration of energy infrastructure.
According to the approved list, the following goods can be identified among those exempted from taxes: oil and oil products, hydraulic turbines, various pumps, engines and generators, power generators, transformers, batteries, electrical equipment, electrical equipment, vehicles, in particular trucks and self-propelled machinery, tools and other goods needed to restore the energy infrastructure.
On October 18, the Cabinet of Ministers of Ukraine adopted Order No. 1015-r on the approval of the Strategy for the introduction of sustainable development reporting by enterprises.
According to the text, the Strategy defines the purpose, goals and objectives for the formation and disclosure by Ukrainian enterprises of information on sustainable development according to the uniform methodological principles of the EU, which is one of the stages for obtaining the status of a candidate for EU membership.
ESRS ( European sustainability reporting standards ) are standards for reporting on sustainable development in the EU, covering environmental, social and management aspects - ESG ( Environmental , Social , Governance ), such as climate change, biodiversity and human rights. They provide clear information about sustainable development and are part of the CSRD directive ( Corporate sustainability reporting directive ) on corporate reporting on sustainable development. It requires companies to disclose a large amount of detailed information about the results of activities in the field of sustainable development and the corresponding strategic consequences.
The following are the main goals of the Strategy:
·introduction of sustainable development reporting based on European standards (ESRS) ;
·audit of reporting and quality control of audit services.
According to the operational plan for the implementation of the Strategy for 2024-2026 , I will contribute to:
·compliance of Ukrainian legislation with EU requirements.
·providing reliable information for evaluating environmental and social aspects of enterprise activity;
·creation of equal conditions for Ukrainian enterprises on international capital markets.
·attraction of investments in enterprises reporting on sustainable development.
On October 29, the Verkhovna Rada of Ukraine submitted two draft laws on extending the terms of general mobilization and martial law in Ukraine.
According to the draft laws No. 12151 and No. 12152 propose to extend general mobilization and martial law in the country from November 10, 2024 for 90 days.
On October 15, the Verkhovna Rada supported the updated proposals of the President of Ukraine regarding the draft law No. 3898-ХХ on the extension of registration of shares until 2028
This draft law was proposed for the purpose of protecting the rights of the owners of land plots and introducing changes in the regulation of land relations during the war, due to the impossibility of land plot owners registering their plots within the specified time limits.
The bill proposes:
·extension of the deadline for registration of unclaimed land plots until January 1, 2028;
·restoration of the obligation to upgrade the qualifications of certified land surveyors;
·continuation of the implementation of the pilot project on entering information into the State Land Cadastre until 2026 by certified land surveyors.
At the moment, the bill is with the President for signature. In the case of a positive decision, returned with a signature, the draft law will enter into force the day after its publication.
On October 10, the Verkhovna Rada adopted in the second reading draft law No. 11416-d on the peculiarities of taxation during the period of martial law.
The bill envisages:
·An increase in the military tax rate for individuals from 1.5% to 5%, except for military personnel, for whom 1.5% remains.
·Establishment of military levy for FOP - uniformed members of the first, second and fourth groups in the amount of 10% of the minimum salary on the 1st of the current month.
·Establishing a military levy in the amount of 1% for taxpayers of the single tax of the third group.
·An increase in the amount of the minimum tax liability for land, at least UAH 700/ha, for land with arable land share of 50% or more - UAH 1,400/ha.
·An increase in the income tax rate for financial companies to 25%, for banks to 50%.
·Monthly income tax and personal income tax advance payments for fuel retail.
·Monthly reporting from personal income tax, tax and social security.
·Penalizing taxpayers for unintentional non-payment of taxes (FOP 1, 2, 4 - fine in the amount of 50% of the single tax rate ; FOP 3 - for non-payment of less than 30 days 5% of the amount of unpaid military duty, for non-payment of more than 30 days - 10% of the amount unpaid military duty.
·Penalty of taxpayers for willful non-payment of taxes (first violation: a fine of 25% of the amount of the unpaid military levy, repeated delay in payment for more than 90 days : a fine of 50% of the amount of the debt.
Currently, the draft law has not been adopted and is being signed by the President. According to the transitional provisions, the draft law will enter into force on the day following its publication, except for certain norms that will come into force on January 1, 2025.
On October 4, the Cabinet of Ministers of Ukraine entered into force Resolution No. 1132 , which improves the procedure of commission trade in vehicles.
Therefore, in order to conclude a contract of sale, it is necessary to submit a document confirming the value of the car. At the same time, the value, which must not be lower than that specified in the estimate, will be included in the sales contract, and income tax will be paid from the actual value of the car.
A person who sells a car, motorcycle or moped must submit an application to the trade organization on the sale of vehicles in the current year to determine the need to pay tax in accordance with Article 173 of the Tax Code. The sale of the first passenger car, moped or motorcycle during the year is not taxed; others require tax depending on the category and number of sales.
Trade organizations will not accept cars without documents for taxation, in particular assessments. Owners will also be checked in the State Register of Sanctions and the Search Database to avoid the legalization of transport by sanctioned persons. Regulation of the commission trade of cars should contribute to the filling of the state budget.
We remind you that when selling two passenger cars per year, the tax rate is 5% for the second car, and 18% for the third and subsequent cars. Trucks also have tax rates: 5% for the first and 18% for the second and subsequent ones.
On October 1, the Cabinet of Ministers of Ukraine adopted Resolution No. 1131 on the recognition of foreign electronic trust services.
This resolution was adopted to replace the experimental project adopted by Resolution No. 1311 on mutual recognition of electronic trust services between Ukraine and the European Union, which expired on October 3. This is an important step towards simplifying the use of electronic signatures in relations with non-residents.
Among the main changes included in the resolution:
·use of the Trust List for mutual recognition of electronic trust services between Ukraine and the European Union.
·introduction of an additional file to the Trust List with information on qualified providers and their services, which ensures recognition of electronic trust services in Ukraine.
The additional file allows you to check the electronic trust services recognized between Ukraine and the EU and contains data on the certificates of the List of EU Trust Lists, in particular on:
·generation of qualified electronic signature certificates;
·formation of qualified electronic seal certificates;
·formation of a qualified electronic time stamp;
·verification of qualified electronic signatures;
·verification of qualified electronic seals;
·storage of qualified electronic signatures;
·storage of qualified electronic seals;
·qualified electronic trust service of registered electronic delivery;
·generation of a qualified website authentication certificate;
·verifying a qualified website authentication certificate.
This resolution entered into force on October 3.
On October 4 , the Presidential Decree on the extension of the transport agreement between Ukraine and the European Union entered into force .
Back in June, the EU and Ukraine agreed to extend the agreement on freight transportation by road until June 30, 2025, with the possibility of an automatic extension for another six months.
In addition to the extension, the terms of the agreement were also updated, including:
·a requirement for transport operators to have documents confirming permission for international transport.
·the requirement for the availability of documents for non-cargo operations related to transit or bilateral operations.
·strengthening control over compliance with obligations under the agreement related to the fight against fraud and traffic safety violations.
·the introduction of preventive provisions for the suspension of the agreement in certain regions in the presence of significant violations in such regions.
We will remind you that the main agreement was signed on June 29, 2022, which contributes to the simplification of transit through EU countries and the development of relations with the EU market.
On October 18, the Cabinet of Ministers of Ukraine approved the list of goods exempt from VAT and import duty.
Back in July, the government of Ukraine adopted laws on exemption from taxation on the import of energy equipment and other goods for the restoration of energy infrastructure.
According to the approved list, the following goods can be identified among those exempted from taxes: oil and oil products, hydraulic turbines, various pumps, engines and generators, power generators, transformers, batteries, electrical equipment, electrical equipment, vehicles, in particular trucks and self-propelled machinery, tools and other goods needed to restore the energy infrastructure.
On October 18, the Cabinet of Ministers of Ukraine adopted Order No. 1015-r on the approval of the Strategy for the introduction of sustainable development reporting by enterprises.
According to the text, the Strategy defines the purpose, goals and objectives for the formation and disclosure by Ukrainian enterprises of information on sustainable development according to the uniform methodological principles of the EU, which is one of the stages for obtaining the status of a candidate for EU membership.
ESRS ( European sustainability reporting standards ) are standards for reporting on sustainable development in the EU, covering environmental, social and management aspects - ESG ( Environmental , Social , Governance ), such as climate change, biodiversity and human rights. They provide clear information about sustainable development and are part of the CSRD directive ( Corporate sustainability reporting directive ) on corporate reporting on sustainable development. It requires companies to disclose a large amount of detailed information about the results of activities in the field of sustainable development and the corresponding strategic consequences.
The following are the main goals of the Strategy:
·introduction of sustainable development reporting based on European standards (ESRS) ;
·audit of reporting and quality control of audit services.
According to the operational plan for the implementation of the Strategy for 2024-2026 , I will contribute to:
·compliance of Ukrainian legislation with EU requirements.
·providing reliable information for evaluating environmental and social aspects of enterprise activity;
·creation of equal conditions for Ukrainian enterprises on international capital markets.
·attraction of investments in enterprises reporting on sustainable development.
On October 29, the Verkhovna Rada of Ukraine submitted two draft laws on extending the terms of general mobilization and martial law in Ukraine.
According to the draft laws No. 12151 and No. 12152 propose to extend general mobilization and martial law in the country from November 10, 2024 for 90 days.
