L&M Finance Group

Changes in legislation in June for the period of martial law

On June 7, the National Commission for Securities and the Stock Market registered a new type of securities — credit notes — for the first time.

This type of security is registered by the regulator for the first time in response to the issuer's request.

A credit note is an emission derivative security that is associated with the occurrence of an event related to the solvency of a third party specified in the decision on the issuance of credit notes. The credit note obliges the issuer to pay interest income to the owner of such security in the amount and terms established by the decision on the issue of credit notes.

Redemption occurs by the issuer paying the owner of the nominal value of the credit note, provided that no event has occurred related to the solvency of the third party specified in the decision on the issue of credit notes.

In the event of the occurrence of an event related to the solvency of the third party specified in the decision on the issue, the owner of the credit note loses the right to receive interest income, and the issuer of the security is obliged to buy back the credit note at a price determined in accordance with the procedure provided for by the decision on emission

On June 10, the Verkhovna Rada adopted an important European integration law on the protection of consumer rights, which aims to bring national legislation closer to European Union standards.

The updated law will allow the implementation of EU directives and regulations in the field of consumer rights protection into Ukrainian legislation, and will also extend the law's effect to the field of food products in terms of consumer economic rights. In addition, it will define the rights and obligations of consumers in electronic commerce.

In order to improve the protection of consumer rights, the introduction of a single state web portal for consumers in the field of e-commerce is foreseen. Also, the law defines the list of information about products and the business entity that must be displayed when conducting electronic trade and establishes responsibility for the lack of such information. In addition, a business entity that provides services of an electronic trading platform (marketplace) for placing goods for sale by other business entities is also liable.

The State Consumer Service received the right to apply to the Internet service provider to restrict access to the websites (parts of the website, software) of business entities that use unfair business practices and violate consumer rights protection legislation.

In accordance with the entry into force of the new Law, the Law of Ukraine "On the Protection of Consumer Rights" dated May 12, 1991 No. 1023-XII will expire.

June 14 The National Commission for Securities and the Stock Market held a meeting within the framework of the regulation of virtual assets, which was attended by the management and specialists of the National Securities and Exchange Commission of Ukraine, international organizations, specialists of the National Bank of Ukraine, representatives of the deputies, specialized bodies, leading market specialists and other interested participants.

At the meeting, the Commission announced the beginning of the adaptation and legalization of virtual assets, starting with the development of projects to amend the Tax Code of Ukraine within the framework of regulating crypto activities and, in particular, the new edition of the Law on Virtual Assets with amendments to other legislative acts.

The Commission, together with specialized organizations and partners, started preparing the legal framework in the field of virtual assets for implementation in accordance with the recently adopted European MiCA Regulation (Markets inCrypto Assets), which provides for the regulation of virtual assets in the EU, protecting users and investors in this field.

The main goal of the implementation is to introduce in Ukraine, as one of the first countries, the market of crypto assets, which will be regulated by the newly adopted European regulation.

On June 29, a draft law on mandatory registration and use of electronic offices in the Unified Judicial System was adopted .

The law provides for the registration of participants in the legal process in an electronic cabinet, which allows courts to notify and summon participants in electronic form, which saves money and time.

The innovations provide that the obligation to register an electronic office in EUITS will be extended to all legal entities. If the person who is obliged to register an electronic cabinet has not fulfilled his duty, then his documents may be returned or remain without movement or be returned without being accepted for consideration by the court, depending on the type of procedural document.

The law also provides for the possibility for the Party to the case to send documents through EUITS to other participants in the case, if they have an electronic cabinet. For this purpose, lawyers, notaries, private executors, arbitration managers, court experts, state and local authorities and other legal entities must register their electronic offices in EUITS within 30 days from the date of publication of this law.

One of the main advantages of the innovations is the possibility to exchange procedural documents online. This will significantly simplify the procedure for consideration of the case and reduce the time of its consideration. In addition, it will save money on document circulation.

The new law of Ukraine is a step towards improving the judicial system and ensuring accessibility and speed in the consideration of cases. The implementation of the electronic system of registration and exchange of documents is an integral part of the modern world and will ensure more effective functioning of the judicial system of Ukraine. This law will enter into force from the date of its publication.

On June 30, the period of quarantine restrictions stipulated by the Resolution of the Cabinet of Ministers of Ukraine No. 1236 dated December 9, 2020 ends.

Pursuant to Resolution No. 651 dated 27.06.2023, the Cabinet of Ministers of Ukraine canceled the quarantine throughout the territory of Ukraine, which was established to prevent the spread of the acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus on the territory of Ukraine.

As of August 1 , the adopted draft law cancels the benefit for single taxpayers, the partial moratorium on checks for excise goods and the return of responsibility for violation of the application of the PRO.

1. Therefore, starting from the month of August, the preferential 2% of the single tax will be abolished. Accordingly, after the cancellation, 2% EU payers will be able to submit an application for refusal to apply this rate and indicate another one to which they wish to switch. In case of failure to submit such an application or if the payer did not indicate the desired rate, he will automatically be transferred to the rate at which he was before choosing 2% EP. For newly created business entities that have chosen 2% EP from the day of state registration, automatic transfer to the EP system of the third group with a rate of 5% is provided.

It is assumed that payers who in 2023 switched from 2% EP to the general system have the right to re-switch to the simplified system of their choice by submitting an application. At the same time, if the application is submitted before September 1, 2023, such a payer will be considered an EP payer from August 1, 2023.

2. The draft law also provides for the automatic restoration of the rights and obligations of the VAT payer for those subjects whose registration as a VAT payer has been suspended.

3. As of August 1, the current moratorium on checks for excise goods (alcohol, tobacco, fuel), gambling business and financial services will be partially lifted.

4. From October 1, responsibility for violations in the field of application of the Criminal Code returns. However, exemption from financial responsibility is provided for violations of the PRO (except during trade in excise goods), if they were committed in the front-line territories (including the territories of possible hostilities).

5. The bill also provides for "technical debt" incurred from April 1, 2022 to July 31, 2023 in the electronic cabinet. This debt will not be taken into account when determining the possibility of the payer to continue staying on the simplified system.

6. For the frontline territories (including the territories of possible hostilities), the right to voluntary payment of EP and ESV will be preserved.

7. In addition, FOP-payers of the EU without VAT will be given the opportunity to indicate the names of goods (services) in a simplified form in settlement documents.

8. There is a provision in which the transfer of goods by legal entities for the defense forces does not require an approved list of the CMU.

Since June , the Diia application has launched a new service for individual entrepreneurs.

The Ministry of Digital Transformation announced that from now on in Diya, the service for the automatic closure of Enterpreneur has started.

In order to close the Enterpreneur, you must first log in to the Diia portal - Choose the desired service - the Automatic closing of the Enterpreneur service. After choosing the desired service, you need to click on " Submit an application " and sign this application with your electronic signature. The necessary information will be automatically pulled from the Unified Register and sent to the updated register and to the tax authority at the place of registration of your activity.