Ukraine

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Return to homepage  |  Last updated: 11 May, 2020

18 March 2020 President of Ukraine Volodymyr Zelensky has signed the law "On Amending Certain Legislative Acts of Ukraine aimed at Preventing the Occurrence and Spread of Coronavirus Disease (COVID-19)“

24 March 2020 President of Ukraine Volodymyr Zelensky, at a meeting with newly appointed Ambassador of the People's Republic of China to Ukraine Fan Xianrong, asked the Chinese government to provide Ukraine with additional assistance to combat the spread of COVID-19 coronavirus: test systems, medical equipment and medicines are needed.

25 March 2020 quarantine is extended till 24 April 2020 and the extraordinary case was announced

28 March 2020: Ukraine closes the boarders and bans all the cross-boarder transport communications

• A set of legal norms aimed at protecting the rights of individuals and legal entities during quarantine and restrictive measures related to the spread of coronavirus disease (COVID-19), namely: the possibility of working at home for employees, (including government employees) and providing vacation by agreement; granting the right to owners to change the operating modes of bodies, institutions, enterprises, organizations, in particular, receiving and servicing individuals and legal entities with mandatory informing the population about this through websites and other communication tools; a ban on the cancellation of a certificate of registration of an internally displaced person (for the quarantine period and 30 days after its cancellation); attribution of the legal fact of quarantine introduction to force majeure circumstances; extension of terms for receiving and providing administrative and other services.
• The law includes an instruction to the government to establish additional weekly wage supplements to medical and other workers directly involved in the elimination of coronavirus infection (COVID-19) in the amount of up to 200% of wages for the period of implementation of measures to prevent the occurrence and spread of the disease, until the completion of these activities, as well as additional payments to certain categories of workers, providing the main areas of life;
• From 1 April 2020, the government will be ready to pay additional UAH 1,000 ($35) to those having a pension of less than UAH 5,000 ($180), from 1 May 2020, pensions will be indexed.
• On 30 March 2019 government of Ukraine approved law which introduce the concept of a remote work and compensation to the employees who lost their work due to the coronavirus infection
• Deadline for the preparation of personal tax returns was extended till July, 1 2020.

• The law forbids the banks from charging any penalties, fines, increased interest rates on consumer loans
• Implementation of the law on mandatory installation of cash registers for businesses is postponed for three months till January 1, 2021
• Until June 30, 2020, it is prohibited to carry out state supervision (control) on the economic activity (except for the supervision of high-risk entities, in the area of compliance with the requirements of establishment of state regulated prices and sanitary issues) and epidemic well-being).
• Limits for single tax payers raised.

Duty relief

• Temporary exemption from import VAT and customs duties for medicines, medical products  and/ or medical equipment necessary for the performance of measures aimed at preventing  the appearance and spread, localization and elimination of coronavirus diseases (COVID-19),  which are defined by the Government of Ukraine (Resolution of the Cabinet of Ministers of  Ukraine No.224 as of March 20th, 2020). Effective from March 20th, 2020, and until last day of  month in which COVID-19 quarantine is canceled.

Customs formalities

• Customs clearance of such goods is the priority and performed first of all; the submission of a  preliminary or temporary declaration for distribution of such goods pursuant to the rules  established by the Customs Code of Ukraine is permitted; the payment for the performance of  customs formalities outside the customs authorities location or outside the working hours  established is not required for these goods.
• Customs clearance of other goods is performed uninterrupted in normal way.

Customs audits

• Suspension of customs audits until June 30th, 2020. With the exception of unscheduled  inspections, the basis of which is harm to life, health of citizens, checks which result in the  issuance of permits, licenses, etc.

Export

• Temporary restrictions on the export of goods under the Ukrainian tariff code lines, from  March 11th, 2020 and and until last day of month in which COVID-19 quarantine is canceled:  3926 20 00 00, 4818 50 00 00, 4818 90 10 00, 4818 90 90 00, 6210 10 92 00, 6210 10   98  00; 6307 90 98 00; 9004 90 10 00, 9004 90 90 00; 9020 00 00  00.

Border crossing

• Temporary closure of all border crossing points for passenger's entrance intro Ukraine (from  March 28th, 2020)
• Temporary closure of the specific border crossing points (Resolution of the Cabinet of  Ministers of Ukraine No.288-r as of March 13th, 2020, from March 13th,  2020)

• The changes also affect the Criminal Code of Ukraine. It is supposed to introduce administrative responsibility for the unauthorized abandonment of the place of observation or quarantine by a person who may be infected with a coronavirus, as well as increasing criminal liability for violation of sanitary rules and norms for the prevention of infectious diseases. Establishment of administrative responsibility for non-disclosure of information on public procurements carried out under this law.
• Article 325 of the Criminal Code of Ukraine is interpreted in such a way that a penalty of 1,000 to 3,000 tax-free minimum incomes of citizens will be imposed for violation of the rules and norms established with the aim of preventing epidemic and infectious diseases, as well as mass non-communicable diseases, arrest for a period of six months, restriction or imprisonment for three years, if such actions led or could lead to the spread of the disease. COVID-19 coronavirus will be added to the list of such diseases.
• Exemption from liability for late filing and disclosure of financial statements (including consolidated and audited reports) if such report is filed and made public within the quarantine or 90 calendar days from the day following the end of such quarantine, but no later than 31 December 2020

Tax & Legal: Yuriy Katser – ykatser@kpmg.ua
Restructuring: Yuriy Fedoriv – yfedoriv@kpmg.ua