13 decisions the Government can take to support the business during coronavirus crisis

16/ 03/ 2020

The number of those infected by the coronavirus disease COVID-19 worldwide has exceeded 169,000 people as of the evening of March 15. Already in more than 150 countries, a virus has been detected, including Ukraine. These figures can be found on gisanddata.maps.arcgis.com, where Johns Hopkins Universitys Center for Systems Science and Engineering publishes the real-time statistics. Last week, the CMU introduced restrictive measures all over Ukraine for the period from March 12 till April 3. The coronavirus situation obviously affects the economic activity of the business. Thus, to minimize the impact, some countries are already launching business support programs. For example, Denmark will provide deferral to VAT payers, the UK plans to introduce tax cuts and small business loans, in France, businesses will be able to get tax deferrals and payments to social funds, etc. Therefore, the European Business Association proposes the Government, the President of Ukraine and the Verkhovna Rada to implement necessary measures, which are vital for this difficult time, in order to hold up with dignity. Those measures are as follows: Ensuring cooperation with the IMF Introducing the priority of customs clearance for freight vehicles carrying medical and sanitary goods, to minimize interruptions in the supply of these extremely important commodities. It is also critically important to keep food and fuel imports unrestricted and to prevent restrictions on freight traffic at the crossing points. Keeping grocery stores and shops selling essential goods (hygiene products and household goods) in large shopping and entertainment malls opened, and in case of restriction of catering establishments - allowing the restaurant business of Ukraine to provide delivery. Ensuring timely and transparent administration of taxes, especially regarding the registration of VAT invoices and excise tax. At the same time, it is important to extend deadlines for filing against decisions of the State Tax Service of Ukraine complaints within the framework of administrative appeal. Abolishing penalties for late registration of tax invoices, late filing of tax returns and late payment of taxes by at least June 1, 2020. Introducing a moratorium on all audits by tax authorities and other controlling bodies for all categories of taxpayers with a moratorium validity period of at least by June 1, 2020. Introducing a moratorium with a validity period minimum by June 1, 2020, for tax authorities to request tax information from taxpayers and extend the deadline for submitting information on requests for the same period. Suspending for the period of moratorium all procedural terms appealing against decisions of the controlling authorities, both administratively and judicially. Considering the possibility to reduce the tax burden on wages, which will refrain the employer from staffing cut and, as a consequence, to reduce social tension. Abolishing the deposit income tax for both physical and legal entities. Delaying the deadline for filing the income statement for individuals by July 1, 2020. Recommending the NBU not to apply additional restrictions on foreign exchange operations. Providing administrative services by state authorities digitally and ceasing the provision of administrative services that require a personal visit of citizens, the submission of documents, etc., until the end of the quarantine period. For its part, businesses also do their best to organize the operations effectively and support their employees and partners. So, hopefully, through joint actions and prompt responses, we will be able to withstand this situation with minimal losses.

Last week, the CMU introduced restrictive measures all over Ukraine for the period from March 12 till April 3.

The coronavirus situation obviously affects the economic activity of the business.

Thus, to minimize the impact, some countries are already launching business support programs. For example, Denmark will provide deferral to VAT payers, the UK plans to introduce tax cuts and small business loans, in France, businesses will be able to get tax deferrals and payments to social funds, etc.

Therefore, the European Business Association proposes the Government, the President of Ukraine and the Verkhovna Rada to implement necessary measures, which are vital for this difficult time, in order to hold up with dignity. Those measures are as follows:

Ensuring cooperation with the IMF
Introducing the priority of customs clearance for freight vehicles carrying medical and sanitary goods, to minimize interruptions in the supply of these extremely important commodities. It is also critically important to keep food and fuel imports unrestricted and to prevent restrictions on freight traffic at the crossing points.
Keeping grocery stores and shops selling essential goods (hygiene products and household goods) in large shopping and entertainment malls opened, and in case of restriction of catering establishments – allowing the restaurant business of Ukraine to provide delivery.
Ensuring timely and transparent administration of taxes, especially regarding the registration of VAT invoices and excise tax. At the same time, it is important to extend deadlines for filing against decisions of the State Tax Service of Ukraine complaints within the framework of administrative appeal.
Abolishing penalties for late registration of tax invoices, late filing of tax returns and late payment of taxes by at least June 1, 2020.
Introducing a moratorium on all audits by tax authorities and other controlling bodies for all categories of taxpayers with a moratorium validity period of at least by June 1, 2020.
Introducing a moratorium with a validity period minimum by June 1, 2020, for tax authorities to request tax information from taxpayers and extend the deadline for submitting information on requests for the same period.
Suspending for the period of moratorium all procedural terms appealing against decisions of the controlling authorities, both administratively and judicially.
Considering the possibility to reduce the tax burden on wages, which will refrain the employer from staffing cut and, as a consequence, to reduce social tension.
Abolishing the deposit income tax for both physical and legal entities.
Delaying the deadline for filing the income statement for individuals by July 1, 2020.
Recommending the NBU not to apply additional restrictions on foreign exchange operations.
Providing administrative services by state authorities digitally and ceasing the provision of administrative services that require a personal visit of citizens, the submission of documents, etc., until the end of the quarantine period.

For its part, businesses also do their best to organize the operations effectively and support their employees and partners. So, hopefully, through joint actions and prompt responses, we will be able to withstand this situation with minimal losses.