Nearly half of the EBA member companies expect to hold out financially for a few months

18/ 03/ 2022

According to the EBA survey, 43% of its member companies have enough financial resources for a few months, 28% – for six months, 17% – for a year or more. And only 6% report that the companys financial resources have been exhausted. Similarly, 46% of CEOs we surveyed, plan to seek support from the state. At the same time, 29% do not have a final decision on that yet, and 23% do not plan to receive state aid. Thus, most company executives, namely 65%, will offer employees to apply for 6,500 hryvnias within e-Support Programme (єПідтримка). Half of the companies, namely 50%, plan to take advantage of the deferral of tax payments and the exemption from paying single social contributions for employees who are defending the country in the ranks of the Armed Forces or territorial defense. We would like to draw attention to the fact that the survey did not include the new business support initiatives proposed by draft law №7137-which was recently adopted by the Verkhovna Rada. How else can the state support business? We at the EBA see an urgent need to revive business activities. Therefore, our companies ask for abolishing the list of critical imports as a significant barrier to the fulfillment of obligations to suppliers and buyers, facilitating imports and exports, ensuring logistical support, and simplification of customs procedures. It is extremely important to restore VAT refunds for exporters. Also, companies need to resume settlements with foreign counterparties to replenish their working capital and raw materials for production. Besides, it is vital to support the salary fund for employees of both working and non-working companies. Tax benefits for businesses on the deferral of reporting and payment of taxes with the banking control over the payment of personal income tax and SSC need to be agreed upon. The issue of reservation of critically important specialists from military mobilization is difficult but it should still be resolved. We also asked the companies if they plan to apply for the state evacuation programme from the combat zone. Out of 120 responses, only 13 companies answer that they plan on evacuation and 4 of them have already applied for it. Meanwhile, 50% do not plan to participate because they believe that their company cannot be transported, another 11% have already evacuated the company on their own. And 21% of respondents do not have facilities in the combat zone. Business continues to support the state and the army in this difficult time. Thus, 67% of the surveyed companies provide humanitarian aid (with finances, medicines, protective equipment, etc). 66% of the EBA member companies continue to pay taxes in full, and 14% pay taxes in advance. Moreover, businesses help the Armed Forces, pay salaries to employees, provide assets of the company for the use of the Armed Forces, or get involved in other ways. Every week on the EBA website, we highlight the new stories of how business helps the country, so stay tuned! For reference: 120 CEOs and representatives of the EBA member companies took part in the survey which was conducted from March 11 to 17, 2022.

According to the EBA survey, 43% of its member companies have enough financial resources for a few months, 28% – for six months, 17% – for a year or more. And only 6% report that the company’s financial resources have been exhausted.

Similarly, 46% of CEOs we surveyed, plan to seek support from the state. At the same time, 29% do not have a final decision on that yet, and 23% do not plan to receive state aid.

Thus, most company executives, namely 65%, will offer employees to apply for 6,500 hryvnias within e-Support Programme (єПідтримка). Half of the companies, namely 50%, plan to take advantage of the deferral of tax payments and the exemption from paying single social contributions for employees who are defending the country in the ranks of the Armed Forces or territorial defense.

We would like to draw attention to the fact that the survey did not include the new business support initiatives proposed by draft law №7137-which was recently adopted by the Verkhovna Rada.

How else can the state support business? We at the EBA see an urgent need to revive business activities. Therefore, our companies ask for abolishing the list of critical imports as a significant barrier to the fulfillment of obligations to suppliers and buyers, facilitating imports and exports, ensuring logistical support, and simplification of customs procedures. It is extremely important to restore VAT refunds for exporters. Also, companies need to resume settlements with foreign counterparties to replenish their working capital and raw materials for production.

Besides, it is vital to support the salary fund for employees of both working and non-working companies. Tax benefits for businesses on the deferral of reporting and payment of taxes with the banking control over the payment of personal income tax and SSC need to be agreed upon. The issue of “reservation” of critically important specialists from military mobilization is difficult but it should still be resolved.

We also asked the companies if they plan to apply for the state evacuation programme from the combat zone. Out of 120 responses, only 13 companies answer that they plan on evacuation and 4 of them have already applied for it. Meanwhile, 50% do not plan to participate because they believe that their company cannot be transported, another 11% have already evacuated the company on their own. And 21% of respondents do not have facilities in the combat zone.

Business continues to support the state and the army in this difficult time. Thus, 67% of the surveyed companies provide humanitarian aid (with finances, medicines, protective equipment, etc). 66% of the EBA member companies continue to pay taxes in full, and 14% pay taxes in advance. Moreover, businesses help the Armed Forces, pay salaries to employees, provide assets of the company for the use of the Armed Forces, or get involved in other ways. Every week on the EBA website, we highlight the new stories of how business helps the country, so stay tuned!

For reference:

120 CEOs and representatives of the EBA member companies took part in the survey which was conducted from March 11 to 17, 2022.