Verkhovna Rada adopted another set of anti-crisis draft laws

19/ 05/ 2020

Last week, the Verkhovna Rada took a step towards the adoption of another set of anti-crisis draft laws to combat the consequences of COVID-19. Thus, the draft law No.3329-d was adopted in the second reading on additional support for taxpayers during the effectivity period of measures against COVID-19. This document extends the validity of some benefits introduced previously, namely the abolition of penalties for violations of tax legislation (until the last day of the month of the end of quarantine, and not until May 31 as previously planned). Besides, the extension of the moratorium on documentary and factual inspections (until the last day of the month of the end of quarantine), the extension of the single social security tax benefit for entrepreneurs of the simplified taxation system until May 31. At the same time, the extension of the maturity date of promissory notes for aviation fuel on the ninetieth calendar day from the date of adoption of the CMU resolution on the resumption of international air transportation in Ukraine, etc. Also, the extension of the Law of Ukraine on simplification of procedures for reorganization and capitalization of banks (from August 1, 2020, to 2024) and reducing the requirement for a minimum authorized capital of banks from UAH 500 million up to UAH 200 million due to todays economic realities. The next draft law No.2166, adopted in the second reading, implies amendments to the law on the collection and accounting of the single social security tax. Thus, the document improves the legislation on the accrual and payment of the single social security tax to three categories of individuals. First are individuals engaged in independent professional activity (lawyers, notaries, etc.). From now on, these categories pay the single social security tax only as sole proprietors, in contrast to the previous tax procedure, under which the single social security taxes were paid twice (as sole proprietors and as individuals engaged in independent professional activity). Secondly, the accrual of single social security taxes and penalties for non-payment is canceled for self-employed persons and sole proprietors if it was declared that they did not receive income during this period. Third, the accrual of single social security taxes is canceled for people of retirement age who conduct independent professional activities in the field of science, literature, culture, and medicine In addition, draft law No.3297 on amendments to the Commercial Code of Ukraine (to prevent the imposition of penalties on loans during the quarantine period) was adopted in the first reading. Thus, the document provides for amendments to the Commercial Code of Ukraine, according to which in case the borrower (individual or legal entity) delays with fulfilling his credit commitments during the quarantine period and / or within 30 days after its completion, the borrower is released from the obligation to pay penalties, fines or penalties for such delay. The European Business Association thanks the Verkhovna Rada for its decisions. At the same time, business urges lawmakers to pay attention to several important initiatives, the adoption of which will help businesses get back on their feet faster in this situation. These include reducing the burden on the wage fund, extending the land tax and real estate tax benefits until the end of the year, and so on. At the same time, it is important to extend business support measures for the period after quarantine.

Last week, the Verkhovna Rada took a step towards the adoption of another set of anti-crisis draft laws to combat the consequences of COVID-19.

Thus, the draft law No.3329-d was adopted in the second reading on additional support for taxpayers during the effectivity period of measures against COVID-19. This document extends the validity of some benefits introduced previously, namely the abolition of penalties for violations of tax legislation (until the last day of the month of the end of quarantine, and not until May 31 as previously planned). Besides, the extension of the moratorium on documentary and factual inspections (until the last day of the month of the end of quarantine), the extension of the single social security tax benefit for entrepreneurs of the simplified taxation system until May 31. At the same time, the extension of the maturity date of promissory notes for aviation fuel on the ninetieth calendar day from the date of adoption of the CMU resolution on the resumption of international air transportation in Ukraine, etc. Also, the extension of the Law of Ukraine on simplification of procedures for reorganization and capitalization of banks (from August 1, 2020, to 2024) and reducing the requirement for a minimum authorized capital of banks from UAH 500 million up to UAH 200 million due to today’s economic realities.

The next draft law No.2166, adopted in the second reading, implies amendments to the law on the collection and accounting of the single social security tax. Thus, the document improves the legislation on the accrual and payment of the single social security tax to three categories of individuals. First are individuals engaged in independent professional activity (lawyers, notaries, etc.). From now on, these categories pay the single social security tax only as sole proprietors, in contrast to the previous tax procedure, under which the single social security taxes were paid twice (as sole proprietors and as individuals engaged in independent professional activity). Secondly, the accrual of single social security taxes and penalties for non-payment is canceled for self-employed persons and sole proprietors if it was declared that they did not receive income during this period. Third, the accrual of single social security taxes is canceled for people of retirement age who conduct independent professional activities in the field of science, literature, culture, and medicine

In addition, draft law No.3297 on amendments to the Commercial Code of Ukraine (to prevent the imposition of penalties on loans during the quarantine period) was adopted in the first reading. Thus, the document provides for amendments to the Commercial Code of Ukraine, according to which in case the borrower (individual or legal entity) delays with fulfilling his credit commitments during the quarantine period and / or within 30 days after its completion, the borrower is released from the obligation to pay penalties, fines or penalties for such delay.

The European Business Association thanks the Verkhovna Rada for its decisions.

At the same time, business urges lawmakers to pay attention to several important initiatives, the adoption of which will help businesses get back on their feet faster in this situation. These include reducing the burden on the wage fund, extending the land tax and real estate tax benefits until the end of the year, and so on. At the same time, it is important to extend business support measures for the period after quarantine.