The Parliament adopted another anti-crisis law
On March 30, the Verkhovna Rada approved the next anti-crisis law No. 3275 (aimed at providing additional social and economic guarantees due to the spread of coronavirus disease (COVID-2019).
Thus, there are 5 important decisions for the business community, proposed by the European Business Association.
First, all procedural terms appealing against decisions of the controlling authorities, both administratively and judicially, are suspended.
Secondly, the application of penalties for late payment of bills for aviation fuel is delayed.
Third, it is prohibited to raise interest rates on credit agreements.
Fourth, the deadline for submission of financial statements has been postponed.
Fifthly, local governments have the right to make amendments in 2020 to reduce local tax rates and/or fees and single tax rates.
At the same time, some of the solutions offered by the business have not been taken into account.
Surely, on behalf of the business, we thank the Verkhovna Rada for their attention to the proposals of the business community and the decisions they have taken. However, unfortunately, some norms are still being ignored. And in this context, operational work is extremely important. After all, with each day it becomes more difficult for the business to work. So I do hope that we will be able to find consensus for the remaining proposals because more decisions are needed to tackle the crisis.
The most important concern for the companies at the present moment is the maintenance of penalties for violating the terms for declaration and payment of taxes (VAT, excise tax, rent). In addition, the business community has repeatedly emphasized the cancellation of penalties for violating the rules of accounting, production, storage, and transportation of fuel and ethyl spirit.
The following issues were also not considered:
– a moratorium on all inspections and tax information requests by tax authorities at least till the end of the quarantine period. Currently, unscheduled inspections are still actually in force;
– enforcing the court decision on registration of tax invoices;
– timely refunding of VAT;
– reducing the tax burden on wages which will refrain the employer from staffing cut, and, as a consequence, reduce social tension;
– abolishing the deposit income tax for both individuals and legal entities;
– introducing temporary disability benefits for workers paid from the Social Security Fund from the first day of sickness;
– exempting insurance payments implied by the voluntary medical insurance agreements for workers from personal income tax and military levies;
– a transparent mechanism for regulating the prices on medicines, medical supplies and socially significant goods (the regulation is provided by law but there is currently no mechanism for such regulation).
At the same time, the business finds it unfair to reduce the preferential exemption period for land and real estate taxes (reduced from 30 April to 31 March).
Therefore, the European Business Association calls on the Verkhovna Rada to draw attention to a detailed list of proposals for the next draft law aimed at supporting the business.