Additional legislative measures to decrease the impact of coronavirus on the economy of Ukraine | News Flash

On 02.04.2020 the Law of Ukraine No. 540-IX «On Amendments to Certain Legislative Acts of Ukraine aimed at Providing Additional Social and Economic Guarantees in Connection with Spread of Coronavirus Disease (COVID-19) » entered into force. The Law amends in particular tax and labor legislation to help businesses to overcome negative economic effects of quarantine.

Among many other the following measures were adopted:

• increasing of limits of annual income for payers of Unified Tax (including private entrepreneurs): I group – from UAH 300,000 to UAH 1,000,000; II group – from UAH 1,500,000 to UAH 5,000,000; III group – from UAH 5,000,000 to UAH 7,000,000
• the moratorium on documentary and factual inspections was extended until June 30th, 2020
• the moratorium on inspection of payment of single social contribution prolonged until May 31st, 2020
• prolongation of the period of temporary suspension of fines and penalties from April 30th, 2020 to May 31st, 2020 for the late payment or non-payment of single social contribution, and late submission of reporting on social contribution
• the Code of Labor Laws of Ukraine was supplemented with the concepts of “flexible working hours” and “remote (home) work”; these forms of work organization may be imposed in the order of the employer during time of the spread of an epidemic, pandemic or at the time of threat of military, technogenic or other nature
• during the quarantine, litigants can participate in court proceedings via videoconferencing session using their own technical devices, availability of an electronic digital signature is not mandatory
• during the quarantine, the banks are not allowed to increase interest rates specified in loan agreements
• the persons responsible for the submission and disclosure of financial statements of the entity according to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” are exempt from liability for violations of submission of financial statements for the year 2019 if financial statements will be submitted during quarantine or during 90 days following the end of quarantine, but not later December 31, 2020
• for joint stock companies it is allowed to postpone annual general meetings of shareholders due to quarantine and should be conducted during three months following the end of quarantine or alternatively can be conducted remotely considering requirements of to the order and organization of remote meetings according to the legislation

Important: On 22.04.2020 the Cabinet of Ministers of Ukraine adopted the Decree No 291, which extended duration of the quarantine until May 11, 2020.