The Cabinet of Ministers of Ukraine has improved the Procedure for the importation into the customs territory of Ukraine and the targeted use of new machinery (equipment) and accessories for it, which are imported by investors for their own use during the implementation of an investment project with significant investments. The relevant decision was adopted at the Government meeting on January 3, 2024.
The government resolution makes changes regarding:
- clarification of the deadlines for submission of the list and volumes of goods imported by both the applicant and the investor with significant investments;
- conformity of the list and volumes of goods imported submitted by the applicant to the provisions of the draft special investment agreement, the terms of which have been agreed upon in accordance with the legislation;
- expansion of grounds for refusal to approve the list and volumes of goods when reviewing it upon written request of an investor with significant investments.
We remind you that entrepreneurs who implement projects with significant investments have the right to receive several types of support from the state, which make up to 30% of the amount of the investment project. In particular:
- preferential right to use land plots of state or communal ownership;
- budgetary financing of construction of engineering and transport infrastructure (roads, connection to engineering networks);
- tax benefits;
- exemption from compensation for forestry production losses;
- duty-free import of necessary equipment.
The Ministry of Finance of Ukraine adjusts the Methodological Recommendations for filling out the Balance Sheet. On the website of the Ministry of Finance of Ukraine, the draft order “On Amendments to the Methodological Recommendations for Completing Financial Reporting Forms” has appeared.
The draft order was prepared with the aim of bringing the Methodological Recommendations for filling out financial reporting forms, approved by Order of the Ministry of Finance of Ukraine No. 433 of March 28, 2013, into compliance with national accounting provisions (standards).
Thus, the changes will clarify that the article “Long-term financial investments” reflects financial investments for a period of more than one year, as well as all investments that cannot be freely realized at any time. This article highlights financial investments that, in accordance with the relevant national accounting regulations (standards), are accounted for by the equity method. This article also highlights (shown separately) debt for contributions to the authorized capital of business entities, by which the amount of other financial investments is reduced.
The National Bank of Ukraine has established requirements for the solvency of insurers, the formation of technical reserves, the accounting of insurance contracts and the protection of information. The specified requirements correspond to the norms of the Law of Ukraine "On Insurance", which are based on the principles of Directive 2009/138/EU (Solvency II) and IFRS 17 "Insurance Contracts".
- The regulation on establishing requirements for ensuring the solvency and investment activity of the insurer (approved by resolution of the NBU Board No. 201 of December 29) defines the procedure for calculating regulatory capital and its components that are acceptable for meeting the requirements for solvency capital and minimum capital, as well as requirements for acceptable assets of the insurer, in particular to cover technical reserves.
- The regulation on the procedure for the formation of technical reserves by insurers (approved by resolution of the NBU Board No. 203 of December 29) establishes requirements for the quality of data used by the insurer to calculate technical reserves, rules for aggregating contracts, the list and methods of forming technical reserves, the insurer's verification of the adequacy of the formed technical reserves and adequacy of loss reserves.
- The regulation on the procedure for accounting by the insurer of contracts related to the implementation of insurance activities and requirements for the protection of information of the insurer (approved by resolution of the NBU Board No. 204 of December 29) defines the uniform requirements for keeping records of insurance contracts (reinsurance) and other insurance operations in electronic form in information systems, as well as approaches to the protection of information in such systems.
In particular, the requirements for accounting for technical reserves under concluded contracts and maintaining a register of assets to cover technical reserves have been established.
New requirements for solvency, contract accounting and information protection of insurers enter into force on January 1, 2024. At the same time, a transition period is provided for insurers to bring their activities into compliance with these requirements until June 30, 2024.
Until January 1, 2027, insurers will calculate solvency capital according to the simplified approach, taking into account the indicators of insurance premiums, insurance payments, technical reserves, etc., and certain categories (life insurers and non-life insurers with significant volumes of activity) – the minimum capital according to the simplified approach .
The Cabinet of Ministers of Ukraine, by Resolution No. 1402 of December 27, 2023, approved the list of goods whose export and import are subject to licensing and quotas for 2024.
The document, in particular, approves the following for 2024:
- volumes of goods quotas, the export of which is subject to licensing (Appendix 1 to the Resolution);
- list of controlled substances (ozone-depleting substances and fluorinated greenhouse gases), the export and import of which are subject to licensing (Appendix 2);
- list of goods and equipment that may contain controlled substances (ozone-depleting substances and fluorinated greenhouse gases), the export and import of which is subject to licensing, except for goods and equipment transported in containers with personal belongings (Appendix 3);
- list of goods (agricultural products), the export of which is subject to licensing (Appendix 4).
In addition, it was established that:
- licenses for the export (import) of goods not used in 2023 by subjects of foreign economic activity, specified in Resolution of the CMU "On approval of the lists of goods, the export and import of which are subject to licensing, and quotas for 2023" No. 1466 of December 27, 2022, valid until March 1, 2024, unless otherwise stipulated by the relevant international treaties of Ukraine;
- in accordance with Article 16 of Law of Ukraine "On Foreign Economic Activity" No. 959-XII of April 16, 1991 for customs clearance of goods that are loaded in bulk and the export (import) of which is licensed, the marginal difference in the actual value of their value, quantity or weight cannot exceed 5% of the value specified in the relevant license.
The Cabinet of Ministers of Ukraine has adopted Resolution "On Amendments to the Procedures Approved by Resolution of the Cabinet of Ministers of Ukraine No. 28 of January 24, 2020", which regulates the provision of financial state support to business entities within the framework of the State Program "Affordable Loans 5-7-9%".
Thus, the procedures for the implementation of the "Affordable loans 5-7-9%", "Affordable financial leasing 5-7-9%" and "Affordable factoring" programs have been improved. First of all, restrictions on receiving state support have been removed for the following entrepreneurs:
- who have re-registered on the controlled territory of Ukraine, but are unable to relocate their business, but timely fulfill their obligations under credit agreements and pay taxes, fees and mandatory payments to the state budget of Ukraine;
- who are registered, in particular, in the territories of Kherson (including the city of Kherson), Mykolaiv and Dnipropetrovsk regions, for which the date of the end of hostilities and temporary occupation has already been determined, but the date has not yet been entered into the List of territories of active hostilities, in which state electronic information resources are based.
In addition, in order to fulfill the agreements with the IMF, it is planned to focus the 5-7-9% Program exclusively on micro, small and medium-sized enterprises.
The National Bank of Ukraine by Resolution No. 190 of December 27, 2023 "On Approval of Amendments to the Rules for Compilation and Submission of Reports by Participants of Non-Bank Financial Services Market to the National Bank of Ukraine" amended the Rules for Compilation and Submission of Reports by Market Participants of Non-Bank Financial Services to the National Bank (hereinafter – Rules No. 123).
The introduction of changes is related to the need to bring Rules No. 123 into compliance with changes in the legislation of Ukraine. They standardize the processes of drawing up and submitting reports by participants of non-banking financial services market for high-quality prudential supervision of their activities, monitoring of compliance with mandatory regulations and risk assessment of their activities.
Amendments to Rules No. 123:
- the reporting of insurers, credit unions, financial companies, and pawnshops has been updated almost completely (except for some files);
- the list of reporting providers was supplemented by collection companies with the requirement to submit three reporting files;
- the list of explanatory notes and additional reports, which were submitted by sending to the e-mail of the National Bank, has been significantly shortened. Currently, the explanatory note (in the new version) will be submitted only by insurers;
- determine that only pawn shops and finance companies will submit files FR0 "Financial statement data", FR1 "Consolidated financial statement data" and notes to financial, consolidated financial statements.
It also provides for non-application of measures of influence to reporting providers for late submission of files with reporting indicators, electronic documents and/or errors made during reporting for the 1st quarter of 2024, provided that files with reporting indicators, electronic documents are submitted to the National Bank in full volumes until July 25, 2024. Requirements for non-application of impact measures do not apply to files FR0, FR1, OS1, OS2, OS3 and notes to financial, consolidated financial statements.
