The Cabinet of Ministers of Ukraine has changed the conditions of entry into Ukraine. From now on, foreigners must have a negative PCR test for COVID-19, made in no more than 72 hours, to cross the border.
In order to prevent the spread of acute respiratory disease COVID-19 caused by the coronavirus SARS-CoV-2 on the territory of Ukraine, the Cabinet of Ministers Resolution of March 22, 2021 No. 230 amended Resolution No. 1236 of December 9, 2020.
In particular, according to the changes, in order to enter Ukraine, the foreigners, in addition to the compulsory insurance policy, as defined earlier, must have a negative test result for COVID-19. It must be made by the polymerase chain reaction method, which is carried out no more than 72 hours before crossing the state border.
In the absence of a policy (certificate) of insurance or a negative test result on COVID-19, employees of the State Tax Service of Ukraine (hereinafter – STSU) will deny foreigners and stateless persons to cross the state border.
It should be noted that the resolution clearly defines the category of persons who are exceptions.
In addition, changes were made to the crossing of entry points to the temporarily occupied territories in Donetsk and Luhansk regions, the Autonomous Republic of Crimea and the city of Sevastopol and the departure of foreigners and stateless persons from them. In particular, it is determined that the insurance policy (certificate) is not required for foreigners, stateless persons permanently residing in Ukraine, employees of representative offices of official international missions, organizations accredited in Ukraine.
The norm for the Ministry of Health to compile a list of states with a significant spread of COVID-19, which affected the self-isolation of individuals, is also excluded.
It is currently determined that, among others, citizens of Ukraine who cross the state border are subject to self-isolation, except for some categories, including those who have a negative result of testing for COVID-19 by PCR, which was conducted in no more than 48 hours to crossing the state border.
Changes have been made to the entry through the checkpoints of entry and exit of persons arriving from the temporarily occupied territories in Donetsk and Luhansk regions, the Autonomous Republic of Crimea and the city of Sevastopol. In particular, citizens of Ukraine wishing to be vaccinated against COVID-19 in the territory where public authorities exercise their powers in full will be allowed without self-isolation, provided that an invitation to vaccination with a unique identifier is presented.
Citizens of Ukraine who are subject to self-isolation in connection with crossing the state border, and persons who are subject to self-isolation in connection with crossing checkpoints of entry into the temporarily occupied territories in Donetsk and Luhansk regions, Crimea and Sevastopol and departure of them, are obliged to install and activate the mobile application of the “At home” (“Vdoma”) system. If it is impossible to install a mobile application, they are subject to observation.
In addition, the amendments empower the officials of the State Border Guard Service to check the installation of a mobile application by citizens.
The President of Ukraine has signed the Law of Ukraine “On Amendments to item 4 of Chapter XXI “Final and Transitional Provisions” of the Customs Code of Ukraine on exemption from import duty of new equipment (components) and components imported for the implementation of an investment project with significant investments to implement a special investment agreement” No. 1294-IX, approved by Parliament on March 2, 2021.
According to this document, until January 1, 2035, equipment and hardware imported to Ukraine for the implementation of investment projects in accordance with the Law “On State Support of Investment Projects with Significant Investments” are temporarily exempt from import duties.
These tax benefits are provided given that the imported goods are manufactured not earlier than three years before the date of their importation into Ukraine, have not been used, and do not originate from the occupying or aggressor state or from the occupied territory of Ukraine.
It is assumed that the list and volume of imports of such goods are approved by the Cabinet of Ministers of Ukraine together with the conclusion of a special investment agreement.
The Head of State also signed the Law of Ukraine “On Amendments to the Tax Code of Ukraine on the Peculiarities of Taxation of Business Entities Implementing Investment Projects with Significant Investments in Ukraine” No. 1293-IX, which was also adopted by the Verkhovna Rada on March 2.
According to this law, until January 1, 2035, operations on import of equipment (hardware), components to Ukraine, imported for the implementation of an investment project with significant investments, are temporarily exempt from value added tax (hereinafter – VAT).
Investors who are parties to a special investment agreement concluded in accordance with the Law of Ukraine “On State Support of Investment Projects with Significant Investments” are also exempt from corporate income tax, provided that this profit is received as a result of such an agreement.
Exemption from income tax is provided after the commissioning of the investment project within five years within the term of the special investment agreement. A prerequisite for the application of the tax exemption is the fulfillment by an investor with significant investments of its obligations under a special investment agreement.
In addition, the law allows local governments until January 1, 2035 to reduce land tax rates and rents for state and communal land or exempt from paying land tax for land used in the implementation of investment projects with significant investments.
The total amount of funds exempt from taxation is taken into account in the total amount of state support for an investment project with significant investments provided by a special investment agreement.
The implementation of these laws will help attract strategic investors to Ukraine, increase the country's investment attractiveness, and increase the competitiveness of the Ukrainian economy through the introduction of state support for large investment projects, in particular by providing tax incentives.
The Ministry of Finance of Ukraine, as part of the implementation of the provisions of step 13 of the Plan to Combat the Base Erosion and Profit Shifting (BEPS Action Plan), has introduced a three-tier transfer pricing reporting structure that includes transfer pricing documentation (Local file), global transfer pricing (Master file) and Country-by-Country Report.
Transfer pricing documentation (Local File) is a set of documents or a single document compiled in any form, which must contain information in accordance with the requirements of paragraphs 39.4.6 of the Tax Code of Ukraine (hereinafter – the Tax Code).
Global transfer pricing documentation (Master File) is a set of documents or a single document, drawn up in any form, which must contain information in accordance with the requirements of paragraph 39.4.7 of the Tax Code.
Country-by-Country Report is a report submitted by taxpayers if the total consolidated income of the international group of companies, which includes the taxpayer, for the financial year preceding the reporting year, calculated in accordance with accounting standards applied by the parent company of the international group (and in the absence of information – in accordance with international accounting standards), exceeds the equivalent of 750 million euros and in the presence of one of the circumstances specified in paragraph 39.4.10 of the Tax Code.
Country-by-Country Report of the international group of companies contains information on each jurisdiction in which the member of the international group of companies is registered or in which the international group of companies carries out the activity according to requirements of paragraph 39.4.11 of the Tax Code.
In addition, the Ministry of Finance approved the form and procedure for filing a notice of participation in an international group of companies, the form and procedure for filing a notice of a forward, futures or commodity contract, and updated the form and procedure for reporting controlled transactions.
The introduction of this reporting structure will provide comprehensive information on the activities of international groups of companies in relation to specific jurisdictions, as well as an effective analysis of the scope, structure of transactions and specifics of international groups of companies for transfer pricing control.
The Ministry of Finance reminds of the norms of Art. 39 of the Tax Code regarding:
- submission by taxpayers of Country-by-Country Reports of an international group of companies – applied for the first time for the financial year ending in 2021, but not earlier than the year in which the competent authorities concluded a Мultilateral Сompetent Authority Agreement on the Exchange of Country-by-Country Reports);
- request of regulatory authorities to taxpayers to submit global transfer pricing documentation (master file) – applied for the first time for the financial year ending in 2021;
- submission by taxpayers of a notice of participation in an international group of companies – applied for the first time in 2021 for 2020.
