The Cabinet of Ministers of Ukraine strengthens quarantine restrictions. Thus, throughout Ukraine, from April 6, 2020 until the end of quarantine, the following will be prohibited:
- stay in public places without a mask, respirator;
- movement of more than two persons in a group (except in cases of emergency and accompanying children);
- stay in public places of persons under 14 years without parental support;
- visits to parks, squares, recreation areas, forests and coastal areas (except for pets walking by one person and in case of emergency);
- visits of sports and playgrounds;
- visits of palliative care, social protection, social care institutions and entities;
- stay on the streets without ID cards, etc.
The regulation also lays down rules for self-isolation and observation. The observance of self-isolation regime is monitored by police, military servicemen, National Guard, employees of state institutions of the Ministry of Health, etc.
The Cabinet of Ministers of Ukraine amended its resolution until March 29, 2020, No. 241 “On Prevention of the Spread of Acute Respiratory Disease COVID-19 caused by Coronavirus SARS-CoV-2 in Ukraine”.
Among other things, the new version lists the activities that have been prohibited for the period of quarantine.
Thus, until April 24, 2020, the work of business entities, which provides for the reception of visitors, including catering establishments (restaurants, cafes, etc.), shopping and entertainment centers, other entertainment establishments, fitness centers, cultural establishments, commercial and household services is prohibited, except for:
- trade in food, fuel, parts and accessories for vehicles and agricultural machinery, hygiene products, medicines and medical supplies, technical and other means of rehabilitation, veterinary preparations, feeds, pesticides and agrochemicals, raw materials and seeds and planting material, daily poultry, communications and telecommunications, including mobile phones, smartphones, tablets, laptops and other goods that reproduce and transmit information in specialty shops, which must have direct contracts with telecom operators, provided that personnel and visitors have personal protective equipment (including face and eye protection for staff), in particular respirators or protective masks, including self-made, with no more than one visitor per 10 square meters in premises of retail space, and that appropriate sanitary and anti-epidemic measures are observed;
- financial services, financial institutions, and collecting and transporting currency values, as well as medical practices, manufacturing technical and other means of rehabilitation, veterinary practice, filling complexes, selling, leasing, technical maintenance and repair of vehicles, periodic tests of vehicles for road safety, certification of vehicles, their parts and equipment, maintenance of payment transactions recorders, activities on connection of consumers to the Internet, refill of accounts of mobile communication, payment for utilities and access to the Internet, repair of office and computer equipment, tools, supplies, household goods and personal consumption items, postal service providers, qualified electronic trust providers provided that personnel and visitors have personal protective equipment(including face and eye protection for staff), in particular respirators or protective masks, including self-made, with no more than one visitor per 10 square meters in premises of retail space, and that appropriate sanitary and anti-epidemic measures are observed;
- trade and catering activities with targeted delivery of orders, provided that personnel and visitors have personal protective equipment (including face and eye protection for staff), in particular respirators or protective masks, including self-made, with no more than one visitor per 10 square meters in premises of retail space, and that appropriate sanitary and anti-epidemic measures are observed;
- activities of accommodation establishments in which health workers and persons under observation reside, as well as other persons in accordance with the decision of the State.
The President of Ukraine has signed Law of Ukraine “On amendments to certain legislative acts of Ukraine aimed at providing additional social and economic guarantees in connection with the spread of coronavirus disease (COVID-19)” No. 540-IX, which has already entered into force.
Let’s consider the main innovations.
Single tax payer limits
Limits have increased for both individuals and legal entities:
Group 1 – 1 million UAH instead of 0.3;
Group 2 – 5 million UAH instead of 1.5;
Group 3 – 7 million UAH instead of 5.
Land tax and land lease
The previous “anti-crisis” law exempted from land tax and rent for state and communal land in March and April.
The new law retains the March privilege but forces to pay it for April. However, the April payment was delayed a little – it has to be paid by June 30.
Real estate tax
It is known that during the quarantine, non-residential real estate was exempt from tax for two months - March and April.
Now this privilege is limited – only March. You will have to pay for April. Moreover, due to a misunderstanding, the payment for April was not postponed but approached. It should now be submitted by June 30, 2020, not July 30.
Is it possible not to pay rent
It is possible, but this does not apply to all cases. The rent is not paid only if the property cannot be used for its intended purpose due to quarantine restrictions.
How to pay for idle period
Now idle period forced by quarantine is paid not on average earnings, but not below two-thirds of the tariff rate (Article 113 of the Labor Code).
Flexible mode and remote work
The Labor Code introduced rules on flexible working hours, as well as rules on remote working.
In the case of remote (home) work, a written employment contract (Article 24 of the Labor Code) will be mandatory. This rule does not apply to a worker who only occasionally works at home (Article 1 of the Convention on home work). In the current situation, a written contract s not necessary, and the employee can be transferred to remote work by order (Article 60 of the Labor Code).
Disclosure of statements and audit
The financial statements for 2019 should be disclosed together with the auditor’s opinion.
- enterprises of public interest, incl. large;
- PJSC;
- nationwide natural monopolists;
- “extractors”;
- medium enterprises;
- micro and small financial institutions.
The deadline for disclosure for different businesses varies: by April 30, June 1 (Part 3 of Article 14 of the Law on Accounting). However, the administrative penalty for the violation is equally large: from 17,000 to 34,000 UAH.
The statutory audit was not abolished but the fine was lifted. However, the financial statements together with the auditor's opinion must be made public within 90 days after the quarantine is over, and for the issuers of securities within 5 working days after the general meeting.
Medical benefit with VAT
Not only the importation, but also the supply of anti-virus goods according to the CMU list were exempted from VAT (paragraph 71 of the Transitional Provisions of the Tax Code). Last time, they forgot about domestic supply.
If purchased with VAT and sold at a discount, then the tax credit is saved.
The benefit is in force from March 17 and is valid until the end of the month of quarantine (i.e. until the end of April).
Charity
There are such tax exemptions.
1. For individuals, the entire amount of antivirus charity is covered by the PIT tax deduction (sub-item 1, item 11 of the Transitional Provisions of the Tax Code).
2. For high-income legal entities, the entire amount of antivirus charity transferred is included in the cost without tax adjustments (item 511, sub-paragraph 4 of the Transitional Provisions of the Tax Code). The low-income entities did not have such adjustments before.
3. For healthcare institutions, the amounts or value of goods obtained for tax purposes shall be excluded from income.
4. For non-governmental organizations and charitable organizations, VAT exemptions for medicines and charity are not included in the millionth criterion for VAT payer registration (item72 of subsection 2 of the Transitional Provisions of the Tax Code).
Extension of terms
Different terms do not expire during quarantine.
Here are some:
- action limitation period under the Civil Code;
- terms for administrative appeal of tax decisions (Article 56 of the Tax Code);
- terms for filing an application to court over an employment dispute (Article 233 of the Labor Code);
- many court cases concerning administrative disputes, including the terms of appeal to the administrative court (changes in the Administrative Court Procedure Code);
- procedural time limits for commercial litigation (changes in the Code of Commercial Procedure);
- limitation periods in disputes on recognition of paternity/motherhood under the Family Code, etc.
General meeting of participants/shareholders
The obvious problem with the general meeting is settled. JSCs may gather to discuss the 2019 performance within three months after the quarantine is over (paragraph 10 of the Final Provisions of the Law on JSC).
The LLC has 6 months for the annual general meeting (Article 31 of the Law on the LLC). But now this period has been extended to 3 months after quarantine.
The terms for disclosure of information to the issuers of securities was delayed (5 days after the general meeting).
