NewsOn November 24, 2009 the Ukrainian Law “On Amendment of Certain Ukrainian Laws with view to Eliminate the Negative Impacts of the Financial Crisis” of June 23, 2009 No. 1533-VI entered into force.
The above Law amended a series of laws introducing many changes into practice and regulations of domestic companies as well as physical entities.
Please note the most important amendments:
1. Due to changes into the Ukrainian Law “On settlements in foreign currency”, the period when the residents’ income should be returned into Ukraine reduced from 180 calendar days to 90 calendar days. 2. Section 7 of the Ukrainian Law “On corporate income tax” was supplemented with paragraph 7.9.7 which set forth that companies should keep a separate accounting of financial transactions aimed at sale (transfer) or purchase of the right to demand fulfillment of obligations in monetary form for goods supplied, job performed or services rendered by third person as well as financial credit obligations and civil agreement obligations. Besides, the mentioned paragraph envisages the procedure of listing the above results into gross income and gross expenses of a taxpayer and the amounts related. 3. Section 13 of the Ukrainian Law “On regime of the foreign investments” has been amended. The new edition provides for that until January 1st, 2011 the foreign investments are subject to mandatory registration. Also, the period of registration of foreign investment in property form decreased to three days after they date of factual investment. Also, please note that the existing procedure of registration of foreign investment by local state administrations is as of now applicable only to non-monetary investment, while the monetary investment is subject to registration procedures to be introduced by the National Bank of Ukraine. No such procedures have been adopted by the NBU so far, and before they are adopted the state registration of monetary foreign investment will not be possible. Even though the Law specifies no clear legal consequences for the failure to comply with the registration requirements, the foreign investors might face difficulties in case of foreign investment return (be it through the sale of interest in Ukrainian company, redemption of shares or otherwise). 4. Section 10 of the Ukrainian Law “On individuals income tax” from now on expressly states that a part of interest for mortgage credit factually paid during a tax year in national and foreign currency may be included into the tax credit of individual’s income taxpayer. Also, it is decided that the provisions which prescribed obligatory listing of income received as interest for current or deposit bank account (including card account) or deposit to non-bank financial institutions according to the law or interest (discount income) for deposit certificate, shall be suspended until January 1st, 2013. 5. The Moratorium is declared for 2009-2010 on obligatory eviction from residential premises where a physical entity-mortgage debtor is registered and the residential premises is the only mortgage debtor’s place of residence, if interest for mortgage credit are repaid in time or with a slight delay not exceeding two months, and if the procedure of debt restructuring is in written regulated with the bank. 6. Until January 1st, 2011: 6.1. The rights of banks to extend loans in foreign currency to resident and non-resident physical entities are restricted, save payments for medical treatment and studies abroad. 6.2. The National Bank of Ukraine shall not register amendments into loan agreements with residents and credit agreements with non-residents in foreign currency, if they reduce the resident borrowers’ maturity period of loan. Resident borrowers are also forbidden to fulfill their duties under such agreements in advance (this regulation applies also to agreements entered into before these legal regulations were amended). 6.3. It is established that the foreign investments in monetary form shall be transferred into Ukraine only in the national currency of Ukraine (UAH) according to the procedure set by the National Bank of Ukraine. 7. Certain changes also concern banking sphere. Among them increase of minimal authorized capital of new banks, certain tax privileges etc. We kindly ask you to take the above amendments into consideration and contact us in case if you consider these new regulations might have legal consequences for you.
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