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SDM Partners concerning Limits for PE, Application "Diya", Tax regime for IT companies, Criminalization of smuggling, Term for applying to the ECHR, COVID Certificates.

27 Mayıs 2021


 Mayıs 27, 2021

Member of the Union of Industrialists and Businessmen of Turkey and Ukraine “TUSIB” – law Firm SDM Partners has prepared some clarifications on new issues:

Increase of the annual income limits for PE – unified tax payers, a draft law

On 06 May 2021, a draft law No. 5466 was sent to the profile parliamentary committee for consideration. The mentioned draft law involves measures to encourage the employment of additional workers by individual entrepreneurs who have chosen a simplified taxation system.

In particular, it is proposed,

  • (i) to increase the number of employees who may be hired by an individual entrepreneur – payer of the 1st group of the unified tax, up to 3 persons, for ones of the 2nd group – up to 20 persons,
  • (ii) to increase the annual income limit of an individual entrepreneur who is a unified tax payer by 85 amounts of a minimum salary (510,000 UAH), for each employee, employed by such individual entrepreneur with a month salary exceeding the minimum wage twice (12,000 UAH),
  • (iii) the maximum limit of the annual income of an individual entrepreneur using the above-mentioned mechanism is: for the 1st group of the unified tax – 442 amounts of a minimum salary (2,652,000 UAH), for the 2nd group – 1,089 amounts (6,534,000 UAH), for the 3rd group – 3,300 amounts (19,800,000 UAH).

Update of the application “Diya”

On 17 May 2021, the Ministry of Digital Transformation of Ukraine (the Mintsyfra) presented an update of the “Diya” mobile application, which implies functionality for interacting with tax authorities.

In particular, the application provides services that allow a user to track the status of his/her calculations with the budget, to review the archive of tax declarations and information about their acceptance, as well as to pay taxes online.

Special tax regime for IT companies

Draft law No. 4303, adopted in the first reading, provides a special legal regime “Diya City” for business entities operating in the sphere of IT. In particular, number of reduced tax rates and tax benefits for project residents are envisaged.

Criminalization of smuggling, a draft law

Draft law No. 5420, submitted to the relevant parliamentary committee on 29 April 2021 and defined as urgent, proposes to introduce new components of criminal offenses concerning smuggling of goods, smuggling of excisable goods and inclusion of unreliable information in the declaration into the Criminal Code of Ukraine.

It is assumed that the sanction for committing these offenses will be a fine, except in cases of qualifying circumstances: the commission of a crime by an official, by prior conspiracy, a group of persons or an organized criminal organization.

Currently smuggling is an administrative offense.

The term for applying to the ECHR has been reduced

Based on Protocol No. 15 to the European Convention, the period for filing a complaint with the European Court of Human Rights (ECHR) has been reduced from six to four months. The corresponding changes will come into force on 01 February 2022.

Government Plans to Implement COVID Certificates

According to the statement by the Minister of Health of Ukraine Mr. M.V. Stepanov, a COVID certificate, used for provision of citizens’ free travelling of citizens between countries in a pandemic, will be introduced by 01 July 2021. Considering the above, its form and content will meet the requirements of the European Commission.

It is assumed that the document will contain information about vaccinations, negative results of PCR tests and recovery from COVID-19. It is also planned to provide for the possibility of generating such a certificate in “Diya” mobile application.

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