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The so-called BEPS Law (No. 466-IX) changed corporate profit taxation rules in Ukraine. The majority of its provisions entered into force on May 23, 2020. Others will become effective later on.

Upon lifting of the quarantine rules, many companies start to resume their activity. All of them intend to renew activities with minimum expenses and maximum comfort for their employees. Many companies will look for optimisation options. Below the INTEGRITES team summarises the main solutions available under the effective laws of Ukraine.

Quarantine restrictions implemented by the Ukrainian Government due to the COVID-19 pandemic had a sensible impact on the business in Ukraine, which can’t disappear without any trace. A lot of companies tried or are still trying to find a reasonable solution in order to reduce expenses on staff, as well to optimize their business processes and revise organizational structures.

The quarantine which followed the spread of the COVID-19 in Ukraine has fundamentally changed conditions for doing business in Ukraine. Some companies suspend their work, others reduce staff and/or employees' salaries to keep operations going in crisis times. To comply with Ukrainian law, it is important to formalise labour relationships correctly. What are the options for business in Ukraine during quarantine?

Integrites has helped Agro Group, a Ukraine-based sugar producing company, complete a competition investigation project involving the sugar beet processing market initiated by the regional department of the Antimonopoly Committee of Ukraine in the country's Chernihiv region.

“The Russian Government has been very active in addressing concerns of business regarding inadequate regulatory control that has been increasing over last years,” says Andrey Ryabinin, Partner at Integrites in Moscow. “Several declarations have been made in this respect. As part of the reform known as 'regulatory guillotine' the Government is expected to eliminate in 2020-2021 several thousand outdated and excessive regulations in various industries regarding technical standards and requirements in business practice, most of which date back all the way to the Soviet times.”

The COVID-19 pandemic is making a significant impact on international commerce with Ukrainian counterparties involved. Interrupted supply chains of goods (especially if they were partly or fully produced in China), inability to provide services, perform works during quarantine, and to conduct regular business operations are just a few problems that lots of companies have encountered.

On March 18, 2020, President Zelensky signed a package of laws regarding support of taxpayers and individuals during national quarantine (Laws No. 3220, 3219, 2538, 2539). What tax-related novelties do these laws introduce for business? See below the summary from INTEGRITES Tax and Customs team.

Integrites Advises MUFG, Citi, Credit Agricole, and Societe Generale on Financing for Trafigura Acquisition

Integrites and Switzerland's HFW law firm have advised MUFG Bank and a syndicate of lending banks including Citi, Credit Agricole, and Societe Generale on a limited recourse term loan to finance Trafigura’s acquisition of copper cathodes from the Swiss trading arm of the Russian mining group Norilsk Nickel.

Starting from October 21, 2019 a new bankruptcy code entered into force in Ukraine substituting the law that had been in effect since 1992 (the «Law»). New legislation is aimed at making the procedure more efficient and expedient, as well as at granting the creditors more control over the insolvency process.

On February 1, 2020, the new Law on Lease of State-Owned and Municipal Property (the “Law”) came into force. The Law substitutes the old one that has been in use since 1992 and launches a fundamentally new mechanism for the lease of state/municipal property which aim to:

On 31 January 2020, the Resolution of the Cabinet of Ministers of Ukraine (“CMU”) “On Implementation of Competitive Conditions of Stimulating the Production of Electric Power from Alternative Energy Sources”, dated 27.12.2019, No. 1175 (“Resolution”), came into force. The Resolution has adopted, inter alia, the procedure on holding the support quota distribution auctions (“Procedure”).

Integrites has successfully protected the interests of Euronet Ukraine, the Ukrainian representative of the Euronet Worldwide group, in a UAH 64 million tax dispute with the Kyiv State Fiscal Service.

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Integrites at a Glance

INTEGRITES is a full-service law firm with the head office in Ukraine, offices in Kazakhstan and Russia, and representative offices in Germany, the Netherlands, and the UK.

We provide legal services to companies seeking comprehensive advice on large deals and major disputes, as well as day-to-day operation. INTEGRITES is highly recommended for its cross-border work (whether sophisticated transactions or complex dispute resolution) and for the projects in energy, in particular, renewable.

Our mission is to help companies concentrate on development of their business while we take care of the legal issues. With profound industry-focused expertise, we deliver legal solutions that add value to the business of our clients and help them successfully handle legal challenges.

In 14 years INTEGRITES has served more than 850 clients from around the globe, including Fortune 500 companies and international financial institutions. Clients in our portfolio are recognized leaders in various industries: from manufacturing, pharmaceuticals, and retail to agriculture, logistics, and renewables. Currently 80% of the companies we serve are international.

INTEGRITES has been consistently recognized by the leading international legal directories and rankings: Chambers Global/Europe, The Legal 500 EMEA, Who’s Who Legal, IFLR 1000, Best Lawyers, FT Innovative Lawyers.

All News about, and Legal Analysis by, Integrites can be found here.

Firm's website: www.integrites.com