New Anti-Crisis Law Signed!

The Cabinet of Ministers of Ukraine, by its Resolution No. 211 of March 11, 2020, introduced preventive measures to combat the spread of the COVID-19 virus throughout Ukraine. Quarantine has already become a part of our lives, changing the rhythm of our daily routine. Unfortunately, these precautions carry the downside. For example, it is not the individual companies but the whole spheres that may be in a critical state. Therefore, the response of the authorities should be immediate to support the economy.

The introduction of such measures by the new Cabinet has a direct impact on how the state will fulfil its obligations to citizens and international partners. As noted above, the spread of the coronavirus to the world leads to many negative economic indicators, including a fall in the GDP of many countries, a general decline in business and economic activity, a decline in production levels, an increase in unemployment and more. Ukraine is urgently required to amend the current legislation precisely to reduce the negative impact of the COVID-19 proliferation and to further ensure the fulfilment of its functions and obligations by the state.

Over the last two weeks, the Ukrainian Association of Furniture Manufacturers, together with MPs and representatives of other business associations, have held a number of meetings to streamline important priority steps that need to be made to support the furniture industry.

And already on March 30, 2020, the Verkhovna Rada of Ukraine endorsed the Bill amending certain legislative acts aimed at providing additional social and economic guarantees in connection with the spread of coronavirus disease (COVID-2019), including those announced to parliament by the leadership UAM. The document is currently awaiting signature by the government.

First of all, the draft law proposes amendments to the Economic Code of Ukraine, the Civil Code of Ukraine, the Tax Code of Ukraine, the Code of Labor Laws of Ukraine, the Code of Administrative Procedure of Ukraine, the Criminal Procedure Code of Ukraine, the Economic Procedure Code of Ukraine, the Civil Procedure Code of Ukraine, the Law of Ukraine and the Bank of Ukraine banking, the Law of Ukraine “On Consumer Lending”, the Law of Ukraine “On Employment of the Population” and several other legislative acts.

Changes in laws that will help businesses and citizens survive the crisis

• The increased time limit for the introduction of increased limits on turnover for entrepreneurs – single taxpayers. In particular, the limit of Group 1 is UAH 1 million, Group 2 is UAH 5 million, Group 3 is UAH 7 million
• Receiving a tax rebate on the cost of charitable assistance for the purchase of necessary medicines or disinfectants and antiseptics, medical equipment, personal protective equipment in connection with the fight against COVID-19
• A moratorium on documentary and factual inspections by May 31, 2020
• The minimum allowable amount of rent is introduced if the tenant cannot use the real estate for the intended purpose
• Holidays for submission of financial statements for a period of 90 days
• Imports of medicines, equipment and remedies in connection with the fight against coronavirus are exempted from payment of duty until 30 June 2020
• Regulated the organization of remote (home) work and work on a flexible schedule
• Recorded an obligation on the employer to pay at least two-thirds of the quarantined quota or wage rate
• In the event of pandemic staff redundancies, the possibility of obtaining unemployment assistance from the Mandatory State Social Insurance Fund of Ukraine in the event of unemployment is provided
• Continue until May 31, 2020 exemption from fines and penalties and introduce a moratorium on checks on the ECI, as well as extend the deadline for filing tax and ECV complaints
• To instruct the Cabinet to urgently prepare an economic program to overcome the crisis and support Ukrainian business

According to experts and MPs, these changes will provide the primary needs of the quarantined business in terms of relationships with employees and contractors, which should clearly strengthen the protection of the business environment as a whole in the face of new economic challenges and realities.