News (#11-12 November-December 2020)

Draft

Draft law on debt repayment of Ukrnafta and compensation to Naftogaz

Draft law No. 4119 On Amendments to the State Budget for 2020, which Stipulates a Mechanism for Repayment of UkrnaftaТs Tax Debts Worth UAH 30.35 billion, Payment of Budget Compensation to Naftogaz Worth UAH 32.2 billion for the Performance of Special Duties on the Sale of Gas at Non-market Tariffs for† Public Needs, was registered at the Verkhovna Rada.

Moreover, the document stipulates the financing of infrastructure projects to the tune of UAH 10.3 billion.

The explanatory note states that the Draft Law will not have a negative impact on the state budget balance, as additional expenditures of UAH 32.2 billion, as well as funding state support measures related to infrastructure projects to the amount of UAH 10.3 billion, as established in it, will be fully covered by additional funding sources not taken into account during planning for the 2020 state budget.

The issue here is repayment of tax debt, as well as about certain monetary obligations, which are in process of judicial or pre-judicial (administrative) appeal, taking into account penalties and financial sanctions against† Ukrnafta PJSC on payment of rent for subsoil use, corporate income tax, and value-added tax, as well as a number of additional tax revenues.

The total amount of additional tax revenues to the special funds of the state budget under this operation will come to UAH 42.5 billion.

E-residency with income tax at 5% is offered to foreign IT specialists.

Draft Law No. 4245 with amendments to the Budget Code on the E-residency Mechanism, which, in particular, establishes a reduced income tax at a rate of 5%, was registered with the Verkhovna Rada.

In the Draft amendments, it is proposed to create a legal framework for attracting foreign employees as e-residents Ч taxpayers in Ukraine without a physical stay in the territory of our country.

The purpose of the Draft is to regulate certain aspects of budget legislation related to the experiment on the introduction and implementation of e-residency in Ukraine.

This will allow foreigners and stateless persons who have acquired e-resident status to carry out business activities and pay taxes in Ukraine without leaving their country of residence (stay).

Draft law on self-regulatory organizations registered in Parliament

Draft Law No. 4221 On the Self-regulation of Economic and Professional Activities was registered in the Ukrainian Parliament.

At the same time, its effect does not apply to public relations in the areas of national security and defense; ensuring law and order; judicial self-government; prosecution self-government; advocacy and advocacy activities; notary; activities of natural monopolies.

This initiative is intended to create self-regulatory organizations (SRO) in areas like security activities, advertising activities, activities in the fields of medicine and education.

The possibility of self-regulation is now established in 15 areas. At the same time, in 4 areas there is no proper regulatory regulation in terms of the procedure for creating and operating self-regulatory organizations. 24 self-regulatory organizations are officially recognized in Ukraine.

SRO is a non-entrepreneurial society that unites business entities and/or subjects of professional activity for self-regulation in the forms and limits of their economic or professional activities, as defined by law, and for representation and protection of their rights and interests.

The project divides the concepts of the subject:

Ч of economic activity Ч a legal entity of private law and/or an individual Ч an entrepreneur carrying out economic activity in a certain area or of a certain type, which is the subject of self-regulation;

Ч professional activity Ч an individual with education, possessing knowledge and skills determined in professional standards or qualification characteristics of the professions of employees carrying out activities in the relevant area (industry), or of a certain type, that is subject to self-regulation.

Moreover, it is stipulated that permanent arbitration courts can be established and operate under SRO.

Parliament decided to regulate activities of debt collectors and set requirements

Draft Law No. 4241 On Amendments to Certain Legislative Acts of Ukraine to Protect Debtors in Settlement of Overdue Debts is now registered in the Verkhovna Rada.

The Draft Law aims to set out clear rules for debt collectors and to regulate their activities, in particular: the procedure for registration of a debt collection company; requirements for ethical conduct with debtors; requirements for supervision of collection activities; sanctions for violations.

The Draft provides for establishing a public register of debt collection companies, which will be kept by the National Bank of Ukraine.

The NBU will supervise the activities of debt collectors and their conduct with consumers. That is, the NBU will monitor the compliance of collectors with legislation, set additional requirements for interaction with consumers, protect the rights of consumers, and consider applications from citizens.

The regulator will also be able to charge fines or exclude violators from the Register of Debt Collection Companies in the event of violations.

In addition, the document stipulates that banks and financial companies will be required to warn clients at the stage of signing a consumer loan agreement about the possibility of the enlistment of a debt collector in the event of payments on a loan becoming overdue.

The Draft Law also stipulates an exhaustive list of permitted methods of interaction of the debt collector with the consumer of financial services and sets limits on the maximum frequency of such interaction.

Violators of these requirements are held liable through fines and up to exclusion from the Register of Debt Collection Companies.

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