The Verkhovna Rada passed a number of laws to prevent the occurrence and spread of coronavirus infection (COVID-19). Our lawyer Iryna Romaniuk analyzed what has changed and what the consequences will be for people and business.
After the first case of coronavirus infection was detected in Chernivtsi on March 3, the virus began to spread rapidly throughout Ukraine.
In this regard, on March 17, the Verkhovna Rada passed two laws:
- “On Amendments to Certain Legislative Acts of Ukraine Aimed at Preventing the Occurrence and Spread of Coronavirus Disease (COVID-19)”;
- “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Support of Taxpayers for the Period of Implementing Measures to Prevent the Occurrence and Spread of Coronavirus Disease (COVID-19)”.
The goal is to prevent the spread of COVID-19 coronavirus among the population of Ukraine and reduce the negative impact of this disease on the country’s economy.
The adopted laws provide for a number of measures, in particular:
- Measures to prevent and treat coronavirus disease:
– procurement of goods, works and services necessary for the prevention and control of coronavirus, without applying the procedures provided by the Law of Ukraine “On Public Procurement”;
– 100% prepayment for such goods, works and services;
– exemption from import duties and VAT on medicines, medical devices and / or medical equipment designed to prevent the occurrence and spread of coronavirus disease (COVID-19);
– control by the Cabinet of Ministers of Ukraine over the prices of medicines, medical supplies and socially significant goods.
Such rules will be temporary.
- Protection of the rights of individuals and legal entities during quarantine and restrictive measures:
– the possibility of working at home for employees, civil servants and employees of local governments and granting leave with their consent;
– the owners have the right to change the modes of operation of bodies, institutions, enterprises, institutions, organizations, in particular, the reception and service of individuals and legal entities with mandatory information about it through websites and other means of communication;
– a ban was imposed on the revocation of the certificate of registration of an internally displaced person (for the period of quarantine and for 30 days after its cancellation);
– it is prohibited to bring to administrative responsibility foreigners and stateless persons who have not been able to leave Ukraine. Or they could not apply to the territorial bodies / subdivisions of the State Migration Service of Ukraine with a request to extend the period of stay on the territory of Ukraine, in connection with the introduction of quarantine measures;
– the legal fact of quarantine was attributed to force majeure;
– terms of receiving and providing administrative and other services were extended;
– introduced a number of measures aimed at protecting the rights and interests of internally displaced persons, preventing the cessation of housing subsidies, registration of the unemployed, etc .;
– a ban was imposed on state supervision (control) bodies to carry out planned measures to carry out state supervision (control) in the sphere of economic activity.
In addition, the Government has been instructed to set additional co-payments of up to 200 percent of the salaries of medical and other workers directly involved in the eradication of coronavirus disease among people within a week. However, only for the period of implementation and until the completion of these measures, as well as surcharges to certain categories of workers who provide the main areas of life.
- Establishment of administrative and strengthening of criminal responsibility:
The Code of Ukraine on Administrative Offenses was supplemented by a new Article 44-3 “Violation of the rules on quarantine of people”, which establishes administrative liability for unauthorized leaving the place of observation (quarantine) by a person who may be infected with coronavirus COVID-19. Article 325 of the Criminal Code also increases criminal liability for violating sanitary rules and regulations on the prevention of infectious diseases.
Thus, violation of relevant rules and regulations, if such actions caused or knowingly caused the spread of these diseases, is punishable by a fine of one thousand to three thousand non-taxable minimum incomes (17-54 thousand hryvnias. – Ed.) Or arrest for up to six months, or restriction of liberty for up to three years, or imprisonment for the same term.
- Introduction of tax and non-tax benefits for business:
– penalties for violations of tax legislation committed during the period from March 1 to April 30, 2020 (except in a few cases) are not applied;
– a moratorium was established on conducting documentary and factual inspections from March 18 to May 18, 2020;
– the deadline for submitting the annual declaration of property and income has been extended until July 1, 2020;
– no land fee is accrued or paid in the period from March 1, 2020 to April 30, 2020 for land plots used by individuals or legal entities in economic activities;
– non-residential real estate owned by individuals or legal entities is not subject to real estate tax, other than land, from March 1 to April 30, 2020;
– for the period from March 1 to April 30, natural persons – entrepreneurs, persons engaged in independent professional activity and members of the farm are exempt from accrual and payment of a single contribution to the obligatory state social insurance;
– for the period from March 1 to April 30, consumers are released from liability for late payment of consumer credit agreements.
In theory, such measures should minimize the negative consequences for both people and the economy. However, the provisions of these laws are subject to criticism.
Thus, the notion of “quarantine of people” introduced by Article 44-3 of the Code of Administrative Offenses is criticized, as the current legislation of Ukraine does not operate with this term.
In addition, there is no proper justification for the different deadlines set in the Tax Code (March 1 – May 31, March 18 – May 31, March 1 – April 30, March 18 – May 18), which relate to the same event – the spread coronavirus disease (COVID-19).
Finally, the introduced rules for exemption for the period from March 1 to April 30 from the obligation to pay for land and pay tax on real estate other than land for non-residential real estate will reduce local budget revenues.
Such tax benefits, which reduce the revenues of local budgets, should be accompanied by the provision of additional subsidies from the state budget to local budgets to compensate for the corresponding losses of revenues. However, the laws passed on March 17 do not provide for any such subsidies for local budgets.
Author: Irina Romanyuk, Ph.D., lawyer
office@sls-group.com.ua
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