On December 4, 2020, the Verkhovna Rada of Ukraine enacted two laws providing incentives to support businesses during the quarantine restrictions: Law of Ukraine No. 1071-IX “Law of Ukraine of December 4, 2020 No. 1071-IX “About social support of insured persons and subjects of managing for implementation of the restrictive anti-epidemic actions entered for the purpose of prevention of distribution in the territory of Ukraine of sharp respiratory disease of COVID-19, of SARS-CoV-2 caused by coronavirus” and Law of Ukraine No. 1072 -IX “On Amendments to the Tax Code of Ukraine and other laws of Ukraine on social support of taxpayers for implementation of the restrictive anti-epidemic actions entered for the purpose of prevention of distribution in the territory of Ukraine of sharp respiratory disease of COVID-19, of SARS-CoV-2 caused by coronavirus”.
1. Law No. 1071-ІХ provides incentives in the form of one-time preferential payments to individuals or companies:
- UAH 8,000 to employees of business entities, the activities of which were suspended due to quarantine or who lost part of their salaries due to the introduction of quarantine (the list of enterprises will be provided by the Cabinet of Ministers of Ukraine)
- To enterprises to preserve jobs in order to pay one-time financial assistance to their employees during the quarantine (no more than UAH 8,000 per employee). Enterprises are eligible for this benefit if they were forced to reduce the working hours of their employees and were included in the above list;
- A one-time payment to business entities to reimburse the costs for the payment of social contribution in the amount of average monthly social contribution payment for the last ten months.
2. Law No. 1072-ІХ provides incentives in the form of release from certain tax obligations:
- Writing off of the taxpayer’s debt for all taxes and fees (not exceeding UAH 3,060)
- Exemption from taxation for 1st group single tax payers for December 2020 and January-May 2021
- Postponing the tax debt repayment until 29.12.2021 for taxpaying individuals, whose tax debt does not exceed UAH 6800.
How can SCHNEIDER GROUP help?
If you would like to have more information about the list of companies which can qualify for benefits or on legal and tax regimes and incentives in Ukrainian legislation, please do not hesitate to contact us. SCHNEIDER GROUP legal experts in Ukraine will be ready to advise you on peculiarities of the current Ukrainian legislation in this regard.