STATE ACTION ON CORONAVIRUS

On March 11, 2020 the Cabinet of Ministers of Ukraine adopted Resolution On Preventing the Spread of COVID-19 in Ukraine, according to which the quarantine has been introduced throughout Ukraine from March 12 to April 3, 2020. As of today the Ministry of Health of Ukraine admits the lockdown may be extended.

From March 16 to April 3, 2020 all foreigners and people without citizenship will be prohibited from entering the country. Depending on further developments with the pandemic, the restrictive measure may be lifted or extended. Ukraine also halts all regular passenger services including flights, trains and buses to and from Ukraine.

On March 17, 2020 the Law of Ukraine On Amendments to Certain Legislative Acts of Ukraine Aimed to Prevent the Occurrence and Spread of the Coronavirus Disease (COVID-19) (No. 530-ІХ) (the Law) was brought into force.

COVID-19 OUTBREAK = FORCE MAJEURE?

Please note the above Law amends the Law of Ukraine On Ukrainian Chamber of Commerce and Industry and classified the COVID-19 outbreak as a force majeure event. At the same time, it should be noted this vis major does not automatically release a contracting party from liability as particularly its impact on breach of obligations should be duly proved. 

Anyway on this stage we recommend the contract partners to arrange mutual agreement or amicable proceedings. At the same time the relevant certificate issued by Ukrainian Chamber of Commerce and Industry may solidify the legal position before the court.

RESTRICTION MEASURES

Due to the Law the following measures are prohibited within the quarantine period and 30 days later after its abolition:

- accrual and collection of penalties (fines) for utility services overdue payments;

- termination/suspension of utility services to the citizens of Ukraine in case of their failure to pay or making partly payments;

- forced eviction or foreclose of residential houses or their parts, apartments, rooms in apartments, rooms, residential sections or blocks in hostels as well as other living premises owned by the citizens of Ukraine under the court decisions related to utility services debt collections;

- forced eviction of Ukrainian citizens for late payments for utility services from residential premises in the state and municipal owned residential houses.

Please also note that by March 20, 2020 Ukrainian government shall also amend and submit for Parliament consideration the following bills:

- on suspending obligations secured by the mortgage and prohibiting foreclosure of mortgaged property within the period of quarantine and restrictive measures related to the COVID-19 outbreak. Currently there is no any public information on the relevant draft bill;

- on preventing termination of housing subsidies within the period of quarantine and restrictive measures related to the COVID-19 outbreak;

- on assigning housing subsidies for the following period for all households who obtained a housing subsidy in the previous period, without their request.

- on expanding the range of recipients of housing subsidies.

TAX AMENDMENTS

On March 18, 2020 The Law On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine to Support Taxpayers for the Period of Measures Aimed at Preventing the Emergence and Spread of COVID-19 (No. 533-IX) came into force. This Law provides the number of novelties and determines the tax benefits for the quarantine period.

LAND TAX

The land tax is not accrued and is not to be paid for the period from March 1 to April 30, 2020 for the land plots (state and municipal land plots), owned and leased by individuals and legal entities involved in their business activity.

Land tax payers (legal entities) may file a clarifying declaration that reflects changes to the land tax liabilities for the relevant period. At the same time tax authorities will automatically recalculate the land taxes for individuals.

REAL ESTATE TAX

Non-residential property owned by individuals or legal entities is not subject to real estate tax for the period from March 1 to April 30, 2020.

The tax payers (legal entities) may file a clarifying declaration that reflects changes to the real estate tax liabilities for the relevant period. At the same time tax authorities will automatically recalculate real estate tax for individuals.

Also Kyiv city authorities prepares a draft decision of Kyiv City Council on reduction of rent payment for municipal property.

The draft decision proposes temporarily (from March 11 till July 31, 2020) to set a rent payment fee for the municipal property in Kyiv in the amount of 50% of the amount specified in the lease agreements. The decision will be considered at the next city council meeting.

Please kindly note KPD Consulting Law Firm commits to providing full and continuous legal services adapted to the anti-COVID measures implemented in Ukraine. Our teams are well set up to work remotely, whilst being fully available via phone and email. For any further details, our clients may always get in touch with their relevant contact partner in our law firm. In case of any problems please contact our reception board +380442343619

Should you have any questions with respect to above or require any additional information, please do not hesitate to contact Mr. Vladyslav Kysil  (v.kysil@kpdconsulting.com.ua), Mr. Mykhailo Semka (m.semka@kpdconsulting.com.ua) or Ms. Anastasiia Polishchuk (a.polishchuk @kpdconsulting.com.ua). We will be pleased to assist You.

The information contained in this overview is not intended to provide legal advice and should not be relied on or treated as a substitute for specific advice concerning individual situations.