Lawyers Call for Urgent Measures to Save Businesses in Quarantine

2020-04-10

KYIV - April 10, 2020. The UBA Committees on Tax and Customs Law and Real Estate and Construction appealed to the Chair of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Danylo Hetmantsev to consider a legislative initiative to help businesses directly affected by the quarantine. It should help to preserve economic activity, jobs, salaries, and restore financial performance as soon as possible.

On March 30, the Law of Ukraine № 540-IX “On Amendments to Certain Legislative Acts Aimed at Providing Additional Social and Economic Guarantees in Connection with the Spread of Coronavirus Disease (COVID-2019)” was adopted. It shortens the period during which no payment for land and tax on real estate other than land until March 31, 2020.

The quarantine measures were extended until April 25, and its probable duration is until May 12. In this regard, lawyers emphasize that such changes are completely premature for all businesses without exception.

In addition, experts noted that the law does not take into account the impact of quarantine on business. They stressed that the business is almost completely deprived of the opportunity to receive income, however, bearing an obligation to pay interest on the use of credit funds. We are talking about landlords, whose activities are limited due to quarantine. Tenants are in a similar situation these days,   deprived of the opportunity to carry out their activities.

In view of this, the lawyers propose to the state to provide an interest-free deferral of payment of all taxes for a certain period after the end of quarantine. This, they said, will give businesses the opportunity to recover after the quarantine.

“The members of the UBA Committees are ready to join the development of the relevant draft law and take part in its discussion in working groups and meetings of the Committees of the Verkhovna Rada of Ukraine,” the letter reads.

The full text of the open appeal is available by the link.

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