The Law of Ukraine “About currency and currency transactions”

The Law of Ukraine “About currency and currency transactions”

On 7 February 2019, the Law of Ukraine “About currency and currency transactions” along with a number of the National Bank of Ukraine regulations entered into force.

Among the main innovations are the following:

  • export-import operations in an amount not exceeding UAH 150 thousand, are no longer subject to currency control;
  • an individual license for currency transactions is canceled. However, for legal entities and private entrepreneurs there will be an e-limit of 2 million euros per year, for individuals –of 50 thousand per year;the deadline for settlements under foreign economic agreements is increased to 365 calendar days;
  • the limit on the transfer of foreign currency abroad without opening an account for individuals is increased from 15 to 150 thousand UAH per year;
  • the law keeps in force the mandatory sale of 50% of revenue in foreign currency.

At the same time, the size of the fine for illegal purchase, sale, exchange, and use of foreign currency, as well as a deliberate violation of the terms of its return to Ukraine, is significantly increased. In addition, the tax authorities are authorized to impose a penalty in the amount of 100% of the transaction amount for violations of currency legislation.

The size of the penalty for violation of the settlement deadlines is also kept unchanged. It stands at 0.3%.