Discount Rate at 13%, E-Booking in Diia, Making Licenses Declarative

Parliament Approves Gradual Approximation of Excise Tax Rates to the EU Minimum Level in 2028

On 18 July 2024, the Verkhovna Rada of Ukraine adopted the Law “On Amendments to the Tax Code of Ukraine on the Implementation of the Provisions of the European Union’s Excise Tax Acts” (Draft Law No. 11256-2).

The purpose of this Law is to provide additional funding for the security and defense sector of Ukraine.

In addition, the harmonization of excise taxes with EU legislation is one of the measures under the IMF’s Extended Fund Facility program to ensure financial stability, mitigate risks and achieve the goals of EU accession.

We have already written about the novelties proposed by the Law in our previous post.

The Law is currently being prepared for submission to the President of Ukraine for signature.

National Bank of Ukraine Keeps Discount Rate at 13%

At its meeting on 25 July 2024, the Board of the National Bank of Ukraine decided to keep the discount rate at 13%.
This decision is aimed at ensuring the stability of the foreign exchange market and bringing inflation closer to the 5% target over the forecast horizon.

At the same time, the NBU reports that if the risks to inflationary developments and the foreign exchange market ease, in particular as a result of Ukraine’s possible receipt of more financial support, the NBU will consider resuming the discount rate cut cycle more quickly. At the same time, the NBU will be ready to tighten its monetary policy if price pressures increase significantly and risks of an imbalance in expectations arise.

The next meeting of the NBU Board on monetary policy will be held on 19 September 2024.

Electronic Booking is Now Available in Diia: Algorithm and Why It’s Necessary

According to the Government Portal, from now on, directors of critical enterprises can book employees through the Diia portal.
The newly created automated service will significantly speed up the booking procedure, and the result will be available within a day.

The booking algorithm on the Diia portal

Ministries and regional military administrations include enterprises, institutions and organizations that have the right to book employees in the Unified List of Institutions (authorities, enterprises, organizations) in accordance with the law.
The director of a company that has the right to book its employees submits a list of employees to be booked on the Diia portal and certifies the application with an electronic signature.
The system automatically checks whether the person is officially employed and whether his data is in the Oberih register.
Within a day, Diia sends a notification to the director about the result of the review.
In case of a positive decision, the system automatically transfers the person liable for military service to a special military registration for the duration of the reservation. From that moment on, he is considered booked, and information about the reservation appears in the Reserve+ app.

The reservation statement can be downloaded on the Diia portal and printed if necessary. You can also submit booking documents in paper format if you wish. Both forms of submission will have the same weight.

In particular, as of 24 July 2024, just a week after the service was launched, more than 55,000 employees of critical enterprises were booked online (according to the Ministry of Digital Transformation).

Verkhovna Rada Supports Draft Law Making Permits and Licenses Declarative

This refers to the Law “On Amendments to Certain Laws of Ukraine on Simplifying the Conditions for Conducting Business Activities during the Period of Martial Law in Ukraine” (Draft Law No. 7331), which was adopted by the Verkhovna Rada as a whole on 17 July 2024.

According to the Ministry of Economy, this draft law simplifies doing business. Ukrainians will be able to start their own business that requires permits or licenses simply by declaring the relevant activities free of charge (except for high-risk activities, the list of which will be approved by the Cabinet of Ministers). It will be necessary to submit the documents required by law, including applications for the extension of permits, relevant reporting and other documents, after the end of martial law.

In addition:

The declaration submitted under this Law is equivalent in status to a permit or license. Declarations of economic activity submitted earlier shall continue to be valid in accordance with this Law.
The declaration may be filed anywhere in Ukraine, regardless of where the company is located or where the entrepreneur resides.
The declaration is valid for the period of martial law and until the end of the calendar year in which martial law is terminated or canceled (but not less than three months from the date of its termination or cancellation). After that, the entrepreneur must apply for the relevant permits or licenses from the licensing authorities. In case of such an application, the declaration will be valid until the permit is obtained or refused.
Previously obtained permits and licenses that expire will be automatically extended until the end of the calendar year in which martial law is terminated or canceled (but for a period of not less than three months from the date of its termination or cancellation).
During the period of martial law, there is no need to reissue previously obtained permits, amend information in declarations, etc. (even if the statutory deadlines for doing so have passed).
Mandatory reports, notifications, and documents that were not submitted during martial law must be submitted by the end of the calendar year in which martial law is terminated or canceled (but not less than three months from the date of its termination or cancellation).
Scheduled inspections on the issuance of permits are suspended for the duration of martial law.

The Government is obliged to adopt the bylaws necessary to implement the Law within 2 months.

The Law is currently being prepared for submission to the President of Ukraine for signature.