Law on 2% Single Tax Canceled, NBU Cuts Discount Rate to 22%

Law on 2% Single Tax Cancelation is Published

On 28.07.2023, Law of Ukraine No. 3219-IX “On Amending the Tax Code of Ukraine and other laws of Ukraine regarding the peculiarities of taxation during martial law” was published in the newspaper “Voice of Ukraine”.

Let us please remind you that the document will enter into force on 01.08.2023.

Let us please also note that in addition to the cancelation of the 2% single tax, the Law also restores the application of fines for violations of tax legislation, the payment of single social contribution, transactions with the registrars of settlement operations.

More details about the main innovations of the adopted Law.

NBU Cuts Discount Rate to 22%

As reported by the press service of the NBU, the Board of the National Bank decided to cut the discount rate from 25% to 22% from 28.07.2023.
It is also noted that the rapid disinflation and sustained FX market conditions enabled the central bank to start the cycle of discount rate cuts. At the same time, reducing the discount rate against the backdrop of sustained macrofinancial stability will support economic recovery.

Parliament Supported Business Conditions’ Simplification during Martial Law

On 28.07.2023, the Verkhovna Rada adopted in the first reading the law that simplifies the conditions for conducting economic activities in Ukraine during martial law (draft law No. 7331).

Thus, the draft law provides for the following:

the right for business entities to carry out economic activities, that require an appropriate license or special permit, without such licenses/permits (except for critical industries, the list of which is established by the Cabinet of Ministers);
automatic extension of previously issued licenses/permits’ terms;
postponement of reporting and making relevant payments for licenses obligations.

According to the statement of the Ministry of Economy, the adoption of this law will ensure the fulfillment of one of the obligations of the Memorandum of Understanding between Ukraine and the EU dated 16.01.2023.

Currently, the draft law is being prepared for the second reading.

Parliament Supported Electronic Declaration’ Restoration

On 27.07.2023, the Verkhovna Rada adopted in the first reading the law regulating the issue of declaring property and income during martial law (draft law No. 9534)

Thus, the draft law proposes to restore the anti-corruption mechanisms, in particular, the submission of declarations and the special audit provided for by the Law “On Prevention of Corruption” and the audit provided for by the Law “On Purification of Power” during the period of martial law, as well as to simplify the procedure for submitting such declarations.

“Urban-Type Settlements” will be Liquidated in Ukraine: Law is Adopted

On 28.07.2023, the Verkhovna Rada adopted as a whole the law (draft law No. 8263), which updates the classification of settlements in Ukraine, determines the procedure for their formation, liquidation and renaming, as well as changes in their status.

Thus, the law provides for the liquidation of an urban-type settlement as an administrative unit, establishing instead the following classification of settlements in Ukraine:

villages – with a population of no more than 5,000 people;
settlements – with a population from 5,000 to 10,000 people;
cities – with a population of 10,000 peoples or more.