• Investments support
  • Registration of non-residents in controlling authorities
  • Financial leasing
  • Amendments in the field of electronic communications
  • Remote work and work at home



  • Investments support

Law “On State Support of Investment Projects with Significant Investments” entered into legal force.

Key points:

  • According to the law, state support can be used by investors who initiate projects with an investment of 20 million euros with a project duration of up to five years and create new jobs.
  • The total amount of state support for new investment projects can be up to 30% of their volume.
  • Support will be provided to enterprises operating in the processing industry, transport, education, science and science and technology; health care, art, culture, sports, tourism and resort and recreation.

In addition, the adopted law provides for a special government authorized institution that will support these investment projects, assist investors from the beginning of the project and throughout their duration.

State support may be provided in the following forms:

  • exemption from payment of certain taxes and fees;
  • exemption from import tax of new equipment and components to it, which are imported exclusively for the implementation of the investment project;
  • ensuring the preemptive right to use land of state or communal land for the implementation of the investment project;
  • provision at the expense of state, local budgets and other sources not prohibited by law, construction of related infrastructure (highways, communication lines, heat, gas, water and electricity, utilities, etc.).

Requirements for the investment project:

  • processing industry (except for activities for the production and circulation of tobacco products, ethyl alcohol, cognac and fruit, alcoholic beverages), extraction for further processing and/or enrichment of minerals (except for coal and lignite, crude oil and natural gas), waste management, transport, warehousing, postal and courier activities, logistics, education, scientific and scientific-technical activities, health, arts, culture, sports, tourism and resort and recreational areas;
  • the project must provide for the construction, modernization, technical and / or technological re-equipment of investment objects, the purchase of necessary equipment (equipment) and components for it, and may provide for construction at the expense of the investor with significant investments necessary for the implementation of the investment project with significant investments of related infrastructure facilities;
  • creation of at least 80 new work places during the implementation period of the investment project with significant investments;
  • the amount of significant investments exceeds the amount equivalent to 20 million EUR;
  • the term of implementation of the investment project with significant investments does not exceed 5 years.

The following applicators could not receive a state support according to the Law:

  • non-profit enterprises;
  • legal entities, information about the ultimate beneficial owners of which is not disclosed;
  • legal entities registered in offshore zones, or in the authorized capital of which more than 50% of shares belong to legal entities registered in offshore zones;
  • legal entities registered in the Russian Federation.



  • Registration of non-residents in controlling authorities

Article 64 of the Tax Code of Ukraine “Registration of legal entities and separate subdivisions of legal entities” was amended in the part concerning the grounds for registration of non-residents in the controlling bodies.

The first paragraph of Article 64.5 of the Tax Code of Ukraine is supplemented by the following provisions:

  • was stated that non-residents who acquire ownership of an investment asset shall register in tax authorities;
  • registration in the controlling body of a non-resident shall be carried before the date of the first payment for the acquired investment asset – to the supervisory authority at the location of the Ukrainian legal entity, shares, corporate rights of which form the value of the investment asset that is the subject of such transaction.

Non-residents (foreign companies, organizations) conducting activity on the territory of Ukraine and/or which duly registered separate divisions on the territory of Ukraine, including permanent establishments, and as of January 1, 2021 are not registered in the controlling authorities, are obliged to submit to the controlling authorities within three months the documents for their registration in the manner prescribed by Article 64.5 of Tax Code of Ukraine.

Inspections regarding the compliance with mentioned requirements of the registration could be appointed starting from July 1, 2021.

Based on the results of the inspection, the controlling body could take one of the decisions:

  • register a non-resident on the basis of an inspection report, if the results of the inspection confirm that the non-resident conducts business activities through a permanent establishment in Ukraine;
  • annulate registration of separate unit, including a permanent establishment, a non-resident, if the results of the inspection confirm the termination of the non-resident’s activities in Ukraine, the absence in Ukraine of taxable objects and objects related to taxation in such non-resident, and a separate subdivision or permanent establishment of a non-resident has fulfilled the obligations of a taxpayer specified in Article 16 of Tax Code.



  • Financial leasing

Was adopted the law “On Financial Leasing” that defines the general legal and organizational principles of financial leasing in Ukraine in accordance with international legal standards in this area.

The Law provides a definition of “financial leasing”, according to which “this is a type of legal relationship under which the lessor is obliged, in accordance with a financial leasing agreement for a period and for a fee specified in such an agreement, to transfer to the lessee for possession and use as an object of financial leasing, property that belongs to the lessor on the right of ownership and was acquired by him without prior agreement with the lessee, or property specially acquired by the lessor from the seller (supplier) in accordance with the specifications and conditions established by the lessee, and provides for the presence of at least one of the signs of financial leasing established by this Law.

The law defines the key points of financial leasing:

  • the financial lease object is transferred for a period during which at least 75 percent of its initial cost is amortized, and the lessee is obliged, on the basis of a financial lease agreement, or another agreement specified in a financial lease agreement, to acquire a financial lease object during the term of the financial lease agreement with the further transfer of ownership from the lessor to the lessee at the price and on the terms stipulated by such a financial lease agreement or another agreement determined by the financial lease agreement;
  • the amount of lease payments at the time of the conclusion of the financial lease agreement is equal to or exceeds the initial cost of the financial leasing object;
  • the book (residual) value of the financial leasing object at the time of expiry of the financial lease agreement provided for by such agreement is no more than 25 percent of the initial value (price) of such financial leasing object as of the beginning of the financial lease agreement, etc.

The law defines the objects of financial leasing. The object of financial leasing can be property that is determined by individual characteristics and meets the criteria of fixed assets in accordance with the law, is not prohibited by law from free circulation on the market and in respect of which the law does not establish restrictions on its transfer to leasing.



  • Amendments in the field of electronic communications

The law “On electronic communications” governs the relations between the state, service providers and service users and is supposed to decrease the pressure on telecommunications service providers.

The law establishes the legal basis for activities in the field of electronic communications and radio frequency spectrum, defines the powers of the state to manage and regulate these activities, as well as the rights, obligations and responsibilities of individuals and legal entities involved in these activities or using electronic communications services.

Key points:

  • introduced the notification principle of registration of business entities operating in the field of electronic communications;
  • established an exclusive list of requirements for market participants;
  • introduced consultations with market participants on all issues affecting their interests;
  • established the procedure for submitting documents to the regulatory body in electronic form;
  • improved control (supervision) in the field of electronic communications in order to focus on crime prevention and reducing the potential pressure on businesses, reducing the number of inspections of these entities in their territory;
  • defined the principles of preliminary regulation, as well as the list of regulatory obligations that may be imposed on providers of electronic communications networks and/or services with significant market advantage in the market of certain electronic communications services, and the powers of the regulatory body to impose them;
  • defined the peculiarities of termination of electronic communication service providers;
  • established liability for violation of the legislation on electronic communications;
  • the terminology in the field of electronic communications has been clarified taking into account the EU legislation.



  • Remote work and work at home

Was adopted the Law “On Amendments to Certain Legislative Acts Concerning the Improvement of Legal Regulation of remote work”.

The law is drafted to improve legal relations in the field of regulation of remote and home work.

The main provisions of the law include the introduction of two independent types of work – remote and work at home.

To distinguish these two types of work the law included the definitions of each:

  • Remote work is a form of work organization when work is performed by an employee outside the work premises or the territory of the owner or his authorized body, at any place by the employee’s choice by using information and communication technologies.
  • Work at home is a form of work organization when work is performed by an employee at his place of residence or in other premises by his choice, characterized by the presence of a fixed zone, technical means (basic production and non-production assets, tools, devices, inventory) or their combination, necessary for the production of products, the provision of services, the performance of work or functions provided for by the constituent documents, but outside the premises of the enterprise.

The approved amendments prescribes the right of the employer when concluding an employment contract for remote or home work to receive information from the employee regarding the place of residence or other place by his choice, where the work function will be performed.


This information is a general overview and is not prepared to be a legal, accounting or other guidance.
Feel free to contact us for the individual consultation.

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