In connection with the full-scale invasion of Ukraine launched by Russian occupation forces and the introduction of martial law, on 3 March 2022, the Ukrainian Parliament adopted a number of laws designed to regulate life under wartime conditions.
Loosened requirements for business
- The deadlines for filing tax returns, financial statements, accounting and other records (“Financial Records”) have been extended. The Financial Records must be filed within 90 calendar days after martial law is lifted. If a person is physically unable to file the Financial Records due to the direct consequences of such person’s participation in hostilities, the deadline is further extended by 30 calendar days from the date the consequences precluding the submission of the Financial Records are eliminated.
- It is prohibited to conduct audits of the timeliness and completeness of the Financial Records, and the liability for the failure to file or late filing of the Financial Records during martial law is abolished.
- In the case of failure to pay taxes and levies, taxpayers are exempted from liability envisaged by Ukrainian tax legislation. They must pay taxes and levies within three months after martial law is lifted. If a taxpayer is physically unable to pay taxes and levies due to the direct consequences of such taxpayer’s participation in hostilities, the deadline is further extended by one month from the date the consequences precluding the payment of taxes and levies are eliminated.
- All current tax audits are suspended, no new audits are being started. Tax deadlines for both taxpayers and tax authorities have also been suspended.
- The amount of funds, the value of certain goods, works and services provided on a free-of-charge basis to the Ukrainian armed forces may be included in the taxpayer’s expenses in full.
Nationalisation of Russian assets in Ukraine
- The laws provide for the confiscation of assets located (registered) in Ukraine and owned directly or through affiliates by (i) the Russian Federation and (ii) companies registered in Ukraine in which the Russian Federation is a founder or beneficiary.
- The confiscation is carried out without any compensation. Movable and immovable property, funds, bank deposits, securities, corporate rights and other property may be subject to confiscation.
- The National Security and Defence Council of Ukraine adopts the decision on confiscation which is subsequently enacted by the decree of the President of Ukraine. Confiscated assets are transferred to a specialised state enterprise.
Involving civilians to resist aggression
- Civilians may obtain weapons, ammunition and participate in fighting back against the armed aggression. If they use weapons against persons engaged in the armed aggression against Ukraine, they are exempted from liability.
- Weapons and ammunition received must be handed over to the National Police of Ukraine within 10 days after martial law is lifted.
Increased criminal liability and functioning of courts
- Criminal liability for looting, treason, and sabotage has been increased.
- Criminal liability for collaboration has been established. Participation of collaborators in the electoral process is prohibited. Access to military service and state secrets is also restricted to collaborators. In addition, a political party, religious, charitable or social organisation may be dissolved if its representatives were found guilty of collaboration.
- Criminal liability has been established for justifying or denying the Russian aggression against Ukraine and glorification of its participants. The use of print media and TV and radio organisations for such purposes is prohibited. Additionally, a political party or public organisation may be liquidated if it justifies the Russian aggression.
- Criminal liability has been established for insulting the honour and dignity of a serviceman.
- A special regime of pre-trial investigation and extension of detention under martial law has been established.
- A court may suspend its operations after having determined another court to administer justice in the territory of the court whose operations were suspended.
Stay safe!
Glory to Ukraine!
