Tax and accounting insights for Ukraine
05.06.24
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What legislative changes does Ukrainian business ask for and does it get them? TOP-3 legislative initiatives

The Parliament has recently supported a number of legislative initiatives that would make life easier for Ukrainian businesses. These include faster land allocation for the installation of 4G mobile base stations, as well as a draft law aimed at improving the legislation governing state market surveillance and control of non-food products.

The next change that business insists on is fair mechanisms for booking employees. The option of finalizing the electronic booking system and introducing an automatic extension of all bookings for a month, after which it can be repeated, is currently being considered.

This was announced by Olena Shulyak, Chair of the Verkhovna Rada Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning, head of the Servant of the People party, who stressed that lawmakers will continue to cooperate with the business community, as Ukraine's economic capacity, which can be ensured by business, is a significant guarantee of its victory in the war with Russia.

In particular, according to the MP, on June 4, the Parliament supported the draft law No. 9549 on simplifying the procedure for allocating land plots for the development of digital infrastructure, which allows for much faster allocation of land plots for communications infrastructure.

"The same base stations of mobile operators that require 1-5 hectares of land are necessary to provide high-quality communication. However, their installation takes months due to land allocation. This not only slows down the development of modern 4G communications, but also puts a spoke in the wheel of restoring communications in the de-occupied territories," Olena Shulyak noted.

The parliamentarian pointed out that the draft law No. 9549 provides for a number of important changes for mobile market players. These include, in particular, the following:

Reduction of bureaucratic procedures: the time required to obtain construction permits will be significantly reduced;

Introduction of the right to a land easement: this will allow mobile operators to use land for equipment placement without purchasing it;

Clear delineation of construction sites: this will help to avoid confusion and speed up the process of network rollout.

The next law emphasized by the Ukrainian business community was the Law on State Market Supervision and Control of Non-Food Products. The corresponding draft law No. 5473-D was adopted by the Verkhovna Rada on May 9. According to Shulyak, it is intended to improve the legislation governing state market supervision and control of non-food products. In particular, it is aimed at defining the circumstances under which fines are imposed and transparency of the inspection process.

The adopted draft law provides for:

Determination of the circumstances under which the amount of the fine is set;

The right of market surveillance authorities and business entities to record the process of inspections by means of audio, photo and video equipment;

The right of market surveillance authorities to request primary documents only if the products are dangerous, risky or do not meet the established requirements;

Inspections that require laboratory analysis of quality will be carried out exclusively at the expense of the state;

Replacing the fine for products of inadequate quality that are not brought into compliance with the proper standards with the possibility of recycling.

"The largest association of Ukrainian business, the Ukrainian Business Council (UBC), strongly insisted on the adoption of both draft laws. We could not help but respond, as it is extremely difficult for domestic business to operate, provide jobs, and pay taxes in the context of war. Therefore, we, as lawmakers, have developed a solution that, I am convinced, will make life easier for entrepreneurs in this difficult time," Shulyak emphasized.

The parliamentarian added that a crucial legislative change that Ukrainian business is still counting on is the update of the employee booking system - the option of finalizing the electronic booking system and introducing the possibility of automatically extending all bookings for a month, after which it can be repeated, is currently being considered.

According to her, the issue of employee booking is one of the most pressing today. The problem is that the business community does not have a clear understanding of how it will work and, in general, for whom this option is available and for whom it is not. Therefore, it is important for companies to get a clear decision and adapt all their processes accordingly, which is simply impossible now due to uncertainty.

She noted that business associations have voiced several of the most common problematic issues regarding employee booking. First, the inability to book freelancers and gig specialists who work as residents of Diia.City. Secondly, uncertainty in the booking period, when it is unclear how to proceed after the 6-month booking period is over. For example, whether it is necessary to apply for re-booking, or to book from scratch, or whether employees will be considered eligible for mobilization.

The requirement to book no more than 50% of the total number of employees subject to military service also creates additional risks - many companies do not submit lists for booking because they fear that they will lose the other half of their employees. No less urgent is the timeline for reviewing reservation applications - companies can wait up to 5-6 months for a response from the Ministry of Defense. And the slightest mistake in the package of documents submitted for booking means that these documents will be returned without any explanation. Communication on this issue is not established at all, explained Olena Shulyak.

According to her, the introduction of electronic booking would solve a lot of issues - since employees who are already registered with the TCC and all their documents are prepared are booked, the booking process is essentially a bureaucracy that takes time for both the person who is booked and the Ministry. Documents from the TCC are reviewed manually, which means hundreds of pages and 1.5-2 months. And until the appropriate decision is ready, this time can be critical for business. Therefore, for most companies, electronic booking would be a serious support.

Political party "Servant of the People"

Buhgalter 911 notes that the content of the author's materials may not coincide with the policy and opinion of the editorial team. The authors of the published materials include not only representatives of the editorial team.

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