COVID-19 PANDEMIC IN UKRAINE
07/05/2020
A Brief Legal Guide
The Covid-19 pandemic has not only affected commercial companies throughout the world, but also these companies are currently forced to adjust their business models in order to minimize the damage caused by the pandemic.
Since March 12, 2020, Ukraine has been introducing the coronavirus quarantine measures inside the country. Those measures were initiated as of May 5, which are listed as follows:
1. General limitations:
- The government of Ukraine has extended the emergency regime until May 22, 2020,
- All public events (contains more than 10 people) are prohibited until 22 May, 2020,
- Receptions and offering customer services (except for grocery stores and pharmacies) are prohibited until May 22, 2020,
- The terms of applying for administrative and other types of services are suspended,
- Foreign citizens who are not able to return back to their home countries or who are not able to apply for an extension visa for their stay in Ukraine and / or to exchange a residence permit due to the quarantine, administrative liability will not be applied for the violation of the regulations only if such violation has occurred during the period of the quarantine,
- The entrance of foreign citizens to the territory of Ukraine is prohibited until May 22, 2020 (except having permanent and temporary residence permit),
- All of the civilian air traffic is prohibited until May 22, 2020,
- Parks, squares, recreation areas, hairdressers, beauty salons and outdoor dining areas of the restaurants will be open after May 11, 2020.
2. Business-related limitations:
- The measures taken for combatting Covid-19 pandemic is considered as a force majeure event,
- Employers may allow employees work from home or may provide leave during the quarantine,
- Tax audits and state inspections for the commercial activities until May 31, 2020, are prohibited,
- Most of the taxational violations come into existence between March 1, 2020 and May 31, 2020, will not be subject to administrative fine. Unified social contribution payers are also exempted from these fines including late payment penalties or late reporting, for the same period. Besides, no charges and payments for the land tax, as well as non-residential real estate tax will be applied.
Recent case-law and media news suggest that restrictions on economic activities are not always considered as legal actions; unreasonable excessive restrictions are often required, or there may be discriminatory prosecution of companies that are homogeneous in their activities.
This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.