May 17, 2013

All countries try to monitor and control import-export flows that pass through their borders. While some European countries have significant experience in these activities, contemporary Ukraine is continually developing its customs control systems (and supporting legislation). Ukraine’s new Customs Code, which came into force on January 1, 2013, completely overhauled the prior legislation governing customs bonded warehouses.

May 16, 2013

The moratorium on alienation of Ukrainian farm land has long prevented meaningful foreign investment into the Ukrainian agricultural sector. To somehow obtain access to agricultural land, instead of outright ownership foreign investors had to register Ukrainian companies that entered into lease agreements with landowners, most with a “right to buy” option if and when the moratorium will be lifted. However, if the current amendments to the legislation will be approved, the lifting of moratorium will not allow any legal entities to purchase their leased land despite any provisions to the contrary in their lease agreements. To add insult to injury, the suggested taxes and other mandatory payments to the state, will decrease any profits generated from the leased land.

February 4, 2013

Many unfortunate companies have experienced an inspection by the Ukrainian tax authorities, and most of them did not know what to expect, their legal rights, or the possible results. In fact, the imposition of penalties or the sudden non-recognition of VAT credit by the tax inspection often has no legal grounds. Nevertheless, once the tax inspection has made its decision, the taxpayer will receive a corresponding notice-decision concerning an outstanding tax amount with penalties or a decrease of VAT credit. So what does a company do now?

Read pdf.

September 1, 2012

Ukrainian legislation governing debt financing is constantly evolving.  Most recent amendments, dated June 15, 2012, further liberalize transactions involving extension of loans by foreign creditors to Ukrainian residents in foreign currency.  Our senior partner, Scott Brown, describes the new procedure for obtaining such loans in his recent article.