Which regulatory documents came into effect on January 1, 2016


On the first of January, dozens of legal regulatory documents will take effect. First of all, it is the Law on state budget, amendments to the Tax Code and the agreement with the EU on free trade zone. Also some innovations in the state registration of business and property shall come into force, the duties on imports of electric vehicles, the additional import fee are canceled, a ban on the import of vehicles older than five years is introduced.

- Law «On the State Budget of Ukraine for 2016».

In 2016, the state budget revenues are fixed in the amount of UAH 595.1 billion; expenses in the amount of 684 billion UAH. Total cost of living per person per month: from January 1, 2016 — UAH 1330, from May, 1 — UAH 1399, from December, 1 — UAH 1496. Minimum monthly wage from January, 1 — UAH 1378, from May, 1 — UAH 1450, from December, 1 — UAH 1550. Average annual hryvnia exchange rate is forecasted as UAH 24.1 per dollar.

- Law on amendments to Tax code.

Tax reform has been developed by the government — significant amendments to the Tax Code and some legislative acts have been introduced. As to VAT — improvement of the procedure of reimbursement from budget, two types of registers, etc. Simplified taxation — reduction of annual income from 20 to 5 million UAH for the 3rd group of payers; increases of rate for taxpayers of the 3rd group etc. PIT — establishment of a single base rate of 18% (instead of two valid rates of 15% and 20%); for the dividend, the rate remains of 5%. UST — establishment of a single rate of 22%. Changes in excise tax, agricultural companies taxation, withholding tax, real estate, transport and other taxes.

- New version of the Law on state registration of real estate titles and encumbrances — under the Law dd. 26.11.2015 № 834-VIII.

The simplification of the procedures of real estate state registration. The transfer of authorities has started, the transition period is set till April 30. The subjects of registration will be executive committees of local councils, municipal and district state administrations, state registrars (including notaries), accredited entities (entities of public law, which staff has at least 3 state registrars). The title can be registered with any state registrar within the region, and with a notary — within the whole country. It will be possible to register the ownership title on the unfinished construction, unclaimed shares. The cost of registration increases, also a shorter period of registration and payment for such accelerated registration (in minimum wages) are stipulated in the legislation.

- New version of the Law on state registration of legal entities and individual businessmen — under the Law dd. 26.11.2015 № 835-VIII.

The simplification of the procedures of business state registration. The transfer of authorities has started, the transition period is set till April 30. The authorities of administrative services in the field of state registration of legal entities and individual businessmen shall be transferred to local governments, local state administrations, notaries and accredited subjects of administrative services. The transition period is set till April 30. The justice authorities keeps the state registration of public organizations. The changes are aimed at reforming the registration, efficiency, minimization of the number of documents and procedures. Also the Law of 26.11.2015 № 836-VIII on Amendments to the Budget Code regarding crediting certain administrative fees shall come into effect.

- Law dd. 05.11.2015 № 761-VIII «On External Labor Migration».

Legal and organizational basis of state regulation of external labor migration and social protection of Ukrainian citizens, who have temporarily worked abroad, has been established. The rights of migrant workers on appropriate working conditions, social protection and family reunification have been defined. The state is obliged to assist in the reintegration of migrant workers and their families into the society upon their return to Ukraine by providing social services. State control and responsibility for the violation of the labor migration legislation requirements have been stipulated.

- Law dd. 05.06.2014 № 1314-VII on metrology and metrological activity.

The distinction of regulatory, supervisory and economic functions in the field of metrology is provided. State Metrology Inspection is founded. Administrative liability is introduced for violation of terms and conditions of verification of measuring instruments and measurements. It is provided to extend the application of accreditation mechanisms. Related Law № 1315-VII dd. 06.05.2014 «On Standardization» in its main part shall come into force on January 4, 2015 — the establishment and functioning of unified national standardization body are provided.

- Law dd. 25.11.2015 № 822-VIII on amendments to the Law of Customs tariff of Ukraine concerning import duty for electric vehicles.

The benefits for the import of electric vehicles in Ukraine have been established. Zero rate of import duty on vehicles equipped with electric motors only (one or more) is established. The prerequisites for reducing the price on electric vehicles and increase of their share in the Ukrainian car market are created.

- The effect of some provisions of the 01.07.2015 № 569-VIII on use of settlement transactions registration is terminated

It is prohibited to use STR, which do not transmit the control tape in digital form. Starting from the new year, the transitional period for the revision or replacement of existing cash equipment which provides the digital copies of settlement documents and fiscal reporting receipts by electronic communication channels, comes to an end. The liability in the amount of 10 non-taxable minimum incomes of citizens is provided, if control tape is not printed or not created in electronic form on STR, or corruption of data is found in the settlement transactions for which information is available on the control tape in digital form.

- Law on measures to stimulate foreign trade. Additional import duty is cancelled on January 1, 2016.

The Law on measures to stabilize the payment balance of Ukraine, which temporarily introduced an additional import tax of 5% and 10% was abrogated,.

- Law dd. 08.10.2015 № 732-VIII of the amendments to Article 87 of the Budget Code.

The prerequisites for the implementation of state financing of political parties have been created. The costs from the state budget will include the costs of the public funding of political parties statutory activity not related to their participation in the elections, as well as reimbursement of the parties costs on pre-election campaigning during ordinary and extraordinary elections of people’s deputies. Subparagraph 4, paragraph 3 section I of the Law dd. 08.10.2015 № 731-VIII. Political parties are required to provide to audit firm the reports on property, income, expenses and financial liabilities.

- Law dd. 20.10.2014 № 1709-VII on amendments to some legislative acts on some issues of inheritance.

The law permitted registration of inheritance in the rural councils. The simplified procedure for registration of inheritance and registration of the heirs rights to immovable property inherited by them (especially in rural settlements) through the provision of appropriate powers to local authorities. Mandatory assessment of property in case of inheritance by the heirs of the first and second stage by law and the representation right, as well as in the case of the inherited property taxed at a zero tax rate, is cancelled

- Law dd. 24.11.2015 № 812-VIII on amendments to Tax code concerning the prerequisites for new model of natural gas market.

The procedure for VAT taxation of the transactions for the supply of services of transportation and distribution of natural gas and the conditions for calculating the actual sales price of natural gas in case of payment of rent for the use of subsoil for mining is changed. On or before July 1, 2017, a cash-basis method for determination of tax liabilities and VAT tax credit for the supply operations (including wholesale), transfer, distribution of electric and/or thermal energy, coal and/or its washing products supply and the features of the tax accounting for such operations is introduced. On or before July 1, 2017, the supply operations of coal and/or its washing products in the customs territory of Ukraine of product articles 2701; 2702; 2703; 2704 according to the UKT FEA are VAT exempt.

- Law dd. 15.07.2015 № 614-VIII on amendments to some laws of pension coverage.

Military pensioners will be reimbursed the amount of the pensions due to them. It is established that the pensions shall be recalculated based on the changes in at least one type of monetary allowance for servicemen, persons eligible to a pension under the Law on pension coverage of the retired servicemen, or in connection with the introduction of new monthly allowances for these categories of persons (bonuses, promotions) and premiums, which are not paid through the fault of the PFU authorities or government agencies issuing the certificates for recalculation of pensions shall be from the eligibility date without time limits. It is specified the norm of the Law on Mandatory Pension Insurance requirements regarding retirement age and the availability of work experience when the pensions are attributed on favorable terms or for seniority.

- Law dd. 12.11.2015 № 802-VIII on specification of taxation subject for the taxpayers, having elected the simplified taxation system.

Some benefits shall return to agricultural producers. Agricultural producers attributed to the fourth group of single tax payers are exempt from reimbursement for the costs of payment and delivery of preferential pensions. Such producers shall receive those benefits which they enjoyed before 01.01.2015 as the payers of the fixed agricultural tax.

- Law dd. 02.06.2015 № 495-VIII on amendment to the article 18 of the Law of state assistance to the persons disabled from the childhood and handicapped children.

A monthly additional allowance is fixed for the persons disabled from the childhood of the subgroup A group 1. If a monthly state social assistance with premium for care of the persons disabled from the childhood of the subgroup A group 1 does not reach the state social assistance amount with premium for care paid to disabled children of subgroup A group 1 and between the age of 6 and 18 years old, monthly supplement shall be in the amount which is insufficient to reach the specified amount.

- The import of the cars not complying with Euro-5 mandatory in Europe since 2009 is prohibited

Stricter requirements for ecological parameters of vehicles imported to Ukraine have been established in accordance with the Law "On Amendments to the Law of Ukraine "On some issues of import to the customs territory of Ukraine and registration of vehicles «relatively wheeled vehicles» № 5177 dd. 2012. This means that the prohibition applies to the cars manufactured before

- Agreement on free trade zone between Ukraine and the EU (Economic part of the Association Agreement).

Ukraine and the EU form a free trade zone. The liberalization of Ukraine’s trade with the EU with products/services, gradual integration of the Ukrainian economy into the EU internal market. The EU will change its tariff plan (to reduce or eliminate taxes), Ukraine has 10 years of transition period, during which it is required to change its tariff plan. For the most sensitive products traded between Ukraine and the EU, tariff quotas are set. European technical standards for 27 product categories are introduced. Optimization of the customs services, simplification of customs procedures. In this regard, the Russian Federation introduces grocery embargo against Ukrainian products.