Business after quarantine: legal advice

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The COVID-19 pandemic in 2020 has significantly affected companies worldwide. Business owners have to quickly adjust their strategies, to develop anti-crisis plans and to prevent new risks that may appear in the future.

INTEGRITES offers comprehensive legal advice on various legal issues that have become a challenge for businesses in crisis:
labour law and immigration issues
force majeure and contracts
tax law:
tax holidays, fines and penalties, legislation updates
restrictions for economic activities during the quarantine
litigation:
latest legislation updates, domestic dispute resolution
other legal issues related to the impact of the pandemic on business
Quarantine-related measures introduced in Ukraine

General

The emergency situation has been declared on the entire territory of Ukraine until 31 August 2020

The quarantine is considered as force majeure

All public events for more than 10 people are prohibited until 31 August 2020

Operations of companies that normally accept customers (except those with direct permission) are prohibited until 31 August 2020

The terms for applying the administrative and other services, and the terms of their provision, are suspended

On 15 June 2020 Ukraine reopened air services (arrival and departure of aircrafts)

From 01 August till 31 August 2020, restrictive quarantine measures are applied depending on the level of spread of COVID-19 in the region or individual administrative-territorial unit



Taxes

The transactions on the import to the Ukrainian customs territory of the medicines and / or medical equipment for the prevention of coronavirus are exempted from value added tax until the last day of month in which the quarantine expires, from import duties until 30th June 2020, as well as the simplified procedure of public procurement applies to these goods until 17th June 2020

It is forbidden for the relevant state authorities to carry out the tax audits and state inspections of the commercial activity until the last day of the moth in which the quarantine expires. No penalties will apply to almost all tax violations committed between 1st March 2020 and the last day of the month in which the quarantine expires with certain exceptions (e.g. tax audits related to VAT refund)

For the period from 1 March 2020 till the last day of the month in which the quarantine expires the taxpayers are released from payment of fines and penalty for violation of tax legislation except for violations related to VAT, excise tax and rent tax and some other

Payers of unified social contribution are also released from fines and penalty for late payment of contribution and late filing of reporting for the period from 1 March 2020 till the last day of the month in which the quarantine expires

There is no charge and payment of the land tax, as well as tax for non-residential real estate from 1st March 2020 until 31th March 2020

Employment

An employer may allow an employee to perform work at home for a specified period, and may provide the employee with the vacation under his / her consent (including unpaid vacation) for the whole term of the quarantine

For the foreigners who may not travel abroad or may not apply to the relevant state authorities with an application to extend their stay in Ukraine and / or to exchange a residence permit due to the quarantine, no administrative liability is applied for the violation of the laws if such violation occurred within or as a result of the quarantine

Restrictions for economic activities during the quarantine

providing legal assessment on legitimacy of certain types of economic activities at the national and regional levels

defining the specific list of mandatory quarantine measures for certain types of economic activities depending on their location

assessing and challenging the sanctions imposed by the authorised bodies

optimizing the loan portfolios for business

optimizing terms and conditions of the contracts that include clients' property rights (rent, etc)

drafting manuals on interaction with the regulatory authorities

advising on other issues on compliance with the measures related to quarantine and emergency situation
Quarantine and measures related to the emergency situation in Ukraine have significantly changed the conditions for doing business. Companies have been given many additional obligations and compliance control has been quite strong. The authorized bodies have been increasingly active in filing administrative protocols for violation of the quarantine measures. According to the National Police, the number of such protocols exceeded 3,000 as of 31 March 2020.

However, restrictions imposed on business are not always legal. In many cases they appear unreasonably excessive, and the competition unduly restricted.

The new legal environment became the reason for growing demand on protecting business from over-regulations. Understanding this, we set up a team of lawyers with solid expertise in administrative law to advise clients on the following:
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Olena Perepelynska
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Force majeure and contracts \ dispute resolution
Illya Tkachuk
Work conditions \ remote work \ immigration matters \ other employment law issues
Viktoriya Fomenko
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Tax holidays and other quarantine-related novelties in tax law
Oleksandr Onishchenko
Litigation \ restrictions for economic activities during the quarantine \ domestic dispute resolution
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