On 15 May 2024, Law of Ukraine No. 3677-IX “On Amendments to the Labor Code of Ukraine on Labor Relations in the Course of Transfer of a Business Entity” dated 25 April 2024 came into force, regulating succession in labor relations in the event of a change of company ownership, among others.
On 1 January 2022, the CFC rules became effective in Ukraine. For the novelty of the concept and the imperfections of the underlying legislation, many provisions of the applicable CFC rules call for clarification, elaboration, or further guidance.
In this context, on 2 May 2023, the Parliament of Ukraine passed – in the first (of typically two) readings – Bill No. 8137 “On Amendments to the Tax Code of Ukraine with respect to Enhancement of the Taxation of Controlled Foreign Companies” (“Amending Bill”), aimed at addressing most pressing issues pertaining to the application and interpretation of the CFC rules.
On 18 May 2024 (with certain exceptions), Law of Ukraine No. 3633-IX “On Amendments to Certain Legislative Acts of Ukraine on Certain Issues of Military Service, Mobilization and Military Registration” dated 11 April 2024 will come into force. This Law, among others, imposes certain new obligations for employers and their employees who are subject to mobilization.
We’re pleased to present the 14th edition of Ukrainian Laws in Wartime: Guide for International and Domestic Businesses, a brief overview of the key features of wartime legislation. In this edition you’ll explore pertinent responses to the most common questions currently examined and addressed by international and Ukrainian businesses.
In Ukraine, employee job titles should be named exclusively in accordance with the national classifier DK 003:2010 “Classifier of Professions”. The Order of the Ministry of Economy of Ukraine No. 1410 dated 16 January 2024 approved amendments to this Classifier, which complement the list of professions in accordance with the current demands of employers operating in international markets.
On 19 September 2023, the Cabinet of Ministers of Ukraine and the National Bank of Ukraine adopted Regulation No. 1011, introducing a comprehensive methodology to identify the ultimate beneficial owners (UBOs) of legal entities in Ukraine. This significant development aims to enhance transparency and provide detailed guidance on the process of identifying UBOs, with the ultimate goal of ensuring that legal entities in Ukraine are able to correctly identify UBOs within their ownership structure and disclose this information to the competent authorities.
Effective from 2 October 2023, Ukraine has ushered in a series of substantial amendments to its Advertising Law, aimed at modernizing advertising regulations and harmonizing them with the EU Audiovisual Media Services Directive.
On 12 September 2023, the President of Ukraine signed Law No. 5431 “On Amendments to Certain Legislative Acts of Ukraine to Improve the Activities of the Antimonopoly Committee of Ukraine” (“Law”), which launched a reform of Ukrainian competition law. The Law will enter into force on 1 January 2024.
The Law was developed together with competition law experts from the EU in line with the European Union-Ukraine Association Agreement. Adopting and implementing the Law is the first stage of the competition law reform, aimed at strengthening the powers of the Antimonopoly Committee of Ukraine (AMC) and bringing Ukrainian competition law and the AMC’s activities closer to the legal system of the European Union.
Baker McKenzie’s Sanctions Blog published the alert titled Ukraine Launches State Sanctions Register on 17 August 2023. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
With effect from 16 May 2023, Ukrainian borrowers are allowed to make payments from Ukraine abroad to repay and service certain cross-border loans from foreign lenders. The exempt payments should not be made prior to the payment date stipulated in the relevant loan agreement. The National Bank of Ukraine has expressly prohibited any amendments to the existing loan agreements that would shorten the payment terms thereunder.