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Aapitive quarantine in Ukraine has been extended until October 31. This decision was made by the Cabinet of Ministers yesterday, August 26. Health Minister Maxim Stepanov noted that the document provides for the strengthening of a number of restrictive measures.

Shmygal: "The increase in morbidity in recent weeks is forcing us to act more decisively. Today we will consider extending the quarantine for 2 months. Restrictions and zoning of areas by color will be valid at least until November 1. Until 31.10 we will extend the quarantine."

What changes are introduced by the new rules?

Quarantine in Ukraine is extended until October 31, 2020. Restrictive measures in the regions are also intensifying. This is due to the sharp increase in the number of cases of coronavirus disease. We need to understand that we are all in a new reality and it dictates new rules and the need to strictly adhere to security measures, "said the head of the Ministry of Health.

In particular, according to the Minister, in regions with a "green" level of epidemic danger will be prohibited discos, nightclubs, catering activities for leisure, as well as concerts (except for those held by cultural institutions, for which concert activities during last year is the main activity).

Maxim Stepanov also noted that the document gives local governments the right to access the data of the electronic service "Action at home" - for the current control of persons subject to self-isolation or observation, and persons who have violated the quarantine rules.

What are the consequences for business due to the extension of quarantine?

Due to the extension of adaptive quarantine until October 31 (inclusive):

1) Tax fines and penalties are not accrued. (With some exceptions)

exceptions:
- violation of the requirements for long-term life insurance contracts or insurance contracts within the framework of non-state pension provision, in particular, supplementary pension insurance;
- alienation of property that is in tax lien, without the consent of the supervisory authority;
- violation of the law in part:
accounting, production, storage and transportation of fuel, ethyl alcohol, alcoholic beverages and tobacco products;
targeted use of fuel, ethyl alcohol by taxpayers;
violation of accrual, declaration and payment of VAT, excise tax, rent.

2) There is a moratorium on tax audits (including the single social contribution)

exceptions:
- unscheduled documentary tax audits on the grounds specified in paragraphs. 78.1.8 TCU. These are documentary checks carried out to reimburse VAT;
- actual inspections for violation of the law in part:
accounting, licensing, production, use of storage and transportation of fuel, ethyl alcohol, alcoholic beverages and tobacco products;
implementation of functions defined by the legislation in the field of production and circulation of ethyl alcohol, alcoholic beverages and tobacco products, fuel, on the grounds specified in paragraphs. 80.2.2, 80.2.3 and 80.2.5 of the TCU.

2) There is a moratorium on tax audits (including the single social contribution)

3) Consideration of appeals to the tax authorities (complaints, inquiries, in particular, individual tax advice) is also postponed;

4) Employers can continue to idle; paid and unpaid leave for employees (but only at their request) by employees to work remotely.

But from September 1, despite the extension of quarantine, the State Labor Inspectorate will begin to de-shadow labor.

According to the State Traffic Police in the Zakarpattia region, from September 1, 2020, it is planned that the controlling bodies will begin inspection work to identify unregistered labor relations. Inspectors, in particular, will focus on agriculture and construction, trade, catering, hotel and restaurant business.
Taxpayers remind heads of enterprises, institutions, organizations of all forms of ownership and natural persons-entrepreneurs who use hired labor of their obligations to send a notice of hiring an employee to the tax inspectorate at the place of registration as payers of a single contribution to the mandatory state Social Insurance. Such notice must be sent at the beginning of the employee's employment contract.

You can learn about the peculiarities of the procedural terms and rent in our previous article https://mbls.com.ua/en/news/what-restrictions-are-set-for-the-duration-of-adaptive-quarantine-in-ukraine 

As for other issues related to the peculiarities of economic activity during the COVID-19 pandemic in Ukraine, you can consult our lawyers.

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