Ukraine: Ukraine tightens currency control rules
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Ukraine: Ukraine tightens currency control rules

kotenko.jpg

kalyta.jpg

Vladimir Kotenko


Iryna Kalyta

In late August, the National Bank of Ukraine tightened currency controls, trying to keep the volatile Ukrainian Hryvnia afloat.

  • Cross-border offsets prohibited: On August 29 2014, the National Bank of Ukraine prohibited cross-border offsets until further notice. Offsets were restricted in practice since December 2013.

  • Mandatory sales of currency proceeds: 100% of foreign currency proceeds will be subject to mandatory conversion into local currency (as compared to 50%). This restriction is supposed to be in place temporarily, until November 21 2014.

  • 90-day rule extended: National bank extended the rule obliging Ukrainian companies to collect export proceeds and receive prepaid goods, works, and services within 90 days (instead of the regular 180 days). This rule is extended until November 21, but further extensions are expected.

The Ukrainian government is also rumoured to be considering increasing the pension fund levy on purchase of foreign currency for individuals to 2% (as compared to 0.5% currently payable).

Vladimir Kotenko (vladimir.kotenko@ua.ey.com), Iryna Kalyta (iryna.kalyta@ua.ey.com)

EY

Tel: +380 44 490 3000; +380 44 490 3030

Website: www.ey.com/ua

more across site & bottom lb ros

More from across our site

The reported warning follows EY accumulating extra debt to deal with the costs of its failed Project Everest
Law firms that pay close attention to their client relationships are more likely to win repeat work, according to a survey of nearly 29,000 in-house counsel
Paul Griggs, the firm’s inbound US senior partner, will reverse a move by the incumbent leader; in other news, RSM has announced its new CEO
The EMEA research period is open until May 31
Luis Coronado suggests companies should embrace technology to assist with TP data reporting, as the ‘big four’ firm unveils a TP survey of over 1,000 professionals
The proposed matrix will help revenue officers track intra-company transactions from multinationals
The full list of finalists has been revealed and the winners will be presented on June 20 at the Metropolitan Club in New York
The ‘big four’ firm has threatened to legally pursue those behind the letter, which has been circulating on social media
The guidelines have been established in the wake of multiple tax scandals and controversies that have rocked the accounting profession
KPMG Netherlands’ former head of assurance also received a permanent bar and $150,000 fine; in other news, asset management firm BlackRock lost a $13.5bn UK tax appeal
Gift this article