All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

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 UN may be set to assume a global role in tax policy that would rival the OECD, while automakers lobby the US to change its tax rules on Chinese materials.
Companies including Valentino and EveryMatrix say the early adoption of EU public CbCR rules could boost transparency of local and foreign MNEs, despite the short notice.
ITR invites tax firms, in-house teams, and tax professionals to make submissions for the 2023 ITR Tax Awards in Asia-Pacific, Europe Middle East & Africa, and the Americas.
Tax authorities and customs are failing multinationals by creating uncertainty with contradictory assessment and guidance, say in-house tax directors.
The CJEU said the General Court erred in law when it ruled that both companies benefitted from Italian state aid.
An OECD report reveals multinationals have continued to shift profits to low-tax jurisdictions, reinforcing the case for strong multilateral action in response.
The UK government announced plans to increase taxes on oil and gas profits, while the Irish government considers its next move on tax reform.
War and COVID have highlighted companies’ unpreparedness to deal with sudden geo-political changes, say TP specialists.
A source who has seen the draft law said it brings clarity on intangibles and other areas of TP including tax planning.
Tax consultants say companies must not ignore financial transactions in their TP policies as authorities, particularly in the UK, become more demanding.