News digest | March 2026

Litigation and Dispute Resolution practice

1. Validity of an arbitration clause following termination of the underlying contract: position of the Supreme Court

The Commercial Cassation Court within the Supreme Court, considered a debt recovery case in which the key issue was the validity of an arbitration clause following termination of the underlying contract.

In its judgment dated 12 February 2026 in case No. 911/2618/25, the Commercial Cassation Court within the Supreme Court concluded that an arbitration clause is autonomous and does not cease to be effective even where the contract itself has been terminated. Its validity does not depend on the fate of the underlying contract.

At the same time, when deciding whether to leave a claim without consideration, a state court is not entitled to examine the circumstances surrounding termination of the contract, but must confine itself to verifying the existence and validity of the arbitration agreement.

The Supreme Court also emphasised that the existence of an arbitration clause deprives a state court of jurisdiction to hear the dispute on the merits, provided that the relevant objection is raised by a party in due time.

This position prevents parties from avoiding arbitration by relying on termination of the contract and confirms the primacy of the arbitration agreement as a separate legal instrument. The сourt also applied the principle that any doubts should be resolved in favour of the validity of the arbitration agreement, reflecting a pro-arbitration approach. At the same time, the respondent’s objection must be raised no later than the submission of its first statement on the merits of the dispute.

2. Child support arrears during іuspension of an employment contract: new position of the Supreme Court

The Joint Chamber of the Civil Cassation Court within the Supreme Court has revised its approach to calculating child support arrears in cases where an employment contract has been suspended.

In its judgment dated 2 March 2026 in case No. 133/2281/24, the Supreme Court held that where a child support obligor received no income during a period of employment contract suspension, that person is to be treated as unemployed for the purposes of calculating arrears. In such circumstances, the amount of arrears is to be determined on the basis of the average wage applicable in the relevant locality.

In reaching this conclusion, the court departed from its previous approach, under which calculations were based on the notional wage the obligor could hypothetically have earned. Specifically, the court overruled the reasoning set out in case No. 489/3741/16-ts and case No. 237/2469/20.

The Supreme Court stressed that domestic legislation provides no special mechanism for calculating child support during a period of employment contract suspension, and does not permit the use of a “potential income” figure in place of actual income received.

Accordingly, the current position of the Supreme Court establishes a uniform approach to determining child support arrears where an employment contract is suspended: in the absence of actual income, the obligor is deemed to be unemployed, and arrears are calculated by reference to the average wage for the relevant locality. This precludes any reliance on “potential income” and ensures a more consistent and predictable application of the law. Notably, an employer is under no obligation to accrue or withhold child support arrears during the period of suspension.

3. One-time monetary benefit: jurisdiction in proceedings for the establishment of the fact of dependency –  position of the Grand Chamber of the Supreme Court

The Grand Chamber of the Supreme Court in its judgment dated 11 February 2026 in case No. 308/17634/23, resolved the question of jurisdiction in proceedings for the judicial establishment of the fact that a person was financially dependent upon a deceased servicemember, for the purpose of receiving a one-time monetary benefit. The court confirmed that such proceedings fall within the jurisdiction of the civil courts, irrespective of the ultimate purpose of obtaining the social benefit in question.

The Grand Chamber rejected the approach whereby such matters would be referred to the administrative courts, and held as follows:

•  The establishment of the fact of dependency is civil in nature, as it necessarily involves an examination of family and proprietary relations;
• The purpose of obtaining a benefit does not alter the character of the legal relationship at issue and has no bearing on the determination of jurisdiction;
•  The absence of information concerning dependants in a servicemember’s personal record documents does not constitute an impediment to the judicial establishment of such a fact by way of non-contentious proceedings, nor does it indicate the existence of a dispute as to a substantive right at that stage;
• State authorities in such proceedings hold the procedural status of interested parties rather than parties to a dispute concerning a substantive right. The Territorial Recruitment and Social Support Centre is responsible solely for the collection of documents, whilst the final decision on the award of the benefit rests with the Commission of the Ministry of Defence.

The court further emphasised that a judgment of a civil court establishing a legal fact is binding upon military administrative authorities when determining whether the relevant benefit is to be granted.

The Grand Chamber additionally stressed that administrative courts are not vested with the power to establish legal facts as a standalone subject matter of judicial review, whereas civil procedure expressly provides for such jurisdiction.

Accordingly, the Grand Chamber confirmed that the establishment of the fact of dependency falls within the civil jurisdiction and does not transform into a public law dispute merely by reason of a subsequent application for a State benefit.

4. Access to the Unified State Register of Court Decisions may be restricted: Draft Law No. 7033-d

The Verkhovna Rada of Ukraine is preparing Draft Law No. 7033-d for its second reading. The draft proposes significant amendments to the rules governing access to the Unified State Register of Court Decisions (USRCD).

The draft legislation marks a departure from the principle of maximum openness of judicial decisions and introduces restrictions on grounds of national security.

Key provisions of the draft law:

•  Restricted access, for the duration of martial law, to decisions in cases concerning crimes against national security, state secrets and war crimes;
• Deferred public access to rulings on searches, asset freezing orders and other investigative measures in criminal proceedings, which would become publicly available only one year after their entry into the Register;
• An expanded list of classified information, including the designations of military units, the addresses of strategically significant facilities and enterprises forming part of the defence industrial complex.

These amendments may have a considerable impact on the practice of lawyers and advocates insofar as they concern the monitoring of judicial precedent, as well as on businesses that rely on the USRCD to conduct due diligence on counterparties.

Draft Law No. 7033-d envisages a transition towards a more restricted regime of access to court decisions. Whilst this enhances the protection of sensitive information during the period of martial law, it simultaneously curtails transparency and public access to judicial practice.

5. Supreme Court defines the meaning of “close relatives” under the law of succession

The Joint Chamber of the Civil Cassation Court within the Supreme Court has revised its approach to defining the category of “close relatives” who are precluded from acting as witnesses at the execution of a will.

Under the previously prevailing approach, courts took the position that a blood uncle or aunt of a beneficiary automatically fell within that category, which could render a will void ab initio.

In its judgment dated 02 March 2026 in case No. 462/863/23, the Civil Cassation Court within the Supreme Court departed from that position. The court held that the notion of “close relatives” within the meaning of Article 1253 of the Civil Code of Ukraine encompasses solely parents, children, brothers and sisters. Accordingly, the participation of an uncle or aunt as a witness at the execution of a will is lawful and does not constitute a breach of the formal requirements applicable to wills.

The status of “family member” in respect of such relatives now requires affirmative proof of cohabitation, a shared domestic life, and the existence of mutual rights and obligations between the parties concerned.

The court further emphasised that the definitions of “close relatives” contained in the Law of Ukraine on the Prevention of Corruption or in other instruments of public law may not be applied by analogy to succession relations.

This position significantly reduces the risk of wills being rendered formally void and strengthens the protection of a testator’s final wishes.

6. Expanded list of critically important enterprises for the needs of the Armed Forces of Ukraine

Cabinet Resolution No. 334 of 16 March 2026, which entered into force on 17 March 2026, introduces amendments to the criteria for designating enterprises as critically important for the needs of the Armed Forces of Ukraine.

An enterprise may be granted critically important status where it performs contracts concluded with the commands of branches or separate arms of the Armed Forces of Ukraine in respect of the following activities:

•  Transportation of military cargo;
• Repair, maintenance and operation of weapons and armaments;
• Servicing of military and specialised equipment;
• Handling of ammunition and its components;
• Procurement of defence-related goods in support of the foregoing activities.

The amendments broaden the application of employee reservation mechanisms and ensure operational continuity for enterprises that effectively underpin the functioning of military infrastructure.

It will be recalled that in our November 2025 news digest we drew attention to Draft Law No. 13335, which at that time was still awaiting presidential signature. We highlighted at that juncture a key restriction: the reservation of employees with outstanding military registration violations would not extend to all critically important enterprises, but only to those of importance to the Armed Forces and the defence industrial complex. That draft law has since been enacted as Law No. 4630-IX, which entered into force on 4 December 2025, enshrining a mechanism for the limited 45-day reservation of such employees.

Cabinet Resolution No. 334 represents a logical continuation of that Law: it specifies which enterprises may obtain critically important status for the needs of the Armed Forces, adding concrete categories of activity – military cargo transportation, weapons repair, ammunition handling and related operations. This significantly enhances legal certainty for enterprises that were previously unable to demonstrate their “critical importance” and, accordingly, lacked access to the reservation mechanism.

7. Draft Labour Code of Ukraine unveiled: paid parental leave until a child reaches the age of eight

The Draft Labour Code of Ukraine proposes a comprehensive reform of labour legislation, introducing, in particular, a new model of parental leave. The central innovation is a paid parental leave entitlement of four months in duration, which may be taken at any point until a child reaches the age of eight. Each parent holds an individual entitlement of two months which is non-transferable to the other parent; the leave may be taken in instalments or concurrently by both parents.

Remuneration during such leave is to be provided through the mandatory state social insurance system. The existing right to unpaid parental leave of up to three years extendable to six years on medical grounds  is preserved in parallel.

It will be recalled that in December 2025 the Constitutional Court of Ukraine declared unconstitutional the three-month limitation period for an employee to bring a claim before a court for the recovery of outstanding wages (Judgment of the Constitutional Court of Ukraine No. 1-r/2025). The new Labour Code must establish an alternative limitation period, and the courts will consequently operate under a revised normative framework when adjudicating labour disputes. It is our view that the transitional period will give rise to a wave of disputes concerning the application of former and new limitation periods to legal relationships that arose prior to the entry into force of the Code.

For businesses, these changes present new challenges in the areas of workforce planning and human resources management, whilst for parents they offer a genuine opportunity to balance professional life with childcare responsibilities.

Corporate Law and M&A practice

1. Applications for state support of industrial parks in 2026 have been launched 

As part of the “Made in Ukraine” policy, the Government has launched the acceptance of applications for state support of industrial parks in 2026. Initiators and managing companies may submit applications through authorised banks until 15 August 2026.

State support is aimed at developing the industrial infrastructure of industrial parks and covering costs related to connection to engineering networks, including electricity supply. Funding is provided on a co-financing basis between the state and applicants, which provides for the attraction of private investment alongside budget funds.

The updated programme conditions provide enhanced support for territories affected by hostilities. In particular, for front-line and de-occupied regions, the share of state funding may reach up to 80% of costs, and compensation is also provided for the restoration of damaged infrastructure within an established limit – up to UAH 200 million per park.

The programme also establishes requirements for project implementation: applicants undertake to create industrial infrastructure within specified timeframes and to attract manufacturing enterprises to the industrial park. This approach is aimed at ensuring the actual launch of production, job creation, and the development of the processing industry.

2. An updated electronic apostille register with extended functionality has been introduced 

The Ministry of Justice of Ukraine has announced the launch of an updated electronic apostille register, which provides a new approach to the verification and processing of documents intended for use abroad. The updated functionality applies to apostilles issued after 1 March 2026.

The key change is the expansion of verification capabilities: through a specialised online resource, it is now possible not only to confirm the issuance of an apostille, but also to view the document on which it has been affixed, including its scanned copy.

Each apostille is provided in electronic form as a file with a qualified electronic signature in the international ASiC-E format, which can be downloaded and used when submitting documents abroad.

Separate mechanisms for rapid verification have also been introduced: apostilles contain unique QR codes that allow for quick verification of their authenticity, as well as data on the signature and seal of the issuing authority.

In addition, the register includes both new entries and an archive of previously issued apostilles, ensuring continuity of access to information and increasing the transparency of procedures.

News in Healthcare and Pharmaceuticals

1. The Government has updated the rules for the circulation of medicinal products during martial law 

The Cabinet of Ministers of Ukraine adopted Resolution No. 377, which introduces amendments to the regulation of the circulation of medicinal products during the period of martial law. The document provides for the extension of certain temporary mechanisms and clarifies the conditions for their application in order to ensure uninterrupted access to medicinal products.

One of the key decisions is the extension of the validity of marketing authorisations until 1 January 2028 for certain categories of products. This applies, in particular, to medicinal products procured by the authorised person in the healthcare sector, as well as to products registered under emergency or conditional procedures, including medicines for the treatment and prevention of COVID-19.

The Resolution also provides for temporary arrangements of the manufacturing of medicinal products. During the period of martial law, it is permitted to use components in production that were not included in the registration dossier at the time of manufacture. At the same time, applicants are required to make the relevant amendments to the dossier and, within the specified period, submit documents for the re-registration of products whose authorisations have been extended.

Certain provisions also concern the possibility of relocating the manufacturing of medicinal products. The Ministry of Health is authorised to approve production at the facilities of other licensed entities in cases of damage to or loss of access to primary manufacturing sites. Such relocation is permitted subject to confirmation that the changes do not affect the quality, safety, and efficacy of the medicinal product, as well as the obligation to further update the registration materials.

2. A law defining economic activity in the field of medical practice at the legislative level has entered into force 

Law No. 4690-IX has entered into force, introducing amendments to the Fundamentals of the Legislation of Ukraine on Health Care. The document, for the first time, establishes at the legislative level a definition of economic activity in the field of medical practice.

From now on, such activity is understood as healthcare activity subject to licensing under licensing legislation and carried out by healthcare institutions or individual entrepreneurs for the purpose of providing medical or rehabilitation care and medical services.

In effect, the legislator has formalised a concept that had previously been used at the level of subordinate legislation, which led to ambiguities in law enforcement, in particular in the area of licensing medical practice.

The final provisions establish an obligation for the Cabinet of Ministers of Ukraine to bring its regulatory acts into compliance with the new provisions within three months, as well as to ensure that similar changes are made at the level of central executive bodies.

3. The Government has allowed the submission of documents for the licensing of medical practice in electronic form 

The Cabinet of Ministers of Ukraine adopted Resolution No. 148, which introduces amendments to the Licensing Conditions for conducting economic activity in the field of medical practice. The document provides for the digitalisation of licensing procedures and the introduction of an electronic format of interaction with the licensing authority.

The key change is the possibility to submit documents for obtaining a licence, as well as to support licensing activities in electronic form. For this purpose, an electronic cabinet of the licence applicant and licensee is introduced, which is part of the licensing register in the field of medical practice.

Through such an online portal, businesses will be able to submit applications, notify changes to the submitted information, submit other documents required by the licensing conditions, and receive updates on the status of their applications.

At the same time, the Resolution defines the general conditions for the implementation of the new approach: it enters into force on 7 April 2026, but not earlier than the launch of the procedure for maintaining the relevant licensing register, which is to be approved by the Ministry of Health of Ukraine.

Thus, the Government is moving to an electronic format for licensing medical practice, which is expected to simplify administrative procedures, reduce the time required for interaction with public authorities, and lessen the burden on applicants.

Tax, Restructuring, Claims and Recoveries practice

1. Updates on rules for preparing source documents: the law has come into force 

In the February 2026 news digest, we previously wrote about the Law of Ukraine No. 4791-IX “On Amendments to Article 9 of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”, which provides for the possibility of issuing primary documents without specifying certain details (in particular, the surname and signature) on the part of the service recipient or lessee (tenant), provided that certain requirements are met.

On March 16, 2026, this law was signed by the President of Ukraine, and on April 01, 2026 it came into force.

Consequently, the updated accounting rules in this regard are now applicable.

2. Retention of the military levy after the end of martial law: draft law registered 

On March 30, 2026, draft law No. 15110 “On Amendments to Paragraph 161 of Subsection 10 of Section XX “Transitional Provisions” of the Tax Code of Ukraine Regarding the Сollection of the Military Levy” was registered in the Verkhovna Rada of Ukraine.

It proposes to extend the application of the temporary military levy rates, established for the period of martial law in Ukraine, for three years after its termination or repeal, namely: 

• for individuals – 5%;
• for sole proprietors in the 1st, 2nd and 4th groups of the single tax – 10% of the minimum wage as at the first day of the month (in 2026 – UAH 865);
• for taxpayers in the 3rd group of the single tax (sole proprietors and legal entities, excluding e-residents) – 1% of income.

It should be noted that the current version of the Tax Code of Ukraine provides for the application of the above-mentioned temporary rates until 31 December of the year in which martial law is terminated or repealed.

3. Changes proposed regarding reporting and taxation of income from digital platforms

On March 30, 2026, draft law No. 15112 “On Amendments to the Tax Code of Ukraine Regarding the Taxation of E-commerce Transactions with Value Added Tax” was registered in the Verkhovna Rada of Ukraine.

It proposes, in particular, the imposition of VAT on the import of goods into the customs territory of Ukraine by e-commerce enterprises and their intermediaries for recipients who are natural persons. It should be noted that there is currently a restriction on the taxation of such transactions – the total value of the goods must exceed €150.

Sellers involved in such supplies will not claim a tax credit in respect of the aforementioned transactions and will not issue tax invoices for them.

If, however, the electronic interface provider is a non-resident, the obligation to charge and pay the relevant tax will fall on the intermediary designated by that provider. 

The draft law also provides for tax exemption under these rules for transactions involving goods with a total value not exceeding the equivalent of €45, which are sent and received by individuals free of charge for non-commercial use.

4. Proposed changes regarding reporting and taxation of income from digital platforms

On March 30, 2026, draft law No. 15111 “On Amendments to the Tax Code of Ukraine and the Law of Ukraine “On Banks and Banking Activities” regarding the introduction of international automatic exchange of information on income received through digital platforms and the taxation of such income’ was registered in the Verkhovna Rada of Ukraine.

This draft law proposes, in particular, to introduce mandatory reporting and the international automatic exchange of data on income received online. 

The draft law also proposes to tax individuals’ income from activities via these platforms at a reduced personal income tax rate of 5%, and to designate the relevant digital platform operator as the tax agent for such individuals.

To qualify, an individual must meet the following criteria:

• they must conduct payments for such activities exclusively in cash using a separate bank account;
• is not a person subject to sanctions;
• is not a self-employed person;
• does not employ staff;
• their annual income does not exceed 834 amount of the minimum wage;
• does not sell excise goods.

In addition, income from such sales amounting to up to €2,000 per year will not be subject to taxation and will not require the opening of a separate bank account.

There have previously been legislative initiatives on this matter, which we have written about before. However, the draft law amending the Tax Code of Ukraine and the Law of Ukraine “On Banks and Banking Activities” regarding income from digital platforms was not adopted by parliament.

5. Ratification of the convention between Ukraine and Australia on taxation is planned

On March 19, 2026, draft law No. 0370 “On the ratification of the Convention between the Government of Ukraine and the Government of Australia for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance, and the Protocol thereto” was registered in the Verkhovna Rada of Ukraine.

In particular, the aforementioned international treaty, signed by Ukraine and Australia on October 16, 2025, establishes rules for the allocation of rights to tax income received by residents of one state from sources in the other.

The Convention and the Protocol thereto shall enter into force on the date of the last written notification through diplomatic channels that the parties have completed the necessary domestic procedures in each of these states.

6. Schedule of planned audits for 2026 has been updated

On March 26, 2026, the State Tax Service of Ukraine has published an updated schedule of documentary audits of taxpayers for 2026.

In particular, the document has been expanded to include a list of legal entities, permanent establishments and representative offices of non-residents subject to control measures by the tax authorities.

7. Taxation of non-residents’ income in Ukraine: general tax consultation

On March 20, 2026, Order No. 132 of the Ministry of Finance of Ukraine “On the Approval of the General Tax Consultation on the Issue Related to the Withholding of Tax on Non-Resident Income Derived from Ukraine” dated March 04, 2026 was published.

The subject of the study was the issue of determining the entity responsible for withholding and paying tax on non-resident income in cases where royalty payments under a licence agreement are made by a resident licensor not directly to the non-resident, but through an authorised agent who is a resident of Ukraine.

The Ministry of Finance of Ukraine concluded that in such a case, the obligation to withhold and pay tax lies with the taxpayer – the licensee – at the time of transferring funds to the account of the relevant agent, but only if such an agent is not a permanent establishment of the non-resident licensor.

Under these circumstances, the agent is not required to re-calculate and pay the tax once more.

8. VAT on transactions involving the use of computer software and digital content: general tax consultation

On March 12, 2026, Order No. 133 of the Ministry of Finance of Ukraine was published, “On the Approval of the General Tax Consultation on the Specifics of Value Added Tax on Transactions Related to Computer Programs and Digital Content”.

The conclusions of this General Tax Consultation are that supplies relating to computer programs or digital content as objects of intellectual property rights are, as a general rule, subject to VAT.

At the same time, transactions where payment is considered a royalty, as well as the granting by a resident to a non-resident of the right to use computer programs or digital content, are not subject to VAT.

Furthermore, the place of supply of services involving the provision of computer programs or digital content as objects of intellectual property rights is the place of registration (residence) of the recipient of the relevant services, and in the case of the direct supply of such objects with a transfer of ownership rights (exclusive property rights) – the place of registration (residence) of the purchaser.

9. Сhanges planned to the tax notification-decision form for individuals

On March 23, 2026, draft order of the Ministry of Finance of Ukraine “On Amendments to the Procedure for the Issuance of Tax Notification-Decisions by Supervisory Authorities to Taxpayers” was published.

It proposes supplementing the tax notification-decision in Form “F” with information on the outstanding amount of tax debt owed by the relevant individual.

10. Registration of a taxpayer card via Diya: changes to subordinate legislation planned

On March 18, 2026, draft order of the Ministry of Finance of Ukraine “On the Approval of Amendments to the Regulations on the Registration of Individuals in the State Register of Individual Taxpayers” was published. 

These amendments are proposed in connection with the entry into force of the Resolution of the Cabinet of Ministers of Ukraine regarding the possibility of registering a taxpayer card in electronic form via the Diya Portal, as we have previously reported.

With a view to bringing regulatory acts into line with the aforementioned resolution, it is proposed, in particular:

• to approve the form of the electronic taxpayer card;
• to establish the criteria for the validity of an electronic taxpayer card (including a printed version) – the presence of a unique electronic identifier (QR code);
• to enable the submission of applications for taxpayer registration/amendments to the register in electronic form using the Diya Portal mobile app or via the Administrative Service Centre.

11. Proposed amendments to the rent payment declaration form

On March 23, 2026, the State Tax Service of Ukraine on its website published draft order of the Ministry of Finance of Ukraine “On the Approval of Amendments to the Form of the Tax Return on Rent Payments”.

It proposes, in particular, to amend the form of the Tax Return on Rent Payments regarding calculations (annexes to the return) for the use of subsoil resources and the special use of forest resources, supplementing them with additional information.

In addition, it is proposed to approve the forms of new annexes to this tax return:

• “Codifier of types of special use of forest resources” (Annex 17) – defines codes for each type of special use of forest resources;
• “List of types of subsoil use for purposes not related to the extraction of minerals” (Annex 18) – defines codes for each type of subsoil use for purposes not related to the extraction of minerals.

12. Review of the Supreme Court’s case law on tax matters for February 2026 

On March, 19, 2026, the Supreme Court published the review of the current case law of the Administrative Court of Cassation within the Supreme Court for February 2026. 

It highlights the following legal positions in the tax sphere: 

• Determination of income from the sale of gifts as part of promotional campaigns: in its judgement dated February 03, 2026 in case No. 160/29144/24, the court examined the validity of the tax authority’s position that the use of promotional goods as part of incentive advertising campaigns “Gift with purchase” leads to an increase in financial results and is subject to VAT.

Given that the taxpayer’s use of these goods was included in the cost price of the main promotional products and was incorporated into their final price, the court concluded that such goods do not constitute an independent object of sale and do not generate separate income for the taxpayer.

• Specifics of issuing a licence for the retail sale of fuel: in its judgement dated February 03, 2026 in case No. 560/656/25, the court upheld the tax authority’s refusal to issue a licence for the retail sale of fuel to a taxpayer who, at the time the relevant decision was taken, had not provided the necessary documents regarding the commissioning of facilities that require such commissioning and are necessary for the operation of a petrol station.
• Application of the exemption from import duties and VAT on the import of personal protective equipment during the quarantine: in its judgement dated February 06, 2026 in case No. 560/16306/24, the court concluded that a notification from the State Labour Service regarding the placing into circulation of personal protective equipment that does not meet the requirements of technical regulations constitutes independent confirmation of the right to apply exemptions from import duties and VAT on such goods during the COVID-19 quarantine.
• Preferential rates of import duty and VAT: in its judgement dated February 11, 2026 in case No. 380/25552/24, the court noted that a letter from the competent authority of the exporting state regarding the non-preferential nature of the imported goods constitutes sufficient grounds for the customs authority to impose obligations for the payment of import duties and VAT at their full rates.