- Simplified Taxation System for Family Farm
- Control over Manufacturing of Organic Products to Be Enhanced
- Verkhovna Rada of Ukraine Improved the Rules for Land Use in the Agricultural Land Area
- Requirements to the Squeeze-Out Intention Notice Established
- Discount Rate of the National Bank of Ukraine Increased
Legal news for your attention:
Simplified Taxation System for Family Farm
On 10 July 2018, the Verkhovna Rada of Ukraine adopted the Law “On Amendments to the Tax Code of Ukraine and Certain Legislative Acts of Ukraine Regarding Encouragement of Establishment and Operation of Family Farms”, which provides for the opportunity of the village residents who have established the farm, including a family one, to pay the fourth-group fixed tax subject to meeting the following criteria in aggregate:
- operating only within the farm registered in accordance with the Law “On Farming”:
- only growing and feeding agricultural products, harvesting, yielding, processing such own-grown or –fed products, and selling such products;
- carrying out business activity (except for supply) at their tax residence address;
- not hiring personnel;
- members of the individual’s farm being only his/her family members in the meaning of Part 2 of Article 3 of the Family Code of Ukraine;
- the area of agricultural land and/or water resources land owned and/or used by the members of the farm being 2 to 20 hectares.
Unified social tax benefits are also envisaged to be introduced for all members of the farm, including the head.
Currently, the Law has been submitted to the President to be signed and will enter into force on the day following the day of publication.
Control over Manufacturing of Organic Products to Be Enhanced
On 10 July 2018, the Verkhovna Rada of Ukraine adopted the Law “On the Fundamentals of and Requirements to Organic Manufacturing, Circulation and Labelling of Organic Products”, which will enter into force on the day following the day of publication and be brought into effect in a year upon its entry into force.
The Law establishes requirements to manufacturing, labelling and circulation of organic products and provides for the basic principles of certification of organic manufacturing, broken down by industries (organic crop farming, livestock breeding, mushroom farming, aquaculture, manufacturing of feed, food products and seaweeds). In particular, it is prescribed that the product may only be labelled as organic if it has been manufactured in accordance with the laws on organic manufacturing, circulation and labelling of organic products and contains at least 95 % of organic agricultural ingredients and up to 5 % of non-organic ingredients.
Advertising of any non-organic product as an organic one, including use of the inscription “organic product” in brands and trademarks, will be considered unfair advertising.
Verkhovna Rada of Ukraine Improved the Rules for Land Use in the Agricultural Land Area
On 10 July 2018, the Verkhovna Rada of Ukraine also adopted the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding Resolution of the Issue of Collective Ownership of Land, Improvement of Rules for Land Use in the Agricultural Land Area, Prevention of Illegal Takeovers and Support of Irrigation in Ukraine”, which will enter into force on the day of publication thereof.
This Law allows the land user using a considerable part of lands in the area to lease the land under field roads. In this case, it shall acquire land servitudes for access to other lands in the area. Lessees have been given the right to sublease land to the lessee of another land plot in the same area without the lessor’s consent provided that they remain liable for performance of the agreement. In its turn, the land user using 75 % of the overall area may take on lease (sub-lease) other land plots in the area provided that it furnishes their owners (lessees) equivalent land plots in the same land area.
Requirements to the Squeeze-Out Intention Notice Established
The National Securities and Stock Market Commission has established requirements to the notice of the intention to exercise the rights provided for by Article 65-2 of the Law “On Joint-Stock Companies”.
Thus, the company shall, within 25 business days upon receipt of the notice of the intention to redeem minority shareholders’ shares (squeeze-out), approve the market value of the company’s shares and notify thereof the person intending to exercise the said rights. The person holding the dominating majority interest may send the company a public irrevocable request for purchase of shares from all owners of the company’s shareholders within 90 days upon the notice of the intention to exercise the rights.
Respective resolution of the National Securities and Stock Market Commission No. 322 dated 15 May 2018 entered into force on 7 July 2018.
Discount Rate of the National Bank of Ukraine Increased
Pursuant to resolution of the Board of the National Bank of Ukraine “On Discount Rate Amount” No. 433-рш dated 12 July 2018, the discount rate is increased up to 17.5 % per annum starting from 13 July 2018.