MEMORANDUM
TO: Subscribers
to the Chronicle of Recent Developments in Ukrainian Legislation
FROM: Russian-Ukrainian
Legal Group
DATE:
RE: Legislative
Alert: Letter of the State Tax Administration of Ukraine No. 15162/7/15-1317
dated
As we informed you in our
October Chronicle of Recent Developments in Ukrainian Legislation, the State
Tax Administration of Ukraine ("STAU"), in its Letter No. 15162/7/15-1317 dated
Please be reminded that,
according to the Letter, contribution of funds by a foreign investor in the
form of a direct investment (and acquisition of title to the authorized fund of
an enterprise or a portion thereof) is sufficient grounds for the investment to
be tax-exempt, even if the State registration thereof was not carried out.
It should be noted that the STAU
opinion is contrary to the rules set forth in the Commercial Code of Ukraine,
the Law of Ukraine "On the Foreign Investment Regime" and the
Resolution of the Cabinet of Ministers of Ukraine "On Approving the
Regulations on the Procedure for State Registration of Foreign
Investments", which stipulate that the State registration of a foreign
investment must be carried out within three business days after the investment
is actually made[1].
It is established in the
legislation that unregistered foreign investments do not enjoy the exemptions
and guarantees stipulated by Ukrainian legislation for foreign investors and
enterprises with foreign investments[2].
Therefore, despite the
aforementioned STAU opinion, under Ukrainian law, the State registration of
foreign investments remains a mandatory requirement.
[1] Commercial Code of Ukraine, Article 395, clause 1; Law of Ukraine "On the Foreign Investment Regime", Article 13, part one; clause 2 of the Regulations on the Procedure for State Registration of Foreign Investments, approved pursuant to Resolution No. 928 of the Cabinet of Ministers of Ukraine dated 7 August 1996.
[2] Commercial Code of Ukraine, Article 395, clause 3; Law of Ukraine "On the Foreign Investment Regime", Article 13, part two.