April 15 – 19, 2024. Specifics of regulation and supervision in the market of non-bank financial services during martial law have been clarified

The President of Ukraine by decree No. 234 put into effect the decision of the National Security and Defense Council to counteract the negative consequences of gambling on the Internet.

The NSDC instructed the Cabinet of Ministers to:

• develop a procedure for restricting all forms of gambling advertising using the symbols of the Armed Forces and other military formations;
• prohibit the registration of multiple accounts for one player, as well as determine the time limit in the game per week;
• oblige the organizer of gambling games to set a limit for the player before the start of the game with the possibility of changing such a limit no more than once a month;
• implement a state system of online monitoring;
• conduct a national information and clarification campaign on the dangers of gambling, blocking of illegal sites where access to gambling is provided.

The Commander-in-Chief of the Armed Forces and heads of military formations during martial law must implement a ban on access to online casinos for the military.

The Security Service of Ukraine must conduct inspections of gambling organizers within two months. Within two months, the National Bank must approve recommendations to banks on blocking payments by citizens with credit funds to the accounts of organizers of gambling games for participation in gambling.

The Ministry of Digital Transformation, in accordance with the presidential decree, will hold negotiations with Apple and Google within a month regarding the prohibition of placing gambling apps without a corresponding license in their app stores.

The Ministry of Health was obliged to develop a clinical protocol for the treatment of gaming addiction within three months.

The State Tax Service of Ukraine focuses the attention of controllers of controlled foreign companies (hereinafter – CFC) on the need to display complete information in reports on CIC.

Order No. 254 of August 25, 2022 of the Ministry of Finance approved the form of the Report on controlled foreign companies, the form of the brief Report on controlled foreign companies (hereinafter – the Report on CFC ), the procedure for filling out the Report on CFC, the brief form of the Report on CFC and submission to the supervisory body.

Item 39 ^2.5 of the Tax Code establishes the requirements for the preparation and submission of the Report on CFC, in particular, it is determined that the Report on CFC is submitted to the supervisory body simultaneously with the submission of the annual declaration on property status and income or the tax declaration on the income tax of enterprises for the relevant calendar year by means of electronic communication in electronic form in compliance with the requirements of the laws of Ukraine "On Electronic Documents and Electronic Document Management" and "On Electronic Identification and Electronic Trust Services".

In the Taxpayer's Electronic Cabinet, there is the Report on CFC with the form identifier: J0108701 – for legal entities and F0108701 – for individuals.

Paragraph 39².5.3 of the Tax Code defines the list of information that must be noted in the Report on CFC.

At the same time, the norms of paragraph 39².4 of the Tax Code provide for a list of conditions, in case of compliance with which the adjusted profit of the CFC is not included in the tax base of the controlling entity.

At the same time, according to subsection 39².4.3 of the Tax Code, if the profit of the CFC is exempt from taxation in accordance with the provisions of this clause, the controlling person is released from the obligation to calculate the adjusted profit of the CFC.

Please note that the Tax Code does not establish separate rules or exceptions for the taxpayer - the controlling person regarding the non-display in the Report on CFC of the information specified, in particular, by paragraphs "h", "i", "j", "k" of sub-item 39².5.3 of the Tax Code, and therefore, such information is subject to display in the relevant columns of the Report on CFC (columns 29 – 34).

Thus, in the case of exemption from taxation of the income of the CFC in accordance with the requirements of clause 39².4 of the Tax Code, there are no legal grounds for not displaying in the Report on the CFC the information specified in subparagraphs "h", "i", "j", "k" of sub-item 39².5.3 of the Tax Code.

At the same time, the responsibility for violation of the requirements of the Code regarding non-display of information in the Report on CFC is determined by item 120.7 of the Tax Code.

Separately, we note that Article 50 of the Tax Code gives the controlling person the right to submit a new or clarifying Report on CFC.

National Bank of Ukraine by Resolution No. 43 of April 10, 2024 updated a number of norms regarding the regulation and supervision during martial law of the activities of non-bank financial services market participants, non-bank financial groups, payment market participants, collection companies and legal entities that have received a license to provide collection services to banks.

The corresponding changes to Resolution of the NBU Board No. 39 of March 6, 2022 are due to the update of the legal framework of the National Bank in accordance with the new financial laws and relate to:

• circles of persons to whom the requirements of the resolution apply;
• conditions for exemption from submission of documents / information within the framework of procedures for licensing and registration of financial service providers, which were established by normative legal acts that have already lost their validity;
• terms of consideration of documents under martial law;
• application of influence measures, etc.

The changes also determined that during martial law, specifics regarding:

• application of the algorithm for taking into account large losses under property insurance contracts when calculating the size of the solvency capital established in the Regulation on establishing requirements for ensuring the solvency and investment activity of the insurer ;
• the actions of the temporary administrator during the performance of duties, powers and/or functions specified in the Regulation on the procedure for the appointment, implementation and termination of the temporary administration of an insurer, credit union, in the event of a threat to life and health, in particular due to armed aggression of the Russian Federation ;
• the procedures for conducting an inspection established by the Regulation on the Organization and Conduct of Inspection Checks on the Markets of Non-Banking Financial Services, as part of the procedure in case of refusal to conduct such a check in a remote format.

In addition, the peculiarities of the application of the requirements of a number of provisions of the National Bank during martial law have been regulated, in particular:

• Regulations on the authorization of financial service providers and the conditions for their activities in the provision of financial services ;
• Provisions on the application by the National Bank of Ukraine of corrective measures, early intervention measures, influence measures in the sphere of state regulation of activities in the markets of non-banking financial services ;
• Regulations on the procedure for regulating the activity of credit unions in Ukraine ;
• Regulations on requirements for the ownership structure of financial service providers .

The National Bank of Ukraine has developed and approved the form of the regulator's written notification on the appointment of an audit entity that will provide services for the mandatory audit of the insurer's financial statements (hereinafter – Notification).

Pursuant to item 743 of Chapter 66, Section X of the Regulation on the Authorization of Financial Service Providers and the Conditions for Performance of Financial Services Activities, approved by Resolution No. 199 of the NBU Board of December 29, 2023, insurers submit to the National Bank a completed Notification on the appointment of an audit activity subject , which will provide services for a mandatory audit of the insurer's financial statements.

Explanations on its completion are attached to the published Notification form.

The corresponding form of the Notification can be seen at the link.

The Cabinet of Ministers of Ukraine has simplified obtaining the status of a person with a disability as a result of the war and a family member of a deceased defender. The initiative of the Ministry of Veterans Affairs regarding the simplified procedure for submitting and establishing statuses for persons with disabilities as a result of the war and family members of fallen servicemen and women was approved .

After the full-scale invasion of the Russian Federation into the territory of Ukraine, this process was complicated, in some cases the acquisition of status took up to eight months or more. As a result, persons with disabilities and the families of the victims had limited access to benefits and services guaranteed by the state.

From now on, the status can be obtained within 30 days in two ways:

• in paper form - through the Centers for Administrative Services Provision, regardless of the registered place of residence.
• in electronic form - through the e-cabinet of the Diia portal or the unified state register of war veterans (currently an electronic product is under development).

In addition to the application indicating the information necessary for granting the status, in fact nothing else is required. The collection of missing documents is not the responsibility of the veteran or the families of the deceased, but of the competent authorities. They are given the right to demand a complete package of documents from authorized bodies or officials.

The electronic form for submitting an application for establishing statuses is still being finalized by the Ministry of Veterans together with the Ministry of Digital Transformation. The technical possibility of obtaining statuses "in one click" will appear in the near future.

At the first stage, the e-application will be available for servicemen of the security and defense sector (Armed Forces, National Guard, State Border Guard Service, National Police, Security Service, Foreign Intelligence Service) who received a disability as a result of hostilities, as well as families of fallen defenders of these categories.

The application procedure through the Centre for Administrative Services Provision is already valid for all categories, including for volunteer defenders from among civilians, representatives of volunteer organizations and other civilians who stood up for the defense of the state and became disabled as a result of the war.

The Verkhovna Rada of Ukraine registered the draft Law on Amendments to Certain Legislative Acts of Ukraine on Improvement of Land Use Planning (registration No. 11169 of April 12, 2024).

The draft law proposes to regulate the issue of features of territorial planning that arise as a result of the destructive impact of war. Spatial planning legislation was developed even before the war and does not take into account the challenges associated with the war.

The authors of the project note that its adoption will enable, in particular:

• to record territories (land plots) damaged by hostilities and not used for their intended purpose;
• to determine the approximate amount of funds necessary for liquidation of the consequences of hostilities in a certain territory, and the sequence of works for such liquidation;
• to assess the impact of migration processes caused by the war on the development of territories;
• to reserve territories for the placement of objects necessary for the relocation of production capacities of enterprises, reorientation of logistics chains, as well as needs related to the migration of the population (construction of housing, objects of engineering, transport and social infrastructure, etc.);
• to ensure that the State Land Cadastre is filled with up-to-date information on land use restrictions and other data based on control geodetic surveying of completed construction objects.