The government tries to unify all legislative instruments regulating tax collection issues. So far it was not successful.
This week, during a press-conference, experts of the law firm “Arzinger” have discussed the provisions of the new tax code as well as the question what awaits business after the new Tax code comes into force.
The tax experts of Arzinger predict increase of number of disputes between businessmen and controlling authorities as well as increase of number and duration of inspections. Sergey Shklyar, managing partner of Arzinger, noted: «For sure, there will be more disputes. It is inevitable as passing of any law increases the number of disputes per se, and until certain court practice is established a lot of swords will be crossed. It is not to forget as well, that any document, any “inaccuracy” will be interpreted to the benefit of the state and not the tax payer.” Read more »

On 23 July 2010 the Resolution of the NBU’s Board of Directors as of 13 July 2010 No. 327 “On adoption of Regulation on provision by the NBU of stabilization loans to Ukrainian banks” (hereinafter – the “Regulation”) became effective.

Mentioned resolution cancels resolution of the NBU’s Board of Directors as of 4 February 2010 No. 47 “On adoption of Regulation on refinancing and provision by the NBU of loans to Ukrainian banks for the purpose of stimulation of crediting of Ukrainian economy for the period of its return to pre-crisis characteristics” and establishes new rules and requirements of providing banks with stabilization loans which are significantly different from the previous ones.

Pursuant to the new Regulation the stabilization loan may be granted exclusively to solvent bank for support of its liquidity for the 90-day term with possible extension up to 90 days.
Interest rate under the stabilization loan is floating and shall amount to the NBU’s discount rate plus two interest points.
To limit the bank’s liquidity risk the NBU may, upon granting the loan or changing its conditions, establish restrictions and requirements in respect of bank’s activity. Read more »

On 21.07.2010 the draft law “On Amending Certain Legislative Acts in Healthcare Sector” providing for control strengthening over circulation of drugs and dietary supplements was registered at the Verkhovna Rada of Ukraine.
Among the most significant amendments which can be implemented in the nearest future is direct prohibition of drugs advertisement (Rx as well as OTC) and introduction of inspections as for the material and technical recourses as well as staff qualification of a licensee by a licensing body before issuance of license for wholesale or retail sale of medicines.
Besides the Ministry of Healthcare of Ukraine has published a draft order (“Draft order”) amending its order No. 360 as of 19.07.2005 “On Procedure of Drugs and Medical Products’ Sale from Pharmacies and their Structural Divisions” for its public discussion. Read more »

From April 30, 2010 till June 15, 2010 National bank of Ukraine (hereinafter – the “NBU”) adopted some regulations, which shall become effective in July 2010 and implement significant changes into regulation of the banking activity in Ukraine.

1. On 15 June, 2010 the NBU adopted the Regulation No. 280 “On adoption of Changes to Regulation on organization of operational activity in Ukrainian banks”. This Regulation was registered with the Ministry of justice of Ukraine on 6 June, 2010, and shall become effective upon 10 days after its state registration (except for some provisions to become effective on 1 January, 2011).
Among changes implemented by this Regulation the most significant is the amendment to clause 1.4 of the Regulation on organization of operational activity in Ukrainian banks, according to which “processing of data regarding operations [of bank] and its storage shall be performed on servers and/or other computer hardware which shall be physically located in Ukraine”. This provision shall become effective on 1 January, 2011.
Consequently, from 1 January, 2011 processing and storage of data on banking operations on servers located abroad shall be prohibited. Most of all it affects banks with foreign capital, servers of which are located abroad. They will be enforced to make fundamental changes to their policy regarding the data processing and storage. Read more »

As of 09.07.2010 there are 14302 medicines (domestic-3841, foreign – 10472) in the State Register of Medicinal Products of Ukraine. The list of OTC drugs authorized for use in Ukraine (approved by Order of Ministry of Healthcare of Ukraine # 793 as of 02.11.2009) includes 3626 names, thus current OTC’s volume of Ukrainian pharmaceutical market is approximately 25 %, which is lower than in other CIS countries.
Despite that fact, according to the recent statement of the Minister of Healthcare of Ukraine the intention of the government is to shrink significantly the list of OTC drugs and to strengthen control over the advertisement of medicines. Read more »

On June 1, 2010 the Parliament of Ukraine adopted the Law «On protection of personal data» (hereinafter – the Law) which shall become effective on January 1, 2011. The Law regulates relations connected with protection of personal data under processing, stipulates the basic principles of the personal data processing, the main terms related to such processing, rights and obligations of the persons involved into the process of the personal data processing.
The “personal data”, to be protected under the Law, shall be information or set of information about a natural person (data subject) who is identified or can be precisely identified. Mentioned definition is much wider than the definition of “personal data” set out in section 23 of the Law “On information”, and allows treating almost any information about an individual as the personal data.
However, it shall be noted that according to section 5 of the Law, only personal data under processing in personal databases falls under protection by the Law.
The Law defines the “personal database” as a denominated set of arranged personal data in electronic form and/or in the form of personal data filing systems; and the “personal data processing” is defined as any operation or set of operations performed fully or partially in the information (automatic) system and/or in personal data filing systems, connected with the collection, registration, accumulation, storage, adaptation, alteration, renewal, use and dissemination (disclosure, sale, transmission), depersonalization, and destruction of data about an individual. Read more »