News

Prospects for business at reduction of term for returning currency earnings to the country

01.12.2009

On 1st December in the News Agency Interfax-Ukraine press centre the briefing on " Prospects for business at reduction of term for returning currency earnings to the country" took place. The Head of Entrepreneurship Council at the Cabinet of Ministers of Ukraine Oksana Prodan, First Deputy the Head of Verkhovna Rada’s committee on Finance and Banking activity, Head of Council of Association of Ukrainian banks Stanislav Arzhevitin, partner with Pavlenko and Poberezhnyuk, Law group Larysa Poberezhnyuk and managing partner with Ol&Rust LC, lawyer-at-law Roman Hrustenko reported.

On 19th November, 2009 the President of Ukraine Victor Yushchenko signed the Law on overcoming of negative consequences of financial crisis according to which currency crediting of individuals is limited. The Law reduces the term for returning currency earnings from 180 to 90 days.

«Reduction of the term for returning currency earnings to Ukraine from 180 days to 90 can cause a number of problems with already concluded external economic contracts. Thus, if term of payment of the goods in the contract is specified more than 90 days, it is necessary to sign a bilateral agreement of the parties and to reduce this term, as further as practice shows, sanctions for infringement of return of currency earnings can be applied by tax inspections, despite that the law has no retroactive effect. I would recommend when such conditions are amended legislatively to specify that they do not extend on the external economic contracts concluded before coming into force of the Law on amendments, and thus to minimize number of disputes which can arise in future», Larysa Poberezhnyuk, the partner with Pavlenko and Poberezhnyuk, Law group has noted.