| November 2003 | www.ssd.com |
Recent amendments to the Ukrainian Land Code enable Ukrainian legal entities with foreign investments to acquire non-agricultural land in Ukraine. Furthermore, any legal entity can appeal in court a local authority's refusal to provide the right to use a land plot.
Taxes
On January 1, 2004, amendments to the tax legislation will take effect:
- The progressive personal income tax (of up to 40 percent) will be replaced by a standard 13-percent rate. On January 1, 2007, the rate will increase to 15 percent.
- The company profit tax rate will be reduced to 25 percent from 30 percent.
New laws clarify the procedure for the realization of collateral under loan and mortgage agreements, and give the parties the right to enter into a mortgage agreement for real property currently not owned by the mortgagor or currently under construction. Furthermore, the laws introduce the concept of securitization and provide for the possibility of mortgage pooling and the issuance of asset-backed securities – mortgage certificates. The laws provide powerful financial instruments to Ukrainian banks, allowing them to attract investment and safely finance the construction of residential property.
Advertising/Trademarks
Effective July 11, 2003, the Law on Advertisement's new version requires trademarks in a foreign language to be duplicated in Ukrainian when they are used in any advertisement in Ukraine.
The information in this bulletin was compiled by the Squire Sanders Moscow office.
The contents of this newsletter are not intended to serve as legal advice related to individual situations or as legal opinions concerning such situations. Counsel should be consulted for legal planning and advice.
©Squire, Sanders & Dempsey L.L.P.
All Rights Reserved
November 2003
Ivan A. Trifonov
Managing Partner
itrifonov@ssd.com
David M. Wack
Partner
dwack@ssd.com
Peter A. Maximov
Senior Associate
pmaximov@ssd.com
Moscow Office
Phone: +7.501.258.5250
Fax: +7.501.258.5251
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