Legal Aspects of Economic Activities Implementation Under Martial Law in Ukraine: Amendments to the Legislation

Abstract

This contribution explores the issues of special regimes, a notion of martial law, a notion and features of economic activities, the implementation of economic activities, taxation of economic entities and state of business in Ukraine under the martial law. Theoretical and practical interest in the issues of economic activities implementation and taxation of economic entities in Ukraine under the martial law is caused, first and foremost, by social, economic and geopolitical transformations that have been unfolding in the world in recent years. Under the current circumstances, Ukraine is faced with a range of issues that can only be solved through identification and analysis of real and potential threats to the economic entities in martial law conditions. A significant number of global threats necessitates the creation of special legal mechanisms regulating the public relations that arise in cases of military, social, technogenic and natural emergences. The goal of this contribution is to study the notion and implementation of economic activities and peculiarities of economic entities taxation, as well as to review and analyze the legislation amendments concerning the implementation of economic activities and conditions, in which businesses are conducted, under the martial law in Ukraine. The author concludes that not only do businesses continue paying taxes to the State Budget, but they also do that in advance. In February 2022, the General Fund of the State Budget received 104,6 billion UAH, which exceeds the monthly norm by 29,3% or 23,7 billion UAH. Considering the projected deficit of 66,2 billion UAH in the first two months of 2022, the surplus of the General Fund amounted to 13,1 billion UAH and of the State Budget in general – to 24 billion UAH. The National Bank of Ukraine (NBU) has promptly transferred almost 19 billion UAH of the profit to the State Budget to financially secure functioning of the State in the wartime conditions. Consequently, total deregulation of business and introduction of tax incentives are the only possible steps to ensure the efficient functioning of the economy and implementation of the economic activities by business entities under the martial law.