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A bank pledge for legal entities is one of the most common forms of securing obligations in modern financial and legal relations. It is important both for creditors — banking institutions — and for the borrowers themselves — enterprises, as it helps reduce the risks of non-repayment of credit and enables access to additional financial resources. Legal nature of a bank pledgePledge as an institution of civil law is regulated by the Civil Code of Ukraine, the Law of Ukraine “On Securing Creditors’ Claims and Registration of Encumbrances,” as well as special banking and commercial regulations. A legal entity applying for a loan is usually required to provide the bank with certain property or proprietary rights as collateral, thus ensuring proper performance of the credit agreement. By its legal nature, a pledge is a type of proprietary right over another’s property, wherein the creditor obtains a preferential right to satisfy his claims from the value of the pledged asset before any other potential creditors of the debtor. This mechanism prevents the legal entity from unjustifiably evading credit repayment, since, in the event of default, the bank may foreclose on the pledged asset. Types of pledges in banking practiceBanks and legal entities may employ various types of pledge in their relationships. The most common are: Real estate — enterprises, office or warehouse premises, land plots. This is the most attractive form for banks since it offers high stability and can be realized if the borrower defaults. Movable property — equipment, vehicles, goods in stock, finished products. In such cases, banks typically require proof of the asset’s liquidity and ease of realization. Proprietary rights — claims to receivables, funds in accounts, leasehold or licensing rights. Pledging proprietary rights has recently gained popularity, especially among companies rich in intangible assets. Shares and corporate rights — legal entities may pledge participatory interests in the charter capital of subsidiaries or shares of owned companies. This provides the bank with additional leverage over corporate governance in cases of default. Bank pledge and credit riskFor banks, a pledge is a tool to reduce credit risk. In times of economic instability or war, when corporate finances are highly volatile, collateralized lending allows creditors to avoid significant losses. For legal entities, collateralized loans are, in turn, significantly cheaper than unsecured ones because the bank’s risk is much lower, making it possible for banks to offer better interest rates. Proper valuation of collateral is crucial. Banks hire independent appraisers to determine the market value of assets and usually discount it to a certain level for extra security. In the case of movable property or inventory, a regular monitoring approach is used: the bank may require inventory checks and ongoing control over the pledged resources. Legal features of the pledgeArranging a pledge requires compliance with several critical legal procedures. First, a written pledge agreement is executed, which must specify the subject of the pledge, its value, the debtor’s obligations, and the foreclosure procedure. Second, details about the encumbrance must be registered in the State Register of Movable Property Encumbrances or the appropriate real estate registers. These legal procedures are crucial because, without state registration, the pledge does not have legal force in relation to third parties. This approach ensures transparency of the asset’s legal status and eliminates the risk of so-called “double pledging,” a common scheme of abuse. Performance and foreclosureIf the obligation is not fulfilled, foreclosure procedures are activated. According to current legislation, there are two main ways: out-of-court and court procedures. The out-of-court option involves realization of the pledged asset by agreement of the parties or via auction. The court option is longer and more complex but may be necessary in disputes over ownership. It should be noted that banks prefer out-of-court procedures, as they allow quicker return of funds and reduced court costs. Still, out-of-court conditions must be clearly defined in the pledge agreement. Risks and challenges for legal entitiesPledge is an effective way for enterprises to attract financing, but it does carry risks. The most obvious is the loss of key assets in case of default. This is especially critical for companies that pledge production facilities or assets vital for ongoing operations. If such assets are seized, business activity may be effectively suspended. Another risk is asset devaluation. During an economic crisis or market depreciation, the value of pledged property may drop significantly, so it may not cover the debt. In such cases, banks often require additional security — the so-called “top-up pledge.” Yet another problem is underdeveloped court practice. Even with a formal pledge and encumbrance registration, protecting the rights of the bank or the borrowing enterprise may prove difficult due to procedural delays, appeals, or conflicting regulations. Current trends in pledge useThe Ukrainian banking services market is gradually aligning with European standards. There is a clear trend toward digitalization of processes: banks are introducing remote pledge verification and valuation services, using electronic databases, and offering online consultations. Pledge agreements are now often signed using digital signatures and qualified electronic seals. An expanding trend is the use of intellectual property as collateral. Ukrainian IT companies seek loans secured by patents, copyrights or software products, though this mechanism still faces legal challenges and an immature practice of intangible asset valuation. ConclusionsA bank pledge for legal entities is a fundamental tool of financial and legal regulation, creating a balance between the interests of banks and businesses. It guarantees banks’ return on funds and gives enterprises access to cheaper finance. Yet, a pledge introduces business risks because, in the event of non-performance, key assets may be lost. For effective further development of pledge-based lending in Ukraine, it is vital to improve court practice, simplify foreclosure procedures, and ensure reliable, transparent asset valuation. Only in such conditions will the pledge become not just an instrument for securing loans but an effective mechanism for supporting economic turnover. Author: Ihor Yas’ko, Managing Partner at “Winner Law Firm”, PhD in Law. https://youtu.be/k2-1dq7hxcY?si=I1pGo-xjhadMy9KE

The transition of public and private institutions into the digital space has become one of the key trends in modern society. The field of complaint review is no exception. Previously, the process of submitting and reviewing complaints was associated with personal visits to government agencies or courts, long waits in queues, and the necessity of paper documents. Now, these procedures are gradually acquiring a convenient online format. Public participation in the review of complaints via electronic services increases transparency, saves time, and makes the procedure more accessible to a wider range of people. Below, we will examine exactly how one can participate in the complaint review process online — from submitting a request to taking part in a hearing remotely. We will also analyze the legal framework, technical tools, and practical aspects of this process. Legal Framework for Online Complaint Review Online participation in the review of complaints has a clear basis in Ukrainian legislation. The main documents in this field are:The Law of Ukraine ‘On Citizens’ Appeals’, which defines the procedure for submitting individual and collective complaints, including in the form of electronic appeals.The Law ‘On Administrative Services’, which provides for the possibility of interaction with state authorities in electronic form.The Law ‘On Electronic Trust Services’ and ‘On Electronic Documents and Electronic Document Flow’, which regulate the use of electronic signatures and give legal force to electronic documents.The Civil Procedure and Administrative Procedure Codes of Ukraine, which provide for the possibility of parties participating in a hearing via videoconference.Subordinate acts, in particular orders of the Ministry of Justice and resolutions of the Cabinet of Ministers, which detail the procedure for the technical provision of online hearings. Thus, the legal field has already been created and allows citizens to actively participate in hearings without the need for physical presence. Stages of Participation in Online Complaint Review Submitting a Complaint.  The first step is submitting a complaint or appeal. This can be done through:The official website of the relevant government agency.The Unified State Web Portal of Electronic Services ‘Diia’.Specialized departmental portals (for example, the NACP has an online platform for submitting complaints about corruption violations).The electronic submission form has both advantages (efficiency, no need to print documents) and requirements, in particular the need to use an electronic signature (QES). Registration and Confirmation.  The system automatically registers the complaint, assigns it a unique number, and sends confirmation to the applicant’s email or user account. From this moment, the applicant can track the status of the complaint review. Notification of Review.  When a complaint is reviewed at a meeting (for example, in a government body or a court), the applicant receives an invitation to join the review online. Such an invitation contains a link to the videoconference, as well as the date and time. Technical Tools.  Ukraine has already developed a number of technical solutions to ensure remote participation in reviews:EasyCon — an official judicial videoconferencing system used by courts for online hearings in compliance with procedural requirements.Zoom, Microsoft Teams, Cisco Webex — may be used for hearings and meetings in various governmental bodies.The ‘Diia’ portal — provides for the submission and tracking of complaints in a number of areas.Departmental online services (such as the Taxpayer’s Cabinet) allow for submitting complaints regarding decisions of controlling authorities. The user only needs a computer, tablet, or smartphone with a camera and microphone, and a stable internet connection. It is important to test equipment in advance to avoid technical problems during a hearing. Practical Aspects of Participation.  Identification. In most cases, online participation requires identity verification using an electronic signature or BankID/Diia ID technology.Submitting Evidence. Evidence can be uploaded to the electronic system as scans, electronic files, or video materials. The main requirement is that electronic documents comply with the law.Real-Time Communication. During the hearing, a participant can state their position, ask questions, and provide explanations via videolink.Record Keeping. The videoconference is recorded, and the final decision is issued in electronic form and sent to the applicant. Benefits of Online Participation.  Time and travel cost savings.The ability to participate in the process from anywhere in the world.Reduction of bureaucratic barriers.Transparency and control over the process due to videoconference recordings.Accessibility for people with limited physical abilities or those abroad. Challenges and Risks.  Although the online format offers obvious advantages, there are certain problematic issues:Technical failures of platforms or poor internet quality may hinder the process.Information security issues: the risk of unauthorized access to case materials.The need for participant preparedness: not all citizens have adequate digital skills.Online participation may not always provide a sufficient level of trust if parties are accustomed to in-person communication. Prospects for Development.  The state is gradually expanding the possibilities for online participation in hearings. It is expected that:The ‘Diia’ system will be further integrated with departmental portals.Judicial videoconferencing will be improved with the use of artificial intelligence for protocol recording and analysis.Mobile applications will be developed to allow quick complaint status tracking and hearing participation.Digital literacy of the population will increase through educational programs. Conclusion Participation in online complaint review is a modern tool for protecting citizens’ rights, combining legal guarantees, technical possibilities, and the convenience of the digital environment. Proper organization of this process helps applicants defend their interests more effectively while state authorities ensure transparency and efficiency in decision-making. Despite technical and organizational challenges, the trend toward online complaint review is irreversible and will continue to strengthen. Author — Maksym Bahniuk, Head of Tax and Customs Law Practice at the Law Firm “WINNER”. https://youtu.be/rEd6me-Ume4?si=kuUvB9cESxkkHZ6V

In September 2025, the Verkhovna Rada of Ukraine is considering draft law No. 13634, which significantly changes the approaches to granting deferments from mobilization for students and pupils during martial law. The issue was brought to the fore following a surge of abuses of educational status as a means to avoid service, as well as the need to set clear and fair criteria to protect the rights of genuine learners and the state’s defense capability. Background to the New RestrictionsRecent months have seen a significant increase in the number of men over 25 enrolling in colleges or vocational schools mainly to obtain a deferment. According to the Ministry of Education, such cases occur both due to the lack of clear legislative regulation and the possibility of repeated or interrupted studies at any age. Legislators aim to block such abuse and reserve deferments for those genuinely pursuing education for the first time within standard age and academic limits. Key Changes: Who Will Be AffectedThe new draft law sets out the following basic restrictions: Deferment for students and pupils is granted only for first-time pursuit of the corresponding level of education (bachelor’s, master’s, specialist, etc.—but only the first time). The age of starting studies matters: the right to deferment remains for those who begin their education up to a year before reaching the critical draft age (usually 25) or are studying in full-time or dual programs. Pupils of vocational and pre-university institutions who enrolled after the age of 25 automatically lose the right to deferment. University students and pupils who have had breaks in their studies, re-enrolled in a program, or failed to complete within the standard time frame also lose their deferment. Education Workers: Deferment with ConditionsDeferment for academic, research and teaching staff is retained—but now only for those who have an academic degree or work in an educational institution at least 0.75 FTE. These exceptions have sparked debate, as previously all educators had a right to deferment regardless of workload or academic status. Legislative Motivation and Official PositionAccording to explanations from the Ministry of Education and Science and the parliamentary committee, the changes aim to: eliminate abuse and fictitious enrollment for study at an older age; balance the right to education with military duty; maintain equality for genuine students studying full time or in dual formats; optimize the personnel resource by clearly designating categories of strategic importance. Automation of Deferment RenewalOne technical innovation is a simplified system for confirming student status: data are sent to the Unified State Electronic Database on Education and automatically synchronized with the registers of the Ministry of Defense and military enlistment offices. Students no longer need to visit the recruitment office in person every three months—once every six months is enough, and deferment status is also updated in the “Reserv+” application. Expected Consequences for Students and Pupils Reduced opportunities for “technical” enrollment solely to avoid mobilization. Standardized approaches: the right to deferment is only guaranteed to those studying for the first time within legal time limits. Increased responsibility for educational institutions for data transfer and avoiding fictitious students. Higher risk of mobilization for those trying to circumvent the system through repeated enrollment or delays. Criticism, Risks, and DiscussionAmong experts, students, and educational institutions, the new restrictions have drawn mixed reactions: Many welcome the fight against abuse, but critics warn of “one-size-fits-all” risks, as those genuinely wishing to retrain may also lose deferments. Concerns also exist about the impact on lifelong learning and retraining in the challenging context of martial law. Prospects and Future ChangesDraft law No. 13634 has already been adopted in the first reading and is likely to be amended before final adoption, considering feedback from the public, students, and educators. At the same time, the deferment system itself may become more technological, with new online services, electronic registers, and automated student verification. In the new conditions of martial law, deferment from mobilization for students and pupils will no longer be a universal guarantee but an exception—with strict verification requirements and no repeat use through educational loopholes. The state is gradually building a more just and transparent system meant to protect only genuine learners, not those abusing the law to avoid national duty. Svitlana Krutorogova — Attorney, “WINNER” Law Firm. https://youtu.be/k2-1dq7hxcY?si=91A32Cx_hw4dIuEI

Obtaining a loan is one of the most important financial operations a modern person makes. This step can help solve life’s problems, make dreams come true, or develop your own business, but it also creates a range of risks that may cause financial difficulties in the future. To avoid negative consequences and use a loan to your advantage, pay close attention to the key points of this process. Personal solvency and loan purposeBefore applying to a bank or financial company, objectively assess your income and expenses. Experts advise that monthly loan repayments should not exceed 30–35% of disposable income. It is crucial to consider possible force majeure: job loss, income reduction, unforeseen expenses, and personal life changes. A realistic approach to budgeting is the foundation of financial stability throughout the loan period. Choosing the optimal credit productThe market offers dozens of loan options: consumer, auto, mortgage, microloans, credit cards. Each need has an appropriate tool with its own advantages and risks. Credit cards, for example, provide flexible access to funds but carry high cash withdrawal rates; business loans have stricter terms and larger amounts; microloans are fastest to obtain but have the highest rates. There are promotional offers — do not rely solely on advertising and always inquire about the full list of expenses. Bank requirements for the borrowerBanks check credit history, verify identity, income, and sometimes family status. The standard document package usually includes: Ukrainian passport individual tax number (ITN) income certificate for the last 3–6 months These documents let the financial institution assess your creditworthiness, stability, and the absence of overdue debts or suspicious data in your history. Attempts to hide information or provide fraudulent documents almost always lead to rejection. Careful examination of the credit agreementThe agreement is the main legal document establishing the parties’ rights and obligations. Before signing, carefully check: amount and type of interest rate (fixed or floating) terms of early repayment late payment penalties account opening/servicing/disbursement fees compulsory insurance clauses dispute resolution procedures the right to cancel the agreement within 14 days under consumer protection law Unclear conditions, hidden charges, heavy penalties, or complex terms are warning signs — consider another lender or consult a lawyer. Calculating the actual cost of the loanIt is risky to focus on the “nominal” rate only; real costs include many additional charges: commissions, insurance, notary fees (for mortgages), one-time and recurring fees. Ask the bank manager to calculate the total cost of the loan for the entire period — banks are required to provide this by law. If they evade, find another lender. Credit history and other obligationsCredit history is the cornerstone of future borrowing. Past delays or unpaid loans will complicate getting new loans and lead to worse terms. Simultaneously servicing multiple loans lowers the lender’s trust. Check your credit history with bureaus before applying for a new loan — this can be done online. Features of early repayment and debt risksEarly repayment is a popular option among prudent borrowers, but banks often impose fees or restrictions. All terms must be clearly stated in the contract. If payments are delayed, penalties, fines, and even court action may result, with a negative mark impacting future loan access. Comparing lender termsDo not choose a loan blindly — use online comparison services, call several banks and financial companies, request a detailed repayment schedule and full cost breakdown, and evaluate bonuses, fees, extra services, collateral or guarantee requirements. Risks of microloans and instant creditMicroloans target urgent expenses but come with very high annual interest, hidden charges, and aggressive collection if unpaid. Use them only for critical needs and read the contract carefully to ensure timely full repayment. Legal details and consumer rightsUkrainian law entitles consumers to refuse a loan within 14 days without penalty (just repay the principal and minimum interest). If you are the lender, formalize the deal with a receipt/contract and legal advice. Tips for safe borrowing: Clearly define the loan’s purpose. Assess your ability to repay — build in financial reserves. Compare only transparent offers, avoiding dubious companies. Do not take out new loans to cover old ones. Always pay on time and monitor your credit history. Exercise your right to cancel — this protects you from mistakes. The most important aspect of taking a loan is thoughtfulness, attention to detail, and a responsible approach at every stage. The more consciously you choose a product and the more carefully you study the agreement, the lower your risk of falling into financial dependence or becoming a victim of unscrupulous lenders. Author: Ihor Yasko, Managing Partner at “WINNER” Law Firm, PhD in Law. https://youtu.be/k2-1dq7hxcY?si=91A32Cx_hw4dIuEI

Taking out a loan is an important financial step that can become either a useful tool for development and solving life problems or a source of extra costs and risks. The key is to approach lending as consciously as possible, considering all legal and financial nuances, not succumbing to advertising, and not rushing your decision.Personal financial capacity — the first criterionBefore taking a loan, it is necessary to thoroughly analyze your own budget. Will your income be enough for regular repayments without harming your family obligations or other life expenses? Experts advise that the monthly loan repayment should not exceed 30–35% of your disposable income. It is also important to consider possible unforeseen costs: the risk of temporary income reduction, additional living expenses, changes in family composition, etc.The purpose of the loan and choice of loan typeNot all loans are the same — there are consumer, mortgage, car, microloans, credit cards, and business loans. When money is needed for a specific goal (such as buying a home, a car, education, or business development), it is best to choose the product that fits the purpose and offers the best repayment terms. Microloans usually carry high risks due to high interest rates and short terms, while credit cards are flexible but come with high costs when withdrawing cash.Compare offers from banks and financial companiesIn the modern online environment, comparing loan terms is easy: bank and financial institution websites offer information about interest rates, terms, fees, and other payments. Do not trust advertising alone — look for the full list of costs. If information about rates and additional terms is hidden or difficult to understand, it’s better to contact another lender.Study the loan agreement carefullyThe agreement is the main document defining the rights and obligations of the parties. Before signing, read all sections carefully: interest rate, type of rate (fixed or variable), conditions for early repayment, penalties, dispute resolution rules, grace periods, the availability of loyalty programs, and additional services. Pay special attention to commissions and insurance, especially if insurance is required. All documents mentioned in the contract — receipts, loan agreements, and fund usage instructions — must be transparent and comply with the law.Calculate the real cost of the loanThe total cost of the loan includes not just the nominal rate but also commissions, insurance, services, and arrangement fees. Interest may be charged on the balance or the entire amount; fees for issuing money, early repayment, or late payments can alter your plans. Consider whether you need guarantors or collateral, especially for large loans or mortgages.Early repayment and non-payment risksFind out if it is possible to repay your loan early without penalties. Some banks may impose considerable extra costs if you want to close the debt early. If you are late with a payment, expect fines, penalties, and a negative impact on your credit history. Don’t use a new loan to pay off an old one — that creates a debt conveyor and leads to major problems.Refusals and legal aspectsUkrainian law allows consumers to refuse a loan or credit within 14 days of signing the agreement. In that case, you only return the principal and minimal interest. If you are the creditor, prepare all documents properly: the loan agreement, the receipt for funds, and signature authentication.Credit history — the basis of the futureRepay your liabilities on time and avoid delays. Even one violation can greatly affect your rating and make it harder to access new advantageous offers from banks. Track your credit history — this can now be done online through special services.Unjustified loans — the main mistakeOne of the most common financial mistakes is taking a loan just because it’s accessible, without real need or a clear spending plan. If the matter is not urgent, or you can save the money yourself, it’s better to refrain.Practical tips when taking out a loan-Assess the purpose of the loan: the more specific, the easier it is to find the best program.-Analyze income and expenses — realistically assess your solvency.-Compare different banks’ offers and read agreements.-Calculate the total of all overpayments and fees.-Avoid microloans with high rates.-Don’t take out a loan to pay off an old one.-Pay on time — this is a plus for your credit history.-Use your right to refuse the loan to protect your interests.ConclusionA loan can be an effective tool for resolving financial issues if approached responsibly and thoughtfully. Studying terms, analyzing the agreement, comparing offers, and soberly estimating your own solvency will help minimize risks, avoid debt traps, and make borrowing useful for your budget. Author: Ihor Yas’ko, Managing Partner at “Winner Law Firm”, PhD in Law. https://youtu.be/k2-1dq7hxcY?si=91A32Cx_hw4dIuEI

UAH 100 million bail for the Stolitsa Group developer: why the High Anti-Corruption Court imposes such preventive measures and what the consequences are for suspects in the state land caseOn September 11, the High Anti-Corruption Court determined a preventive measure for the co-founder of Stolitsa Group, Vladyslava Molchanova, in the form of bail of UAH 100 million without detention in the case concerning the legalization and alienation of state-owned land near Kyiv. Circumstances of the high-profile caseAccording to the judge’s ruling, the bail amount was lower than the prosecutor’s request (UAH 300 million), and it must be paid within five days. Molchanova is obligated to: appear upon summons of the investigator, prosecutor, and court; notify of any change of residence or employment; avoid contact with other suspects and witnesses; and surrender passports and travel documents. The court order may be appealed within five days. Substance of the criminal proceedingsNABU and SAPO charged Molchanova and five other participants under Part 5 of Article 191 and Part 3 of Article 209 of the Criminal Code of Ukraine—illegal appropriation and legalization of 18 hectares of state land near the capital, valued at over UAH 160 million. The investigation points to the involvement of former MP Yuriy Ivanyushchenko and individuals from the State GeoCadastre, with the land being registered through controlled companies and individuals. Openness of the process and the suspect’s reactionThe hearing was broadcast online, and Molchanova has already announced her intention to appeal, not accepting either the suspicion or the amount of bail. What happens if bail is not paid or obligations are violatedIf the suspect does not pay the bail within the period set by the court, a stricter preventive measure may be applied—such as detention. If, after posting bail, the person violates imposed obligations (e.g., fails to appear when summoned, influences other case participants, etc.), the bail amount will be forfeited to the state and the court may strengthen the preventive measure, including possible detention. Author: Ihor Yas’ko, Managing Partner at “Winner Law Firm”, PhD in Law https://youtu.be/k2-1dq7hxcY?si=rGLfKex9WQKPD71J

In September 2025, the State Tax Service of Ukraine (STS) announced the approval of a new list of so-called “white businesses” — a register of companies and economic entities that have demonstrated a transparent tax history, proper fulfillment of budget obligations, and compliance with integrity criteria. The introduction of this list is another step in reforming the tax administration system, strengthening trust between the state and responsible businesses, and reducing pressure on entrepreneurs who operate legally.The initiative immediately drew the attention of experts, as it represents a kind of “institutionalization of trust”: instead of treating all taxpayers with suspicion, the tax authorities are shaping a selective approach, recognizing those who consistently provide honest reporting, comply with the rules, and avoid shadow schemes. What is “white business”?In tax terminology, a “white business” refers to companies or sole proprietors that operate fully legally, regularly pay taxes, maintain transparent reporting, and do not use artificial minimization tools. At different times, tax authorities have tried to encourage such enterprises by reducing the number of inspections, simplifying interaction procedures, or accelerating VAT refunds. The new STS list systematizes this approach at a new level: businesses included in the register receive official “white” status and thus a range of guaranteed advantages in dealing with the tax service. Preconditions for creating the registerThe establishment of the list was driven by several factors: A large shadow economy, estimated at around 30% of GDP in 2024. Business distrust of the STS, with audits historically used as a tool of pressure. EU integration commitments, requiring Ukraine to implement compliance-based mechanisms. The demand of society, with business associations advocating for the rewarding of transparent companies. Key criteria for inclusionThe STS defined several criteria for businesses eligible for the list: flawless tax history over the past three years, absence of tax debt and penalties, no pending criminal cases concerning tax crimes, transparent ownership structure and disclosure of final beneficiaries, confirmation of real economic activity (no signs of fictitiousness), adequate wage levels, not lower than the industry average. Thus, the criteria go beyond formal compliance, emphasizing fair pay and the avoidance of fictitious schemes. What benefits does business receive?Inclusion in the “white business” list provides: reduced risk of inspections, expedited VAT refunds, priority in public tenders, reduced bureaucracy and simplified procedures, enhanced business reputation. Potential risks and threatsDespite the positive effects, concerns remain, such as: subjective application of criteria, risk of corruption or abuses, creation of a “two-tier” business environment, possible political manipulation. Impact on the business climateThe “white registry” could foster a culture of voluntary tax compliance, improve competitiveness, and attract foreign investment. However, if applied unfairly, it could undermine trust in the initiative itself. Reaction of the business communityThe European Business Association and the American Chamber of Commerce praised the idea but stressed the importance of clear and equal procedures. Tax consultants recommend transparent rules for inclusion. Future perspectivesThe STS announced that the list will be regularly updated, integrated with tax ratings, and linked to electronic services. In the future, “white business” may form part of a broader tax trust framework, including real-time data exchange and reduced bureaucracy. Thus, the new “white business” register approved by the STS marks a key step toward developing a healthier economic environment in Ukraine. Its success will depend on the transparency, fairness, and accessibility of its administration. Author: Ihor Yas’ko, Managing Partner at “Winner Law Firm”, PhD in Law. https://youtu.be/k2-1dq7hxcY?si=rGLfKex9WQKPD71J

In September 2025, the Government of Ukraine introduced a new legislative draft aimed at regulating the income of individuals earning profits through digital platforms. This initiative continues broader reforms in tax policy, as well as the regulation of labor and civil-legal relations within the digital economy, and meets Ukraine’s obligations under the EU Association Agreement. The draft law allows individuals to receive legal income from digital platforms without the mandatory registration as private entrepreneurs (FOPs). This topic has gained particular relevance due to the rapid growth of the digital services market in Ukraine, including the expansion of freelancers, content creators, bloggers, and marketplace users such as Amazon, Etsy, Upwork, and Ukrainian platforms. At the same time, the absence of unified tax accounting rules created tension for both contractors and the state, which lost potential tax revenues. BackgroundUntil now, the most common way to legalize income from digital platforms in Ukraine was registering as a FOP, usually under the third group of the simplified tax system. This provided minimal tax burdens—5% of income plus a mandatory social contribution (SSC). However, for many individuals, registration proved too complicated due to the sporadic nature of their earnings, small income volumes, or lack of regular clients. Meanwhile, tax authorities highlighted a large “grey zone,” with employment relationships often disguised as freelance or service contracts and income not declared at all. This not only shrank the tax base but also created issues with social protection for workers, who lacked official insurance histories. For these reasons, the government decided to present a new tool—the regime for legalizing income from digital platforms without FOP registration. Its aim is to establish fair and simple rules for millions of citizens working occasionally in the digital environment. Key Provisions of the Draft Law The tax agent is the digital platform. Platforms that pay remuneration to Ukrainian users will act as tax agents: withholding tax at source and automatically transmitting data to tax authorities. Simplified taxation for individuals. Unlike FOPs, individuals will not maintain accounting, submit annual reports, or handle bookkeeping. Tax obligations are fulfilled at the moment of payment through the platform. Income thresholds. The draft sets certain annual limits (e.g., close to UAH 1 million); exceeding these will require registration as a FOP or switching regimes. Tax rate. A fixed rate, likely between 10–15% including social contributions, is foreseen. While higher than the FOP third group’s 5%, it’s simpler for irregular earners. Social guarantees. Part of the taxes is directed to record insurance history, allowing performers to accrue pension rights without separate SSC payments. Potential Benefits Legalization of mass income. Thousands of people who receive irregular income from sales, services, or content can work transparently without bureaucratic hurdles. Increased tax receipts. The government estimates the potential at billions of hryvnias annually, considering the scale of the gig economy. Personal convenience. Performers avoid administrative costs of FOP registration and accounting. EU law integration. Many EU countries already use similar mechanisms, with the platform as tax agent, ensuring rule compatibility and reducing evasion. Risks and Challenges Increased tax burden. For active freelancers with higher incomes, rates may be heavier than the current 5% for FOPs, potentially incentivizing off-platform “grey” channels. Administrative burden for platforms. Platform owners will face extra duties for accounting, reporting, and remitting taxes, possibly reducing interest in working with Ukrainian users. Double taxation risks for international platforms. There may be issues coordinating rules to avoid double collection when payments go through foreign accounts. Income thresholds. If set too low, many users may still need to become FOPs, negating the law’s benefits. Labor Market ImpactThe draft law acknowledges the reality of a large segment of the population working for digital platforms without traditional labor contracts—bloggers, marketplace traders, remote services in design, programming, translation, and other intellectual labor. On one hand, it legalizes this area, reduces shadow economy size, and expands the tax base. On the other hand, it may cause a shift between FOPs and the new “individuals on platforms,” stimulating competition and changing the employment structure. Expert responseLawyers, tax consultants, and business representatives have mixed views. Some support the reform as a modern step toward legalizing digital business; others warn that excessive burdens on platforms and individuals could shrink the market or push freelancers into the shadow economy. The key challenge will be practical implementation—technical solutions for automated withholding, integration of international platforms with Ukrainian tax authorities, and flexible rules for small, occasional incomes. Adoption prospectsThe chances of passing the draft law are high given that it fulfills EU trends and expectations. However, specifics such as rates, thresholds, and the reporting mechanism may be refined in parliament. For the state, it is crucial that the model encourages voluntary compliance, rather than driving business underground; for citizens, the taxes must be transparent, fair, and not outweigh the benefits of legalization. Thus, the new government initiative for platform income without mandatory FOP registration is an attempt to balance the interests of the state and millions of digital economy users. Its success will depend on how convenient, flexible, and beneficial the new rules are for practitioners, since their willingness to operate legally will determine the real impact of the reform. Author – Maksym Bahniuk, Head of Tax and Customs Law Practice at WINNER Law Firm. https://youtu.be/rEd6me-Ume4?si=z2_OCrLqcOB29225

Form 20-OPP is the foundation of business “tax transparency”: it allows regulatory bodies to obtain information about all taxable assets and objects used in business activities. Despite its apparent simplicity, failure to submit this notice on time entails risks of substantial fines, tax audits, and even court disputes. In 2025, liability practice has become much more detailed, demanding greater diligence from accountants, sole proprietors, and legal entities. Legal substance of 20-OPP: who submits and whyAll taxpayers—legal entities, their separate branches, and sole proprietors—are required to submit 20-OPP. The aim is to record all taxable items (premises, warehouses, vehicles, land, etc.), whether created, liquidated, acquired, or changed in status. Law enforcement and tax authorities view 20-OPP as a basic function of business identification, not merely a formal duty. Legal basis and liability groundsLiability for failure or late filing of 20-OPP is mainly governed by Article 117.1 of Ukraine’s Tax Code. It prescribes financial penalties for violating the terms of submitting required applications, documents, and reports set out in the Tax Code or related acts (such as Ministry of Finance Order No. 1588). Fines may be imposed for: late submission of information about taxable objects; complete failure to notify when an object is created, changed, or liquidated. Penalty amountsRates differ by entity: Sole proprietors/self-employed: UAH 340 per instance; repeat violation within a year—UAH 680. Legal entities/subdivisions: UAH 1,020 per case; repeat within one year—UAH 2,040. Note: the fine is applied to each undisclosed object—not to the whole violation. If an audit reveals several unreported items, penalties accrue for each separately. Most court cases confirm this, though there are exceptions. How violations are detected and fines imposedViolations are identified through: desk (documentary) audits; analysis of tax data on the taxpayer’s real assets; cross-checks with property registers, PPO/PRRO data, and bank information. Penalty imposition comes by written tax notice with a list of undisclosed objects, the sum owed, and grounds for collection. Are fines always legal? Court practice and objectionsThere is legal ambiguity on sanctions. Some courts restrict liability under Article 117.1 to documents related specifically to taxpayer registration, not asset reporting (20-OPP). For example, the Supreme Court, in Ruling No. 826/14197/17 (18.04.2024), said fines apply only to registration or updates of taxpayer data—not to item notifications. Nevertheless, tax offices usually ignore this stance and continue to fine. Realistically, only challenging the penalty in court can protect the taxpayer’s rights. Practical steps after receiving a penalty Analyze the reason for the fine: what objects were undeclared and based on what evidence. Check the tax authority’s compliance with the Tax Code, especially for repeat offenses. Prepare objections for the tax office or proceed to court—using up-to-date judicial practice, which sometimes allows for cancellation if the Tax Code provision does not cover the violation at issue. Act promptly: don’t miss the appeal period, or the penalty will automatically take effect. Exceptions and mitigationNo penalty for non-filing 20-OPP applies if: corrected data is filed before discovery of the violation; force majeure (martial law, emergencies) is properly documented; there was an unintentional formal error that did not affect recordkeeping (besides accountant data). Desk audits rarely result in penalties; most fines follow onsite/documentary inspections. Key risks and real-world cases Large numbers of rented or third-party assets increase penalty risk if 20-OPP is not filed. Each business or warehouse relocation requires notification; deadline breaches result in separate fines. Legal entities with many units often face multiple tax notices after complex audits. Even a single reporting omission can trigger a cascade of checks on other undeclared assets. Practical tips to minimize penalty risk Regularly review your 20-OPP and promptly reflect all changes (leases, sales, transfers). Don’t delay updates: you have 10 working days from the supporting document or status change. Remember: repeat violations double fines within a year. When unsure, consult a specialist or tax advisor. Keep bank and asset documents supporting acquisition, lease, or disposal for dispute resolution. ConclusionLiability for failing to submit or late submission of 20-OPP is not a mere technicality—it’s a real, far-reaching risk for any business or self-employed entity in 2025. Despite some legal uncertainty, the odds of avoiding a fine without proper justification are slim. Accurate and timely reporting, detailed records, and prompt appeal of questionable tax decisions are essential for survival in Ukraine’s modern business environment. Author – Maksym Bahniuk, Head of Tax and Customs Law Practice at the law firm “WINNER”. https://youtu.be/rEd6me-Ume4?si=z2_OCrLqcOB29225

In 2025, Ukraine significantly changed its approach to monitoring the income of individuals selling goods and services via marketplaces. Draft legislation set for implementation will require marketplaces to report sellers’ income to the State Tax Service. This heralds a new era of digital tax supervision affecting both large platforms (OLX, Prom.ua, Rozetka, Amazon, Etsy, Instagram, TikTok) and small “non-professional” users alike. Reasons and international contextStronger tax control over marketplaces in Ukraine is driven by EU integration requirements, OECD Global Forum rules for automatic data exchange, and explosive e-commerce growth — experts estimate at least 30% of goods and services turnover has shifted online. Essence of the bill: who must report and whatThe draft law introduces a new taxation regime for individuals selling through digital platforms: The platform becomes a tax agent, not just an intermediary; Starting 2026, each operator must submit to the tax service an annual income report for users by January 31; The report includes amounts received by “reportable sellers,” their registration data, and designated account details; Banks must provide transaction details to tax authorities upon request. Who is covered: “reportable seller” criteriaChanges affect individuals who: receive payment for goods/services online (e.g., OLX delivery, Prom payment, NovaPay etc.); are not sole proprietors, do not use hired labor, and are not involved in excise activities; do not exceed UAH 5 million annual income; have a dedicated account for transactions; are not sanctioned. Taxes and ratesCompliant sellers (meeting requirements) pay a preferential rate: 5% PIT + 5% military levy. Others — 18% PIT and 1.5% levy. If profits bypass the rules, additional assessments and fines up to 23% of the sum may apply. Fiscal receipt and accountingFrom March 1, 2025, all payment systems that process marketplace transactions are required to provide fiscal receipts and transfer this data to tax servers. Marketplaces must identify sellers, track transaction activity, and record entry/exit and transaction nature. What counts as “reportable activity” Renting residential/commercial property or vehicles Personal services (consulting, teaching, freelancing) Sale of goods, including second-hand items via dedicated platforms Practical implications for sellers Even a single sale (e.g., shoes or a smartphone) via bank card is considered taxable income; To avoid claims, individuals must report income and pay tax, or register as a sole proprietor; Hiding sales or card income gets increasingly difficult — payment system and marketplace data are consolidated automatically. Penalties for non-compliancePlatforms missing the January 31 reporting deadline may be fined up to 100 minimum wages (~UAH 800,000). Sellers may face additional assessments, fines, account blocking, and loss of preferential status. International standards and prospectsUkraine is synchronizing its tax system with EU and OECD practice (DAC7 directive), enabling automatic cross-border data exchange. From 2027, platform reporting will become the norm, promoting full income transparency. ConclusionsThe obligation for marketplaces to report to tax authorities is an inevitable result of the digital shift: it streamlines administration, boosts budget revenues, and minimizes the shadow economy. Online sellers should prepare in advance: open dedicated accounts, keep accurate records, process documents properly, and monitor legislative changes. Transparent accounting is now the key to safe marketplace business. Author – Maksym Bahniuk, Head of Tax and Customs Law Practice at the law firm “WINNER”. https://youtu.be/rEd6me-Ume4?si=z2_OCrLqcOB29225