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      Customs Violation Penalties: What to Do and How to Protect Your Rights Customs violations in Ukraine are among the most common reasons for fines and sanctions on both individuals and businesses. Recent legal reforms have significantly increased liability, making it essential to know your rights and follow the correct procedure when facing enforcement. Penalties under Ukrainian customs law: Fines — the most common form of sanction. The amount depends on the violation.E.g., obstructing a customs officer = 100 tax-free minimums; repeated violations = 500. Confiscation — applies to goods or vehicles moved illegally (e.g., smuggled, undeclared). Warning — used in minor cases. From 2025, new penalties apply: some violations may trigger fines of 50–100% of the item’s value or direct confiscation. How enforcement works: It begins with a customs violation protocol, detailing all case facts and listing seized goods/documents. The case is reviewed by customs authorities or court.Note: a fine does not exempt you from unpaid customs duties. What to do if a protocol is issued: Stay calm and do not sign anything without reviewing. Ensure accuracy and that your comments are included. Collect supporting documents: customs declarations contracts invoices transport and payment docs Consult an attorney or legal firm. A lawyer will assess the case and prepare your legal defense. Appeal the customs decision. You can challenge it through administrative or court procedures. Filing a complaint suspends enforcement. Watch deadlines. Administrative fines must be imposed within 6 months from detection. Why WINNER Law Firm? Proven track record in defending clients in customs disputes. Document review to identify protocol errors. Preparation of appeals and court claims. Court representation at all levels. Legal advice on customs clearance and recovery of overpaid duties. Case study:  WINNER attorneys helped return seized currency to a client facing full confiscation. Thanks to legal defense, only a fine was imposed. Conclusion:A customs violation is not the end. The right legal strategy, strong evidence, and timely legal action can minimize risk, reduce penalties, and help reclaim your property.WINNER Law Firm is your trusted partner for customs protection at every stage. 🎥 Video below: “How to Respond to Tax Inspections” by Maksym Bahniuk, Head of Tax and Customs Practice at WINNER. https://youtu.be/rEd6me-Ume4?si=p5MyKIs4rnIOA46-

Starting your own business in Ukraine is both a great opportunity and a serious responsibility. Your first step is choosing the legal form — LLC or Sole Proprietorship (FOP) — and registering it properly with legal protection. FOP or LLC: What’s the difference? FOP (Sole Proprietor) — most common for small businesses, freelancers, e-commerce, and services. ✅ Benefits: Easy registration and reporting Flat tax options available Minimal paperwork ❗ Limitations: Full liability with personal assets Restrictions on business types and number of employees LLC (Limited Liability Company) — ideal for medium businesses, partnerships, B2B operations, and public tenders. ✅ Benefits: Limited liability for owners Ability to split shares and profits Greater trust from banks and partners ❗ More complex reporting and bureaucracy FOP Registration Requirements: Passport and tax ID Select business activity codes (KVEDs) File an application (online or via Admin Center) Register with the tax office (choose general or simplified system) 📌 Note: Since 2024, FOP registration is available through Diia — but without legal advice, incorrect KVEDs or tax groups are common mistakes. LLC Registration: Key Considerations: Company name Legal address (can be rented) Charter capital (can be added gradually) Founders and share structure Director and KVEDs Articles of association or template charter File documents with notary, Admin Center, or online ⚠️ Common mistakes: poor charter, unclear director powers, no shareholder agreement — these can cause legal issues later. Taxation Options: FOP: Group 1: up to UAH 1.5M/year, no employees Group 2: up to UAH 8.2M/year, up to 10 employees Group 3: up to 1167 minimum wages/year, no employee limit LLC: General system: 18% corporate tax Simplified tax: 3% (with VAT) or 5% (without VAT) for eligible sectors Why choose WINNER Law Firm? 📍 WINNER has extensive experience helping both startup founders and seasoned entrepreneurs. Our team will: Recommend the optimal legal structure Draft all corporate documents Register your FOP or LLC end-to-end Assist with bank account setup, tax registration, and KVED selection Protect you from costly legal and tax errors Conclusion: How to Start Safely?         Business registration is the foundation of your company’s legal safety and reputation. Mistakes at this stage can lead to serious losses later.🔹 Don’t risk it — trust WINNER Law Firm with your business launch. 📞 Contact us today and start your business the right way — confidently and legally! https://youtu.be/J9EOsCgwkfQ?si=J972l_wqXeTf25aH

     Risks of Creating a Centralized Register of Ukrainian Accounts and Safes-Key Warnings Finance Minister Serhii Marchenko has announced plans to establish a centralized register of bank accounts and individual safe deposit boxes belonging to private individuals in Ukraine. While this step is required for joining the Single Euro Payments Area (SEPA), it carries significant risks to financial security and personal privacy. Main risks of the register: Violation of banking secrecy: Even if the register does not include account balances or transaction history, the centralization of such information increases the risk of data leaks or unauthorized access. Potential for abuse: Law enforcement and financial authorities will have access, which could result in excessive control, unjustified inspections, and potential misuse of power. Insufficient personal data protection: With rising cyber threats, limited access alone does not guarantee full security of your financial information. Why it matters for businesses and individuals:This register poses particular risks for high-net-worth individuals and entrepreneurs. Increased transparency may trigger additional audits, account freezes, and restrictions — negatively impacting financial stability and business operations. Recommendations from WINNER Law Firm: Seek legal advice for a comprehensive risk assessment and protection of your rights. Conduct a financial audit and prepare for potential inspections or account freezes. Monitor legal changes and implement stronger data protection measures. Conclusion:Establishing a centralized register of accounts and safes is not just a move toward EU integration — it is also a serious challenge to the security, privacy, and financial stability of citizens and businesses. It is essential to act cautiously and enlist the support of experienced legal professionals like the WINNER team to minimize risks and safeguard your interests. 👉 A link to a video lecture by Maksym Bahniuk, Head of Tax and Customs Practice, on how to act during inspections, is available below.     https://youtu.be/rEd6me-Ume4?si=JV6oGflXaUFN5V0v

     Tax authorities added over UAH 234 million; State Audit Office intensifies oversight of public procurement In 2025, Ukraine’s pharmaceutical industry came under dual pressure from regulatory bodies. The State Tax Service (STS) has significantly ramped up audits, resulting in over UAH 234 million in additional tax assessments for leading pharmaceutical companies. At the same time, the State Audit Office has expanded checks on public procurement entities, including within the pharma sector. Tax audits and their consequences:      In 2025, STS plans over 4,700 audits — almost 1.5 times more than last year. Large and medium-sized companies and private entrepreneurs are under special scrutiny. Authorities are reviewing not just tax compliance, but also labor and currency law adherence. The audit period now exceeds six years due to the wartime suspension of the statute of limitations. Over UAH 234 million has already been reassessed. Serious violations trigger referrals to law enforcement, resulting in criminal proceedings, searches, and account freezes. Parallel checks by the State Audit Office:      Alongside tax pressure, the State Audit Office is intensifying control over public procurement. In 2025, the Cabinet expanded its powers: auditors can now conduct checks not only for routine reasons but also if there’s a justified need — for instance, splitting procurements to avoid open tenders or failing to use e-catalogues or localization rules. In just the first 5 months of 2025, the Eastern office conducted 289 monitoring reviews and 34 procurement inspections. Searches and criminal proceedings:     Amid the audits, law enforcement also searched leading companies like Farmak, Darnytsia, and Arterium. Investigations involved documents related to distributor partnerships. Company representatives emphasized transparency and cooperation with authorities, but the searches show the government’s serious approach to compliance enforcement. Additionally, the Prozorro system now includes new risk indicators (“red flags”) to automatically identify suspicious procurements. This helps auditors react faster and reduce corruption risks. Recommendations for pharmaceutical businesses:  Given the increased scrutiny, pharmaceutical companies and public buyers should proactively prepare — conduct internal audits and consult legal professionals. WINNER Law Firm has deep experience supporting audits, appealing STS findings, unfreezing accounts, defending businesses in criminal cases, and advising on procurement. Conclusion:Mass audits, tax surcharges, searches, criminal cases, and tighter procurement controls — this is the new norm. Businesses must be proactive, compliant, and legally protected.👉 Find the video lecture below by Maksym Bahniuk, Head of Tax & Customs Practice, on how to act during inspections.   https://youtu.be/rEd6me-Ume4?si=YRzbvtI_3CxLNnCS

Verkhovna Rada Legalized Multiple Citizenship: What Will Change for Ukrainians and How to Get Legal Help On June 18, the Verkhovna Rada of Ukraine passed Law No. 11469 in its entirety, allowing Ukrainians to hold multiple citizenships. The law received support from 243 MPs. This means millions of Ukrainians living abroad will now be able to officially retain their Ukrainian passports even if they acquire the citizenship of another country included on a special list to be approved by the Cabinet of Ministers. Key provisions of the law: Possibility of holding multiple passports: Ukrainians will be allowed to be citizens of other countries without losing their Ukrainian citizenship — as long as the other country is on the list approved by the Cabinet. Exceptions: The law excludes multiple citizenship with aggressor states (e.g., Russia) or countries that do not recognize Ukraine’s territorial integrity. Voluntarily acquiring such citizenship will result in the loss of Ukrainian citizenship. For diaspora and new citizens: The law simplifies the process of acquiring Ukrainian citizenship for ethnic Ukrainians, individuals facing political persecution, and foreigners serving in the Armed Forces of Ukraine. Only Ukrainian citizenship recognized in Ukraine: In legal relations with the state, a person is considered solely a Ukrainian citizen, even if they have multiple passports. Restrictions for officials: Public servants and judges are prohibited from holding multiple citizenships. Exams for new applicants: Citizenship applicants must pass exams on the Constitution, Ukrainian history, and language. How the system will work: List of countries to be approved by Cabinet: Recognition of multiple citizenship depends on whether the other country is on the list created by the Ukrainian government. Loss of citizenship: Voluntarily obtaining the citizenship of a country not on the list will lead to automatic loss of Ukrainian citizenship. Declaration for existing dual citizens: If you already hold a second passport and the country is on the list, you can file a declaration recognizing yourself as a Ukrainian citizen. Practical guidance and legal advice: Follow updates: The Cabinet still needs to publish the official list, so it’s important to check for updates before applying for foreign citizenship. Legal support: If you already have a second passport or plan to apply for another citizenship, consult lawyers who specialize in citizenship law. They will help you navigate the process and prepare the necessary documents. New administrative services: New services will become available — such as filing declarations, consultations regarding the list of countries, and document support. Have questions? WINNER Law Firm provides consultations on the legalization of multiple citizenship, assists with document preparation, and supports clients in communication with authorities. When will the law take effect?          The law will come into force six months after its official publication. The Cabinet must use this time to adopt by-laws and finalize the list of approved countries. Summary:The possibility of multiple citizenship is a step toward modern legal standards, support for the Ukrainian diaspora, and new opportunities for citizens. If you have questions or need help with documentation, contact the experts at WINNER — they’ll make sure everything is handled correctly and efficiently. https://youtu.be/J9EOsCgwkfQ?si=6FY4L7O1j8P8CRrU

       Starting from August 28, 2025, the Law of Ukraine“On the Specifics of Regulating the Activities of Legal Entities of Certain Organizational and Legal Forms During the Transitional Period and Associations of Legal Entities” (dated January 9, 2025 No. 4196-IX) will come into force, introducing new rules for a number of legal entities during the transition. The abolition of the Commercial Code of Ukraine (effective until August 28, 2025) will discontinue several organizational and legal forms that define the legal status of state and municipal enterprises. ⚠️ From now on, it will be prohibited to establish new legal entities in the following forms (Art. 13): state enterprise (commercial, non-commercial, state-owned); municipal enterprise (commercial or non-commercial); joint municipal enterprise; private enterprise; foreign enterprise; subsidiary enterprise; enterprises of civic associations (religious organizations, trade unions); consumer cooperative enterprises. Also prohibited: assigning property rights to such legal entities under economic control or operational management (Art. 11, 12). These articles will become void 3 years after the Law takes effect — i.e., from August 28, 2028 (!) Transitional provisions (Art. 14):📍 From August 28, 2025, within 6 months: Founders or authorized management must decide on liquidation (except for non-commercial or state-owned entities); Local authorities may terminate municipal enterprises they fully own. ❗️ Articles 13 and 14 do not apply to public railway companies being reorganized into the JSC “Ukrainian Railways”. State and municipal enterprises can be: liquidated or transformed into: Type of Enterprise Transformation Options State Commercial Enterprise JSC/LLC (100% state-owned); State Non-Profit State-Owned Enterprise JSC/LLC (100% state-owned); State Non-Profit Municipal Commercial Enterprise JSC/LLC (100% owned by the municipality); Municipal Non-Profit Joint Municipal Enterprise JSC, LLC, or Municipal Non-Profit with proportional ownership ❗ For other types of enterprises (subsidiary, foreign, civic associations, cooperatives, private enterprises): From 28.08.2025 — the Law “On LLCs and JSCs” applies (unless otherwise regulated); From 28.08.2028 — conflicting statutory provisions become invalid. 📌 As of August 28, 2028, changes to the State Register will only be allowed for: liquidation or transformation; changes in managers/liquidators; transfer of assets to the State Property Fund; bankruptcy proceedings. 🏛 WINNER Law Firm — one of the leading law firms in Ukraine in the field of commercial law and litigation. We deeply understand business legal relations, participate in landmark cases, shape judicial practice, and help businesses navigate legal uncertainty. 🔎 We’ll advise you on: what to do after the Commercial Code is repealed; which contracts and internal documents need revision; how to avoid legal risks and regulatory gaps. 💬 Contact us — we’re here to explain, protect, and support.WINNER — legal support that delivers results. https://youtu.be/J9EOsCgwkfQ?si=ME-dkfVhVY0j0evw

Due diligence is a process of thorough, comprehensive analysis of a company’s operations, financial health, and market position. Due diligence includes: analysis of all enterprise assets with a check of legal “cleanliness”, obligations, and financial/legal status; in-depth diagnostics to assess the business and financial health and identify sources of funding for restructuring or investment; audit support based on qualitative and quantitative indicators, management systems, and internal controls; systemic business evaluation aimed at minimizing investor risks by identifying and addressing vulnerabilities. Purpose:To provide a complete and objective picture of the financial condition and potential risks to ensure future efficient operations. Types of due diligence:general, financial, legal, tax, operational, technological, environmental, marketing, managerial, etc. Legal due diligence types: contract party verification; asset/property examination; audit of individual contracts; due diligence of companies or specific business units. Stages: Preparation (setting goals, planning scope); Information gathering; Analysis and inspection; Reporting and presentation. Difference from legal audit:        Due diligence is broader in scope and goal, includes forward-looking analysis, and often encompasses legal, financial, and operational assessments. Legal due diligence scope includes:      review of founding documents, property and IP rights, debt obligations, regulatory compliance, corporate history, and litigation risks. The law firm WINNER has a team of experts in financial investigations, tax, legal, and financial audits, and will professionally conduct DUE DILIGENCE for you. https://youtu.be/cy8gqgW0490?si=GwP7mH45y2i7E1y7

Criminal Liability for False Declarations: New Changes Key Update   On June 17, 2025, the Verkhovna Rada of Ukraine adopted draft law No. 13271-1, which increases the threshold for criminal liability for false declarations from UAH 1.5 million to UAH 2.27 million. What Has Changed? Previously, administrative liability applied if the declared data differed from actual data by UAH 302,800 to UAH 1,514,000, and criminal liability applied above UAH 1.5 million. Now, administrative liability applies for discrepancies from UAH 454,200 to UAH 2,271,000, and criminal liability — for discrepancies over UAH 2.27 million. Reasons for the Changes     The main reason is inflation and devaluation of the hryvnia, which affects the real value of declared assets. According to NABU representatives, the new threshold reflects economic changes, though it may result in closure of some criminal proceedings. Additional Amendments Criteria for both false declarations and illicit enrichment have been updated. The law improves pre-trial investigation procedures and closes gaps in storing data on corruption offenses. Recommendations from WINNER Law Firm      Given the legislative updates, we recommend that officials and businesses: Update internal financial control policies. Check the accuracy and completeness of their declarations. Consult legal professionals for risk analysis and compliance support. The WINNER Law Firm is ready to provide legal advice and help you avoid administrative or criminal liability in line with the new requirements. Contact WINNER — your reliable partner in anti-corruption compliance and legal protection! https://youtu.be/5kQ73atNbDg?si=KtMgvGz1QnubtpIE

A new draft law regarding the taxation of income received through digital platforms like OLX, Prom, and Rozetka is being actively discussed in Ukraine. The public has many concerns about this potential “OLX tax” and how it may affect ordinary individuals selling personal belongings. Let’s break down the details and share legal advice from the Winner team. Essence of the Draft Law: The Cabinet of Ministers has submitted a bill to Parliament introducing a new taxation procedure for digital platforms. These platforms will be required to report all user transactions and withhold taxes from sellers of goods and services. A proposed tax of 5% personal income tax (PIT) plus 5% military levy — totaling 10% of the income received through platforms. Who Is Affected: Not only entrepreneurs but also individuals who sell goods, rent out property or vehicles, or provide services through platforms. For occasional, non-systematic sales of personal items, a tax-free threshold is proposed. Risks and Legal Nuances: If an individual conducts more than 3 sales per year or earns more than €2,000, they must open a separate bank account to receive platform payments. Failure to comply may result in a higher tax rate — up to 23% (18% PIT + 5% military levy). Businesses operating on platforms without registration will be subject to mandatory taxation. What to Expect Next: The Parliamentary Committee on Finance promises to protect regular citizens who occasionally sell their belongings. The bill is still being finalized, and specific rules may change, including the tax-free limit and sale frequency criteria. Legal Advice from Winner: Verify your information — the final law has not yet been adopted. Evaluate your activity — if sales become systematic, taxes may apply. Open a separate account if you exceed 3 sales or €2,000 annually. Contact a lawyer — the Winner team is ready to help you assess your risk and handle tax documentation. Conclusion:Taxation of online sales is still being legislated. If you’re unsure about your case or want to minimize risks, reach out to the Winner legal team — we are always on your side. https://youtu.be/rEd6me-Ume4?si=RgsucMpHFewcs-Iu

     Ukrainians who work or receive income abroad must remember: such income is also subject to taxation in Ukraine. Under current legislation, foreign income must be taxed at 18% personal income tax (PIT) and 1.5% military levy — but only for income received before January 1, 2025. If the income was received in foreign currency, it must be converted into hryvnia at the official NBU exchange rate on the date of receipt. Important: all foreign income must be declared by May 1 of the year following the reporting year. To avoid double taxation, if you’ve already paid taxes abroad, you need to obtain an official tax certificate from the foreign tax authority and have it legalized (e.g., via a consulate). If a double taxation treaty exists between Ukraine and the country in question, the tax paid abroad will be credited in Ukraine, and you won’t have to pay again. If the foreign tax rate is lower than the Ukrainian rate, you’ll need to pay the difference. If you’re unsure how to properly declare your income, obtain the right documents, or navigate international tax rules — don’t risk your peace of mind or finances. WINNER Law Firm will help you understand every tax detail, prepare all documents, and protect your interests before the tax authorities. ✅ Trust the professionals — and keep your finances secure! https://youtu.be/rEd6me-Ume4?si=jlb3qpkvPUV4DNx0