Author name: admin

The State Tax Service Tracks Payments How the STS tracks payments through financial companiesThe State Tax Service (STS) of Ukraine receives data on money transfers via financial companies. All non-bank financial institutions must report every transaction, including the recipient’s details. Thus, the tax authority has full access to transfer information and can identify individuals who regularly receive funds. Lack of business registration: how the STS finds out about such paymentsIf a private individual frequently receives payments (e.g., for selling goods via Nova Poshta), this data is automatically transmitted to the STS through the fiscal receipt system. The STS analyzes these transfers and can identify those conducting regular business activities without registering as a sole proprietor or business entity. What does “systematic activity” mean in business?According to Part 1, Article 42 of Ukraine’s Commercial Code, entrepreneurship is independent, proactive, and systematic activity aimed at earning profit.“Systematic” means repeated actions for profit. The law doesn’t define an exact number, but court practice (Resolution of the Plenum of the Supreme Court of Ukraine from 25.04.2003 No. 3) defines:An activity performed at least three times in a calendar year is considered systematic and qualifies as business. Liability and fines for unregistered business activityAccording to Article 164 of the Code on Administrative Offenses: Fine from UAH 17,000 to 34,000, with possible confiscation of goods, equipment, or money earned from the offense; Repeat offense within a year — fine from UAH 34,000 to 85,000 with mandatory confiscation. Appealing a fineSTS fines can be appealed administratively (within the tax authority) or in court. A complaint must be submitted within 10 days, and the STS must consider it within 20 days. If unsatisfied, the individual may file a lawsuit in administrative court within 6 months. Important notes One-time sale of personal used items is not considered business and is not taxed. Repeated sales, even of used goods, are taxable and may lead to penalties. The STS recommends registering officially and using certified cash registers (RRO/PRRO). Conclusion:If someone conducts three or more sales through NovaPay/Nova Poshta without registering as a sole proprietor, the STS has legal grounds to consider this business activity, calculate taxes, and impose fines. These fines can be challenged. If you’ve encountered similar situations — it’s worth discussing them in advance. Often, one timely consultation can prevent a host of problems.WINNER LAW FIRM is one of Ukraine’s leading firms in tax, criminal, administrative, commercial law, and litigation.Contact us: 067-755-55-13   https://youtu.be/9Xtga5DQFWk?si=6wJG5fjS0f4u_01Z

The Tax Service steps up inspections of private enforcement officers: key areas of focus in 2025In 2025, the State Tax Service of Ukraine (STS) resumed scheduled tax audits, which also affect private enforcement officers — self-employed individuals engaged in independent professional activity. The updated audit schedule has been in effect since March 28, 2025, and may be revised throughout the year. After a long moratorium, tax authorities regained the right to audit tax periods starting from 2017. This is due to the suspension of the statute of limitations during quarantine restrictions: the 1095-day audit window began counting from March 2020. As a result, private enforcement officers must be prepared for a thorough review of their recent years’ activities. Main areas of focus during tax audits in 2025:• Timeliness and completeness of income declarations.• Accuracy in tax calculation and payment (personal income tax, unified social tax).• Proper bookkeeping of income and expenses.• Timely submission of tax reports.• Special focus on documented evidence of transactions, actual performance of actions, and the legitimate purpose of financial operations. The tax authority’s main concerns include the justification of expenses, authenticity of business transactions, proper accounting of assets and liabilities, and compliance with tax policy regulations. Takeaways for private enforcement officers:• Monitor updates to the STS audit schedule and prepare all documents verifying income and expenses.• Ensure transparency in business operations and strict compliance with the Tax Code.• If tax violations are identified, financial sanctions may follow — it’s advisable to conduct a preventive internal audit and eliminate potential risks in advance. 2025 will be marked by increased scrutiny of private enforcement officers’ tax discipline. Experts recommend preparing early and responding promptly to tax authority requests. It is advisable to consult legal professionals as soon as you receive a request from the STS, as communication is unlikely to end with just one notice.If you’ve encountered similar situations — it’s worth discussing them in advance. Often, one timely consultation can prevent a host of problems.WINNER LAW FIRM is one of Ukraine’s leading firms in tax, criminal, administrative, commercial law, and litigation.Contact us: 067-755-55-13 https://youtu.be/9Xtga5DQFWk?si=rJUgKeTbhckB-tOp

Do You Need to Register a Trademark: Arguments, Benefits & RisksA trademark (TM) is a unique designation (name, logo, slogan, color scheme, etc.) that identifies the goods or services of one business and distinguishes them from others. In Ukraine, trademark registration is not mandatory for most types of businesses, but it provides significant advantages and protects your brand from risks. When registration is mandatory: Required only for alcoholic products to obtain a license. In other sectors — it’s a right, not a requirement. Main benefits of trademark registration: Protection from competitors Legal use and business development Increased brand recognition and customer trust Access to international markets Risks of not registering: No legal protection Competitors may take over your brand Limited ability to expand Who should register: Businesses with long-term strategy Creators of unique products Those planning global expansion ConclusionTrademark registration is not mandatory, but it’s a smart move for brand growth.WINNER Law Firm can help you register and protect your mark.Contact: +38067-755-55-13 https://youtu.be/9Xtga5DQFWk?si=jUBQbBU_rgSlO67l

Eskulab. Corporate War. Why It Must Be Prevented!?Legal Analysis Based on the “Eskulab” Case A serious corporate conflict is not just an internal issue of a company but a significant threat to its stability, reputation, financial security, and even business continuity. The situation around “Eskulab” clearly demonstrates the large-scale negative consequences caused by the lack of effective legal safeguards and the improper resolution of disputes between co-owners. Legal Risks and Consequences of Corporate Conflict Management Paralysis and Operational BlockageA serious conflict between company participants often leads to the blockage of key management decisions, loss of financial control, inability to pay salaries or meet obligations to contractors. This jeopardizes jobs and the company’s business reputation. Risk of Raiding and AbuseIn the heat of conflict, one of the parties may resort to force or legal manipulation: changing the charter, blocking access to the office or bank accounts, involving security firms or even aggressive actors. The absence of clear procedures in corporate documents facilitates such actions. Litigation Costs and DelaysLegal proceedings over corporate disputes are lengthy, expensive, and public. They often involve the freezing of corporate rights, blocking of assets, negative media exposure, and significant legal expenses. Losses to Business and InvestorsCorporate conflicts frequently lead to the loss of clients, partners, and investors — and sometimes even to bankruptcy. This is particularly dangerous for businesses in sensitive sectors like medicine or finance. Based on our extensive experience in commercial, corporate, procedural law, litigation, mediation, and business security, we offer several key legal tools for preventing and resolving conflicts that will significantly improve your chances of preserving your business: Corporate Agreement — clearly written rules of interaction, decision-making procedures, exit terms, deadlock resolution mechanisms, and the duties and responsibilities of the parties are the main preventive tools against conflict. It is essential to include: voting procedures; conditions for share buyouts; dispute resolution mechanisms (Russian roulette, Dutch auction, independent arbitrator); Mediation and NegotiationPre-trial resolution involving a mediator or independent expert helps preserve the business and minimize reputational risks. Negotiation is always simpler, cheaper, and more effective than litigation. Internal Resolution ProceduresThe charter, shareholder agreements, and internal regulations must include clear algorithms for actions in the event of a dispute: convening meetings, conducting audits, management changes, profit distribution, etc.; Legal Audit and SupportRegular legal audits of corporate documents and management actions, and the involvement of external consultants to assess risks and prevent abuse, are essential elements of business protection. Importance of Comprehensive Business SecurityBusiness security is a systematic approach to protecting a company from both external and internal threats — including corporate conflicts, raiding, fraud, and data breaches. It is critical to integrate business security at every stage — from company formation to scaling and day-to-day operations. Comprehensive business security includes: risk and threat monitoring; due diligence of counterparties and partners; protection of corporate information; enforcement of internal procedures; timely response to suspicious actions or changes in ownership structure; Ignoring business security significantly increases the likelihood of crisis situations, including corporate conflicts, which can lead to asset loss or even business failure. Our ConclusionA serious corporate conflict is always a threat to a business, regardless of its size or industry. Legal prevention, clearly regulated relationships, systematic business security, and timely involvement of professionals are the only way to preserve your company, its assets, and its reputation. The “Eskulab” case is a vivid example of how neglecting legal mechanisms for corporate dispute resolution and business security can destroy even a successful business. If situations like these sound familiar — it’s worth discussing them in advance. Often, one timely consultation can prevent a multitude of problems. Sincerely,Head of Commercial and Corporate Law Practice Legal company Winner,Attorney Svitlana Krutorohova+38 (050) 302 97 94 https://youtu.be/OquKhyVsiXs?si=7xJI0Ywm3aitA2F6

In 2025, Ukrainian businesses are operating in a state of constant turbulence. Despite having adapted to martial law conditions, entrepreneurs face new challenges daily — both from the state and the external environment. Below are the key problems shaping the business agenda in Ukraine today. Return of Tax PressureFollowing the cancellation of the moratorium on tax audits, the State Tax Service has resumed active control measures. The number of criminal proceedings under Article 212 of the Criminal Code of Ukraine (tax evasion) is growing, tax invoices are being blocked, and fines for formal violations are on the rise. Currency Restrictions and Lack of FinancingBusinesses face difficulties with international transactions, transferring funds abroad, and attracting investment. Lending remains limited, and the cost of financial resources is increasing. Companies are forced to operate under strict currency regulation. Unpredictable LegislationUkrainian laws are frequently and unpredictably changing. Tax, labor, and customs regulations are being updated urgently, placing additional pressure on corporate lawyers and accountants. Public procurement remains a particularly high-risk area. Shortage of Qualified PersonnelDue to relocation, mobilization, and emigration of skilled workers, Ukrainian businesses are increasingly facing a shortage of staff. The situation is further complicated by intense competition for talent and challenges in ensuring continuity of operations. Infrastructure RisksDue to attacks on the energy infrastructure, businesses experience power outages, logistical issues, and disruption of production cycles. Security remains a top priority for most companies. Bureaucracy and Corruption RisksIncreased pressure from regulatory authorities, delays in budget payments, and extensive documentation requirements are escalating the administrative burden. Businesses are forced to spend resources not on development, but on constant “paperwork battles.” Despite all the challenges, Ukrainian businesses continue to operate, adapt, and support the country’s economy. However, stable development requires clear and predictable rules of the game.And in today’s reality, legal advice and professional support are essential.As the modern version of an old saying goes:“Until the search (or inquiry) strikes — the entrepreneur won’t seek legal advice.” With respect,Managing Partner of WINNER Law Firm — Ihor Yasko📞 Phone: +38 (067) 755-55-13 https://youtu.be/22i5j-Q7tRE?si=O3sC0UApuL0tsbAj

Criminal Proceedings Grounds for initiating criminal proceedings under Article 212 of the Criminal Code of Ukraine: modern approach and high-profile examples Key grounds for initiation: A criminal case under Article 212 (“Tax evasion”) may be registered based on the following grounds: non-payment of taxes in significant, large, or especially large amounts. As of 2024, the threshold for liability under Part 1 of Article 212 is over UAH 4.5 million; intentional nature of actions — the investigation must prove that the evasion was deliberate, not due to an error or negligence; actual non-receipt of funds by the budget after the due date — this is when the crime is considered completed; a tax notice-decision is not mandatory — the Bureau of Economic Security (BES) registers proceedings even on the basis of a statement or analytical report. A tax audit report is evidence, but the notice-decision is not always required; BES or State Tax Service analytics — since 2023, grounds can include suspicious transactions, abnormal cash flows, tax minimization schemes, etc.; report, statement, or independent discovery of signs of a crime by an investigator or prosecutor; subject of the crime — official, sole proprietor (FOP), or anyone with a tax obligation. How analytical grounds work: BES and the Tax Service use analytical tools to detect: fictitious transactions (e.g., VAT “skrutka” schemes, chains of shell companies, FOP misuse in business); understatement of the tax base; discrepancies between actual activity and declared income; schemes using front persons or companies. Analytical reports allow entries in the Unified Register of Pre-Trial Investigations (URPTI) even without a formal complaint or audit results. High-profile cases from 2024–2025: “Cash-out king” and retail networks.In 2025, BES completed an investigation into company executives who helped retail chains evade taxes. Amount: UAH 764 million. Scheme: VAT understatement, fictitious firms. Case sent to court. Organized group from Kyiv — UAH 45 million.In 2024, Sviatoshynskyi District Court considered a case against a group that used fake firms. After paying debts, they were released from liability. Excise tax and corporate income tax — UAH 3.4 billion.In H1 2024, damages of UAH 3.4 billion were compensated. Companies avoided excise and profit tax — exposed through BES and Tax Service analytics. Chernivtsi region — 250 entrepreneurs.In 2024–2025, over 250 entrepreneurs were found to be evading taxes. The core evidence — tax service analytics. Conclusion: Criminal cases under Article 212 can be registered not only based on audits or complaints but also via modern analytical tools used by BES and the Tax Service. Recent years’ cases prove the effectiveness of this proactive approach — resulting in arrests, fines, and millions in recovered damages. The biggest paradox: you might have no tax debt — yet still face tax evasion charges. In 2025, there’s no room for complacency. If you’ve encountered similar issues — let’s talk in advance. One timely legal consultation can save you from serious problems. “WINNER” LAW FIRM — one of Ukraine’s leading firms in tax, criminal, administrative, commercial law, and litigation. Yasko Igor-Managing Partner of WINNER Law Firm 📞 Contact: +38 (067) 755-55-13 https://youtu.be/9GshO01cruo?si=X5V_neMrMUZi9qYi

Grounds for Registering Criminal Proceedings under Article 191 of the Criminal Code of Ukraine The basis for opening criminal proceedings under Article 191 of the Criminal Code of Ukraine is the establishment of facts of embezzlement, misappropriation, or unlawful possession of property by an official. Registration is allowed based on various reports received from any source, provided they contain information about a possible crime. These may include: statements from individuals, victims, or representatives of legal entities regarding suspected embezzlement or misappropriation; reports from employee groups, trade unions, or NGOs; internal audit or inspection reports from company staff; investigative journalism or media publications with factual allegations; official reports and analytical memos from law enforcement agencies. According to Article 214 of the Criminal Procedure Code, the investigator or prosecutor must enter the information into the Unified Register of Pre-trial Investigations within 24 hours of receiving such a report. Refusal to accept and register a criminal complaint is not allowed. Recently, authorities have begun holding not only officials accountable but also those who exert influence over company leadership. Such influence is determined through covert investigative actions. In 2024, several cases under Article 191 were submitted to courts. In 46 cases, property was confiscated as punishment; in 12 cases, special confiscation was applied — totaling over UAH 158 million. Most of these cases involved corruption in education, construction, and public procurement. LEGAL COMPANY “WINNER” is among Ukraine’s leading firms in tax, criminal, administrative, and commercial law.📞 Contact: +38067-755-55-13 https://youtu.be/9GshO01cruo?si=kq9nuDLOkapDfCpX

Which Business Structure to Choose: LLC or Sole Proprietorship (FOP)? Choosing between an LLC (Limited Liability Company) and an FOP (individual entrepreneur) is one of the most important decisions for a new entrepreneur in Ukraine. Both forms have their pros and cons and are suited for different goals and business scales. Let’s explore the key aspects to help you make the right choice. Key Differences Between LLC and FOP: FOP (Sole Proprietor) is an individual officially registered as an entrepreneur. They operate independently, pay taxes, and bear full liability for business obligations with all personal assets. FOP registration is simple, requires no charter capital or complex documentation. Reporting and taxation are minimal, especially under the simplified tax system. FOP is ideal for small businesses, freelancers, consultants, artisans, and beginners. LLC is a legal entity that can be established by one or multiple individuals (up to 100 participants). Members are liable only within their contributions to the charter capital, so personal assets are not at risk. Forming an LLC requires preparing a charter, holding a founding meeting, depositing capital, and going through a more complex registration. LLCs must maintain full accounting, submit financial reports, and follow corporate governance rules. When to Choose FOP: FOP is a great option if you plan to work alone or with a small team, your income fits within simplified tax limits, and you’re not seeking investors. It’s suitable for low-risk activities where personal liability isn’t critical. Advantages: easy setup, low costs, simple reporting, and remote work capabilities. However, FOPs bear full liability for business debts, including personal assets. Larger companies and international partners are often reluctant to work with FOPs. As turnover grows, you may need to change your business form. When to Choose LLC: LLC is ideal for those planning to grow a medium or large business, attract investors, partners, or co-founders. It allows share distribution, participant changes, business scaling, and builds trust with clients, banks, and public institutions. Key advantage: limited liability — participants risk only their contributions. LLCs are suitable for businesses with a large team, complex management structures, or plans for international expansion. Downsides include more complex and costly registration, full accounting requirements, regular reporting, and higher administrative costs. https://youtu.be/J9EOsCgwkfQ?si=E80DSQwbDitRS3c3

The State Tax Service of Ukraine has intensified monitoring of online sales and started sending letters to individuals receiving money transfers.These letters are being sent to those who regularly sell goods via online platforms (such as OLX) and accept payments to personal bank cards through services like NovaPay. The basis for this is the detection of business activity without registering as an individual entrepreneur (FOP) and without paying taxes. What is the tax authority doing?They require the person to appear at a local tax office to explain the origin of the funds. In some cases, an administrative offense protocol may be issued. Who is at risk of liability?• If someone sells goods online only a few times per year, this is not considered business activity.• However, if sales are regular (three or more times), the individual must register as an entrepreneur (FOP) and pay taxes.• Such income must be declared in the annual tax report, and the total tax burden is 23% (18% personal income tax + 5% military levy). How to avoid penalties:• Officially register as a private entrepreneur (FOP) if you engage in regular online sales.• Declare your income and pay taxes on time.• Conduct an audit of your financial transactions and prepare documents that prove the legal origin of the funds. The tax service is tightening its controls. Ignoring their requests may lead to administrative or even criminal liability.If you receive a request or call from the tax inspector — seek professional legal assistance immediately. Otherwise, you risk losing your case.   https://youtu.be/J9EOsCgwkfQ?si=vL78eP2IKJyC7ki5

Starting June 1, 2025, new limits will apply to card-to-card transfers in Ukraine. The maximum amount for such transactions per person without confirmed income will now be 100,000 UAH per month. It’s important to note that this is not a separate resolution or law by the National Bank of Ukraine (NBU), but rather the result of joint agreements between the regulator, leading banks, and financial associations, formalized in a Memorandum on Payment Market Transparency. What changed?Previously, there was a temporary limit of 150,000 UAH per month established by an NBU resolution, which expired on March 31, 2025. Now, banks are guided by the Memorandum — not a legal act, but supported by nearly all major market players. The new 100,000 UAH limit applies to clients with low and medium risk levels who have not submitted official income confirmation. For high-risk clients, the limit is even lower — 50,000 UAH/month. If you submit income documents, your bank can set an individual limit based on your actual earnings. Who will be affected?According to banks, the majority of Ukrainians won’t be significantly impacted, as 98% of clients don’t transfer such sums monthly. However, the changes may affect those who actively transfer funds between individuals — such as entrepreneurs, freelancers, and volunteers. For volunteers and clients with confirmed income, limits may be revised. Why does it matter?The main goal of the new rules is to make the payment market more transparent, fight tax evasion and money laundering. Banks now have more tools to monitor suspicious transactions, and clients have the opportunity to verify their income and receive higher limits. What to do if you need a higher limit?If you regularly send or receive large amounts, contact your bank and provide income documents. This allows your bank to increase your limit in line with your actual financial capacity. Summary:Starting June 1, 2025, the standard limit for card-to-card transfers will be 100,000 UAH/month. This is part of the NBU and banks’ broader effort to enhance transparency in financial transactions. If you need a higher limit — confirm your income with your bank. https://youtu.be/_V4h9z3wscM?si=6MNnsuTlFzw9gMZH