Regarding formation of a list of territories where hostilities are (were) conducted or temporarily occupied by the Russian Federation

On 06.12.2022, the Cabinet of Ministers of Ukraine adopted Resolution № 1364 "Some issues of forming a list of territories where hostilities are (were) conducted or temporarily occupied by the Russian Federation" (hereinafter – Resolution).

By Resolution, the Government established that the list of territories where hostilities are (were) conducted or temporarily occupied by the Russian Federation (hereinafter – list) is approved by the Ministry for Reintegration of the Temporarily Occupied Territories in agreement with the Ministry of Defense on the basis of suggestions from relevant regional and Kyiv city military administrations.

Therefore, the Resolution defines mechanism for forming the unified list of territories where hostilities are (were) conducted or which are temporarily occupied by the Russian Federation. From now on, the only source of information about such territories is Order of the Ministry of Reintegration, approved by the Ministry of Defense and formed on the basis of suggestions of regional military administrations.

New list provides for two gradations of hostilities on the territory: active and possible. A separate section in the list defines occupied territories.

It is important that the new list will be scaled to the level of individual settlements, not communities, as currently defined by the list approved by Order of the Ministry for Reintegration of the Temporarily Occupied Territories of Ukraine № 75 as of 25.04.2022"On the approval of territorial communities located in area of military operations (hostilities) or which are under temporary occupation, encirclement (blockade) as of 24.05.2022".

This principle of forming the list will allow to more effectively solve issue of renewing access to registers. And it will also add flexibility in determining whether or not a certain territory belongs to the temporarily occupied.

Form of the list determines the territory code according to the Codifier of administrative-territorial units and territories of territorial communities and its title, as well as dates of the start and end of hostilities and temporary occupation.  

Reminder! After introduction of the martial law on the territory of Ukraine, introduced by the Decree of the President of Ukraine "On introduction of the martial law in Ukraine" № 64/2022 as of 24.02.2022, approved by the Law of Ukraine "On approval of Decree of the President of Ukraine "On introduction of the martial law in Ukraine" № 2102-IX as of 24.02.2022, Paragraph 69 Sub-section 10 "Transitional provisions" of the Tax Code of Ukraine (hereinafter – Code) was amended with Sub-paragraphs 69.14, 69.16, 69.22 regarding the calculation and payment for land, environmental tax and tax on immovable property other than a land plot, for taxation objects located within territories where hostilities are (were) conducted and territories temporarily occupied by armed formations of the Russian Federation, list of which is determined by the Cabinet of Ministers of Ukraine.

The key condition under which taxpayers have a right not to calculate and not pay taxes during the martial law in Ukraine is the list of territories determined by the Cabinet of Ministers of Ukraine.

Since from now on the Government has delegated authority to develop the list to the Ministry for Reintegration, after approval and official publication of the new list, compiled in compliance with requirements of the Decree, taxpayers will be able to adjust their tax obligations.