On Thursday, Ukrainian lawmakers green-lighted amendments to laws no.5501-d, 5502-d, 5503-d that revoked the ‘ free-trade zone’ policy for Crimea.
The law no.5501-d removed a ‘non-resident’ status earlier awarded to Ukrainians residing in Crimea that proved restrictive in payment of tax and duties. The law is amended to make the Ukrainians living in Crimea exempt from state and local taxes.
The law no.5502-d requires domestic businesses operating in ‘temporarily occupied territory’ of Crimea to be registered in ‘mainland’ Ukraine with all business deals with Crimean legal entities now ruled invalid.
It also bans money remittance, credits, e-payments, lottery operators activities, and freight transport operations by Ukrainian businesses in occupied Crimea.
The policy also updates new official regulations for entry of Crimea, offers free legal help for Ukrainians residing in Crimea, and eases inheritance procedures for locals.
The last of the slew of legislative initiatives – law no.5503-d – updates payment of duties in Crimea removing norms that bore references to Crimea ‘free-trade zone’.
Crimea free-trade zone was established by Kyiv for 10 years following Russia’s annexation of the peninsula. The policy brought in special ‘occupational’ taxes, customs, payments services, and budget regulations to cushion Crimean Ukrainians and local legal entities from inevitable legal conflict challenges. Its tax regime imposed a non-resident status for locals and local businesses that regulated ‘occupational’ mode of taxation, customs and payments procedures.