National Bank of Ukraine adopts resolutions on terms of payment for exports and imports and sale of foreign exchange earnings

On May 14, 2013 the National Bank of Ukraine adopted the Resolution “On the change of terms of payment for transactions of exports and imports of goods and mandatory sale of foreign exchange earnings” No. 163 and the Resolution “On the determination of the amount of compulsory sale of foreign exchange earnings” No. 164.

According to the Resolutions, the National Bank of Ukraine has extended the currency control restrictions for a period of six months, i.e. from May 19, to November 19, 2013 as follows:

  • Settlement with respect to transactions related to export and import of goods shall be made within a period not exceeding 90 days;
  • Residents of Ukraine are obliged to make a mandatory sale of 50% of revenues in foreign currency on the foreign exchange market of Ukraine received on the basis of foreign trade contracts if such foreign currency belongs to Group 1 classifier or is in Russian rubles;
  • Foreign currency, which belongs to Group 1 classifier, and is in Russian rubles, which goes to individuals (residents and non-residents) in the amount equal to or greater than the equivalent of 150 thousand Hryvna per month, is subject to mandatory sale on the foreign exchange market of Ukraine.

Court practice

On February 19, 2013 the Kharkiv Appellate Administrative Court issued a court writ with respect to the case No. 820/486/13-a.

By mentioned court writ the administrative court of appeal upheld the decision of the Kharkiv District Administrative Court and thus recognized the right of a taxpayer who has made an overpayment of corporate profit tax to consider this overpayment on account of advance payments of corporate profit tax (introduced on January 1, 2013).

It should be noted that the administrative court of appeal first and foremost was guided by regulations of Clause 87.1 of Article 87 of the Tax Code of Ukraine, which provides that “the payment of monetary obligations or repayment of tax debt of a taxpayer with respect to particular payment may also be made by overpaid amounts of such payment (without an application from a taxpayer).”