Hostilities territories list remains “undefined”

It has been more than half a year since the Ukrainian-Russian war broke out, but the state has not yet officially determined the list of territories where hostilities are (were) being waged and territories temporarily occupied by the armed forces of the russian federation (territories list). Several enterprises, particularly from Chernihiv and Kharkiv Oblast turned to the BOC with this issue. The problem is that without such a list, companies cannot take advantage of a number of tax benefits.
According to the Tax Code amendments, which became effective in March-April 2022, during martial law period and for some time after its over, taxpayers can be temporarily exempted from the assessment of taxes on real estate, land and environmental tax. However, these norms apply to enterprises located in the territories where hostilities are being waged or were previously waged, and/or in the territories temporarily occupied by the armed forces of the russian federation.
Taxpayers from such territories (particularly from currently deoccupied Chernihiv, Zhytomyr, Kyiv, Kharkiv and other oblasts) have the right to partially adjust previously assessed amounts and pay less taxes to the budget in the current year. However, this is hindered by the lack of a defined territories list.
The BOC appealed to the Prime Minister of Ukraine, the Ministry for Reintegration of Temporarily Occupied Territories and the Ministry of Finance as those responsible for the development of the draft list of territories. The Council found out that the Ministry of Defense was to prepare the draft list of territories in the spring, while the Ministry for Reintegration of the Temporarily Occupied Territories in early autumn. Currently, the issue is being worked out collectively by the Ministry of Defense, the Ministry of Internal Affairs, the Ministry of Finance and the Ministry of Communities and Territories Development.
The Council emphasizes that the lack of a list of territories is an obstacle for businesses to use tax benefits in wartime. In October 2022, the Business Ombudsman will again appeal to the Prime Minister of Ukraine to settle the situation.