[World Tax News] Ukraine Abolishes Several Legal Forms of Entities and More

Editorial Team – [2025] 175 taxmann.com 1018 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week:

1. Ukraine abolishes several legal forms of entities

Ukraine has enacted Law No. 4196-IX, adopted in January 2025, which will come into effect on 28 August 2025. The law repeals the Commercial Code of Ukraine as part of broader efforts to modernise the corporate legal framework and harmonize it with international standards. Going forward, the Civil Code of Ukraine will serve as the principal legal basis for regulating business activities, with select provisions of the Commercial Code incorporated into other legislative acts.

A central feature of the law is the abolition of several legal forms of entities, which can no longer be established. These include:

• State enterprises;
• Municipal (communal) enterprises;
• Joint municipal (communal) enterprises;
• Private enterprises;
• Foreign enterprises;
• Subsidiary enterprises;
• Enterprises of civil societies (including those established by religious organisations and trade unions); and
• Consumer cooperative enterprises.

A transitional period of three years, beginning 28 August 2025, has been introduced, during which all state and municipal enterprises must be reorganised into joint-stock companies (JSCs) or limited liability companies (LLCs). From the same date, private enterprises, foreign enterprises, subsidiary enterprises, civil society enterprises, and consumer cooperative enterprises will generally be treated as LLCs governed by the Law on Limited Liability Companies, unless otherwise stipulated by their charters or other applicable legislation.

If an enterprise is not dissolved within the three-year transition period, the Law on Limited Liability Companies will fully govern its activities after the period ends, and any charter provisions that conflict with the said law will be deemed invalid.

Source – Law no. 4196-IX

2. China unveils new disclosure rules for digital platforms

Effective June 20, 2025, China’s State Administration of Taxation has issued State Council Decree No. 810, imposing new quarterly reporting obligations on digital (internet) platform enterprises, including foreign platforms providing for-profit services in China.

These platforms are now required to submit information on their users’ identities, incomes, and other tax-relevant details within one month following the end of each quarter. Certain information is exempt, specifically income data for individuals in sectors like delivery, transport, and housekeeping who benefit from tax incentives or are not liable for tax, and information already submitted via withholding declarations.

Furthermore, digital platforms must initially furnish their platform domain name, business type, unified social credit code, and operating entity name to the competent tax authorities within 30 days of the Decree’s effective date or commencing online operations. Penalties for failing to comply, such as delayed, omitted, or inaccurate reporting, include fines of CNY 20,000 to 100,000. For serious infractions, fines increase to CNY 100,000 to 500,000, with the possibility of business suspension.

Source – State Council Decree

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