China outlawed all bitcoin transactions

The Central Bank of China will make it a crime to trade bitcoins and other cryptocurrencies.

“Business related to virtual currencies is considered illegal financial activity,” the People’s Bank of China said. They believe that cryptocurrencies “endanger” the assets of the country’s population.

At the same time, China is one of the largest markets for cryptocurrencies in the world, as well as one of the largest “miners” of them.

So, changes in the Chinese market will certainly affect the global virtual currency market.

This also happened after the announcement that from now on bitcoin is illegal in China.

Immediately after the announcement of the Chinese central bank, its value fell by more than $ 2,000.

This is the last, but far from the first, step taken by the Chinese authorities, which are trying to curb processes that, as they believe, are at best associated with speculative investments, and at worst – with money laundering.

In general, cryptocurrency trading was officially banned in China back in 2019, but in fact it continued online due to overseas marketplaces.

In general, cryptocurrency trading was officially banned in China back in 2019, but in fact it continued online due to overseas marketplaces.


The technology behind most cryptocurrencies, including Bitcoin, is that many computers verify and confirm transactions with it in the giant database from which the blockchain is built.

There are new “coins” to “reward” those who participate in this process, which is called “crypto mining”.

China, with its relatively low prices for electricity and computer equipment, has been one of the world’s centers for “mining” cryptocurrencies for a long time.

The decision of the Chinese authorities over the past years has undermined the “mining” industry.

If in September 2019 China accounted for 75% of the world’s energy use for bitcoin mining, by April this figure fell to 46%.

Ukraine and EU signed long-awaited “open skies” agreement

Ukraine and the European Union signed the long-awaited “open skies” agreement.

According to “Evropeyskaya Pravda”, the signing ceremony took place within the framework of the Ukraine-EU summit on October 12 in Kiev.

On the Ukrainian side, the agreement was signed by Prime Minister Denis Shmygal, on the EU side – by the head of diplomacy Josep Borrell and Slovenian Ambassador to Ukraine Tomas Mencin.

The Open Skies Agreement aims to equalize Ukrainian and European airlines in some rights, remove the monopoly on certain routes established by bilateral agreements, facilitate the opening of new routes between Ukrainian and European cities, and as a result, ticket prices should be reduced.

The EU notes that one of the consequences of signing the agreement should be the entry of new low-cost airlines to Ukraine and an increase in the tourist attractiveness of Ukraine.

The agreement was initialed back in 2013, but has not yet been signed due to the British-Spanish dispute over the ownership of Gibraltar.

The signing was expected on February 11 in Brussels, but in early February, the president’s office said it had failed.

On June 28, the EU Council agreed to sign an Agreement on a Joint Aviation Space with three countries, including Ukraine.

Digital tax. Revolutionary agreement of 136 countries

Transnational corporations from 2023 will have to pay corporate tax at a rate of at least 15%, regardless of the tax level in the jurisdictions in which the companies are registered.

Flat rate agreement & nbsp; minimum 15 corporate tax percent concluded 136 states, which account for more than 90 percent of world GDP. The agreement aims to combat tax evasion by international corporations. & Nbsp;

The initiative was also signed by those countries that were initially opposed to tax reform, for example, Hungary, Ireland and Estonia, which were previously convenient hubs for IT giants. & nbsp; & nbsp; tells the details .

The Most Important Tax Agreement

136 countries, including Ukraine, which account for more than 90 percent of the global economy, have agreed that the global minimum tax rate for large corporations will be at least 15 percent.

About this & nbsp; reported & nbsp; to the Organization for Economic Co-operation and Development on October 8th, which became the platform for this global initiative.

The idea is that, first, corporations pay taxes in the same country where they made their profits. Secondly, in order to avoid the emergence of “tax havens”, a minimum requirement for all countries is introduced.

The project, which has been working on for several years, is now called a timely opportunity to provide additional revenues to the state budgets for the recovery of economies after the coronavirus crisis. & nbsp;

Corporate tax will be applied to companies with revenues of more than 750 million euros. The agreement will raise $ 150 billion annually worldwide and will also redistribute more than $ 125 billion in revenues of the 100 largest international corporations.

In addition, the new tax rules will affect companies with global sales in excess of 20 billion euros. If a corporation receives more than ten percent of the profit margin, it will be forced to redistribute 25 percent of the excess to the countries where it sells its services and goods.

The agreement could deprive tech giants like Google, Apple, Facebook and other corporations of the ability to evade taxes through low-tax jurisdictions.

“The agreement will make our international tax mechanisms fairer and more efficient. This is a major victory for an effective and balanced multilateral approach,” said OECD Secretary General Matthias Kormann.

The initiative was signed by those countries that were initially against the tax reform, for example, Hungary, Ireland and Estonia. It was possible to reach an agreement with them thanks to concessions, for example, Hungary extended the transition period by ten years. This will allow the country to temporarily maintain the rate of nine percent.

The new tax rules are due to enter into force in 2023. & nbsp; The initiative is expected to be finally approved at a meeting of the G20 leaders in Rome in late October, followed by changes to national legislation.

In France, the agreement was called “the most important in the field of taxes in a century”, and in Germany announced “colossal progress in the field of international corporate taxation.”

“For four years we have worked for the fair taxation of international companies and digital giants,” said French President Emmanuel Macron, calling & nbsp; the introduction of a minimum 15 percent income tax for multinational companies historic.

The United States came up with the idea of ​​introducing a single minimum tax on transnational corporations. The authorities are not happy with the fact that companies are registered in low-tax jurisdictions like Ireland and the British Virgin Islands in order to pay much less fees.

As a result, all states had to compete for corporations to pay taxes exactly about them, and, as a result, reduce rates. A minimum rate of 15 percent should end this – most developed and developing countries agree.

At the same time, experts note that large rich countries benefit most from the tax revolution, whose citizens consume a lot of electronic services, money from which previously accumulated in low-tax jurisdictions.

In early June, agreements on the introduction of a digital tax reached the G7 countries after years of discussion. Then the British Finance Minister Rishi Sunak called the agreement & nbsp; historical and revolutionary . < / p>

Many countries decided not to wait for the end of many years of discussion and themselves introduced a digital tax. & nbsp; It is already in force in France, Spain, Italy, Great Britain, Austria, Turkey. & nbsp;

June 28, President of Ukraine Volodymyr & nbsp; Zelensky & nbsp; signed the law , according to which foreign global technology giants such as Apple, Google, Microsoft, Netflix and others will pay 20 percent VAT (value added tax) in Ukraine. & nbsp;

Under the new law & nbsp; foreign companies that supply Ukraine with electronic services will be required to register as VAT payers using a simplified procedure through a special electronic service, if the total amount from the implementation of the relevant transactions exceeds one million hryvnia per year.

News from & nbsp;

JP Morgan GBI EM Index To Include Ukrainian Hryvnia Bonds

Government bonds of Ukraine claim to be included in the JP Morgan Global Index Research GBI-EM GD starting from March 31, 2022 with an approximate share of 0.12%. This is reported by the Ministry of Finance of Ukraine.

Initially, all three GBI-EM series will include one series of bonds that meets the requirements of the index: government bonds with a coupon of 15.84% maturing in February 2025.

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JP Morgan Global Index Research noted that the portfolio of foreign investments in Ukrainian government bonds issued in the domestic market has grown significantly since the launch of the link with Clearstream in 2019, and the share of non-residents in the government bonds market has grown to more than 10%.

Most investors acknowledged the improvement in market liquidity over the past two years, but at the same time noted that the process of opening an account in Ukraine may take several months. Inclusion in the index will begin on March 31, 2022, in order to provide investors with sufficient time, if necessary, to establish access to the market and accounts in Ukraine.

“We are grateful to the JP Morgan Index Team for the good news. The inclusion of hryvnia government bonds in the JP Morgan GBI EM index helps us achieve the objectives of our Medium Term Public Debt Management Strategy. We would like to have more hryvnia instruments suitable for the index, therefore we will issue all bonds in hryvnia with a maturity of more than four years, in an amount sufficient to be included in the JP Morgan GBI-EM index “, – said the government commissioner for public debt management Yuriy Butsa. Emerging Markets Index (GBI-EM) is used by investors to track the performance of developing country bonds for investment purposes. The most popular version of the GBI-EM Global Diversified Index covers 16 countries: Brazil, Chile, Colombia, Peru, China, Indonesia, Malaysia, Philippines, Thailand, Mexico, Nigeria, Poland, Romania, Russia, South Africa and Turkey.

  • In financing the state budget, the Ministry of Finance mainly focuses on the domestic market, reducing dependence on external borrowing. In the budget for this year, the Ministry of Finance has planned to borrow almost UAH 520 billion on the domestic market, but so far it has been able to attract only about half.

Five Reasons to Consider How to Maintain Ownership of Your Business

Obviously, the owner does not create a business in order to pay or not pay taxes. Although the tax officials have a different opinion in all seriousness. In addition to all those issues that we have already discussed in previous issues, the business owner is full of routine things that need to be thought about in parallel. And among them are management risks and asset protection.

According to statistics, corporate disputes over the past seven years have grown by almost 20% annually. The bulk (over 70%) is provided by small and medium-sized businesses. Simply because many do not know how to negotiate.

In business customs, at best, to negotiate the terms of “entering the topic” – slapped hands, washed, and then the war will show the plan. But it rarely comes to systematically defining the scope of responsibilities, securing areas of responsibility, exiting a business, discussing issues of inheritance of shares, etc. We often see conflicts smoldering for years. And when it comes to a spark, instigators will also appear to decide everything through the courts – lawyers and attorneys who make money on it.

But do not forget: a conflict between partners in 50/50 shares does not have judicial protection (the court will offer you either to liquidate the business or buy out each other’s share), this time. And secondly, the judicial outcome of the conflict in 35% of cases is bankruptcy.

What are the key points in terms of management risks?

The first is the transfer of the owner to the strategic level – “going out to the astral plane,” as we call it. Sooner or later, for various reasons, the owner wants to get away from operational management. Someone is more like reading books, fishing for fish or moving to the seas.

The desire to enter the astral plane is followed by the desire to decentralize business while maintaining ownership control. But if you step aside from operational management, you need to decide who will take care of it for you. And for what strange reason this person will rip on his shirt as zealously as you do.

The second is the transparency and manageability of the business. First you need to understand what your business is. As practice shows, the owners of their business reliably represent 70-80%, everything else is wishful thinking, passed off as real. Which, in principle, is the norm.

“Miracle won’t happen.” How to Legally Optimize Your Business

This conversation is about tax optimization tools and the principles of separation of functional units in a group of companies.

It is imperative to understand that the tax optimization toolbox is finite. Moreover, not only we or you know about them, but also the tax authority. Therefore, in all cases when you are trying to “take out” something, the tax authority is well aware of this.

Yes, sometimes the legislator gives us gifts – makes legislative changes on some forms of legal entities or methods of doing business, and suddenly there are opportunities for additional methods of tax optimization. But in general, the number of instruments is finite, and no miracle will happen now.

We do not have a task to create a situation in which, in the case of using tax optimization tools, the regulatory authorities will not have any questions to you. Our task is to create a situation in which you will have the correct answers.

First, remember: tax optimization cannot be the only goal of business transformation, but only a side effect. In addition, only income taxes can be optimized. In terms of social contributions and indirect taxes, you can only keep your finger on the pulse and be no better or worse than others.

Since legal tax optimization is possible within the framework of separating functional divisions and building a group of companies, I would like to emphasize: The Supreme Arbitration Court has unambiguously and more than once indicated that the separation of different types of activities (for example, production and sales) does not indicate an unjustified tax benefit (even if it is interdependent companies), on the contrary, is consistent with business practice.

We will consider optimization tools using the example of functional links in a group of companies that are engaged in production. This is very convenient, since manufacturing companies have the most complex business processes and require more support functions. Thus, what works with production workers is in demand by everyone else, but this rule does not work in the opposite direction.