Important Draft Laws. Issue 32: Registered Partnerships, Stricter Penalties for Domestic Violence, and a New Tax on Pharmaceutical Manufacturers

During this period, 64 draft laws were registered: one initiated by the President (ratifying the Agreement between Ukraine and the EU on implementing the Ukraine Loan Cooperation Mechanism), nine by the government, and 54 by MPs. Notable initiatives included the introduction of registered partnerships, the imposition of new taxes on pharmaceutical manufacturers, reforms to credit history bureaus, and imprisonment for systematic domestic violence.

Registered partnerships: new rules for legal relations between citizens

Bill No. 12252 proposes legalizing registered partnerships as a distinct form of civil status for two adults. While a registered partnership would not be considered a marriage, it would grant the partners the status of close relatives and associated rights and obligations. Living together as a family would not qualify as a registered partnership unless the union is formally registered. The existence of a registered partnership would prevent its participants from marrying other people; however, the partners would be able to marry each other, at which point the partnership would be annulled.

Applications for partnership registration need to be submitted to the civil status registration authorities, either in person or online. During martial law, notarized documents from one partner could be submitted through a representative, military, or medical facility. Individuals would need to contact the registration authorities or the court to dissolve a partnership.  

The draft law includes provisions concerning partners’ joint property and social protection, such as payments in the event of a partner’s death. It also addresses the specific needs of service members who cannot participate in the registration process due to martial law. 

Introduction of a new tax for pharmaceutical manufacturers

Bill No. 12276 proposes an increase in taxes for pharmaceutical manufacturers. The initiative includes two main measures.  

The first measure proposes raising the corporate income tax rate to 50%. This would apply to profits earned in Ukraine and abroad, including those of controlled foreign companies (CFCs). Taxation would be based on the share of CFC profits corresponding to the ownership or control share held by the Ukrainian manufacturer.  

The second measure introduces a fee of UAH 10,000 for the production of each type of pharmaceutical product. Licensed manufacturers would calculate the number of drug types produced each month, submit a tax declaration within 20 days of the following month, and pay the fee within 10 days. 

Reforming the credit history bureau system

Bill No. 12260 proposes a new version of the current Law on Credit Histories and establishes new principles for the functioning of credit history bureaus in Ukraine. The document requires that information about credit transactions be obligatorily transferred by data providers (banks, credit unions, businesses selling goods with deferred payment, etc.) to at least one credit history bureau without needing separate consent from borrowers. A unique identifier for each credit transaction would ensure tracking of credits at all stages of their existence.

Key innovations in the draft law include the following provisions: bureaus would be required to establish internal control and cybersecurity systems by standards set by the National Bank of Ukraine, disclose ownership structures, and report annually on owners with significant stakes. The National Bank of Ukraine would be responsible for monitoring compliance with the law. Additionally, the bill outlines clear procedures for the National Bank authorizing and deauthorizing bureaus.

Cross-border data exchange with foreign credit history bureaus (the bill includes countries such as the EU, the USA, Canada, Japan, and Switzerland) would allow Ukrainians to check whether they have any issues with credit abroad.

The bill provides for automatic verification of individuals’ status in state registers to prevent fraudulent activities involving the issuance of credit in the names of deceased or missing persons. Relatives of the missing during martial law would have the right to check the credit history to identify potential fraudulent attempts. The bill also allows heirs to check the credit history of deceased individuals to understand the inherited financial obligations.

One of the bill’s innovations is the possibility for an individual to block the issuance of credit in their name to prevent fraud and revoke this block at any time.

Protection of a portion of the wages and pensions of debtors from seizures

Bill 12242 proposes changing the rules for garnishing the wages and pensions of debtors. Currently, the law allows for the seizure of only a certain portion of the debtor’s income—up to 50% of the salary in the case of alimony, compensation for harm caused to another person resulting in injury or health damage, loss of a breadwinner, and up to 20% for other debts. In the case of alimony for minor children, and if the debtor is sentenced to corrective labor, up to 70% of the salary may be seized.  

The bill clarifies that a garnishment cannot be applied to the remaining portion of wages or pension after these deductions. It also stipulates that the remaining funds after deductions cannot be seized. The owner of these funds would have the right to freely manage them—e.g., by transferring them to another bank account—and these funds would be protected from garnishment. This would help ensure the minimum living needs of debtors and prevent situations where they might lose all their money due to garnishment.  

Changes to the procedure for recognizing individuals with disabilities due to war and their rights

Bill 12212-1 proposes including in the category of persons with disabilities due to war any individuals (not just military personnel) who have sustained injuries, concussions, disabilities, or illnesses as a result of combat actions, terrorist acts, or Russia’s armed aggression during the period of martial law, as well as due to explosions of munitions or missile strikes.  

Individuals having the status of combatants and those simultaneously recognized as persons with disabilities due to war would be able to choose which category they wish to receive benefits under.  

Reduction of salaries and conflict of interest control: new rules for the HCJ

Bill No. 12265 proposes several changes to the High Council of Justice (HCJ) operation. First, HCJ members would no longer be allowed to participate in competitions for judicial positions while holding office. Second, in case of a conflict of interest, an HCJ member would be required to declare it, after which they would not be able to consider the relevant issue. Third, the bill proposes reducing the remuneration of HCJ members, aligning it with the salary of a local court judge (approximately UAH 63,000). Currently, this remuneration is tied to the salary of a Supreme Court judge and amounts to over UAH 236,000.  

Additionally, the bill stipulates that the Chairperson of the HCJ can hold this position for only one term. 

The draft law also proposes changes to the procedure for dismissing HCJ members. The decision to dismiss is made by the body that appointed or elected the HCJ member (the President, the Verkhovna Rada, congresses of judges, lawyers, or scholars) but based on a proposal from the HCJ itself. The bill suggests allowing the relevant bodies to independently dismiss HCJ members if there are grounds for doing so, such as the inability to perform duties due to health reasons, submission of a resignation request, gross or systematic neglect of duties, violations of anti-corruption legislation, etc.

Additional payment to local court judges during martial law

Bill No. 12244 proposes introducing a monthly supplement of UAH 10,500 for local court judges. This supplement would be temporary and would remain in effect until the end or cancellation of martial law. It would not be included in the judicial remuneration or affect the amount of any previously assigned monthly lifetime financial support for judges. Its introduction is provided for in Article 41 of the Law “On the State Budget of Ukraine for 2025.” Currently, the salary of a local court judge is approximately UAH 63,000 (30 minimum living wages for working-age persons, which are used to determine the base salary of a judge, and according to the 2025 budget, the minimum wage will be UAH 2,102).

Protection of workers’ rights during wartime: new rules for absence from work

Bill No. 12255 proposes to guarantee that workers who are unable to go to work due to combat actions or the danger to their lives will be preserved in their jobs and positions. Their absence would be considered as absence for a valid reason until the circumstances are clarified, and the employer could not terminate such employees on their own initiative. However, the period of such absences would not be paid or counted toward work experience relevant to vacation entitlement.

Strengthening liability for domestic violence

Suppose a person is fined twice for domestic violence under the provisions of the Administrative Code (e.g., verbal abuse, economic pressure, or minor physical violence) and continues such behavior. In that case, their actions may be classified as systematic violence (Bill 12290 proposes to clarify the concept of ‘systematicity’). Systematic violence—along with the forms of violence already specified in the Criminal Code (intentional actions and violence causing physical or psychological suffering, health disorders, or loss of ability to work)—would be treated as a criminal offense. This would result in more severe penalties, including community service, restriction of liberty, or even a prison sentence of up to two years. The bill aims to simplify proving guilt in criminal cases and strengthen the fight against domestic violence.

Introduction of the obligation to inform engaged individuals about past domestic violence incidents

Bill No. 12240 proposes amending the Family Code to include a new article requiring engaged individuals to disclose any instances of being held administratively or criminally liable for committing domestic violence. The government would establish the procedure for such notification. This bill aims to strengthen preventive measures against domestic violence. However, the practical implementation of this obligation remains unclear.

Expansion of the ESB’s access to information constituting professional secrecy in capital markets

Bill No. 12296 proposes granting the Economic Security Bureau detectives access to information protected as professional secrecy for entities operating in capital markets and organized commodity markets upon written request. This includes access to data from securities depository systems, such as information about client accounts, account numbers, securities and asset balances, transactions conducted on these accounts, payment purposes, and identification details of counterparties. Currently, this information is accessible to the Prosecutor’s Office, the Security Service, the State Bureau of Investigation, the National Police, the National Anti-Corruption Bureau, the Antimonopoly Committee, the National Agency on Corruption Prevention, and the National Agency of Ukraine for Finding, Tracing and Management of Assets Derived from Corruption and Other Crimes.

Procedure for the temporary stay of Armed Forces units abroad: new rules

The government bill 12293 proposes establishing a mechanism for temporarily deploying Ukrainian Armed Forces units abroad during martial law. The decision on such deployments would be made by the Supreme Commander-in-Chief of the Ukrainian Armed Forces (the President of Ukraine) upon the proposal of the Commander-in-Chief of the Ukrainian Armed Forces, with the agreement of the Minister of Defense. The decision would specify clear conditions, including the purpose, duration, personnel numbers, types of weaponry, and procedures for replacing and maintaining the units. After the conclusion of martial law, all units would be required to return to Ukraine immediately.

Currently, the deployment of Ukrainian Armed Forces units abroad is governed by international treaties of Ukraine and requires a decision by the Verkhovna Rada under the Constitution. This bill may be needed to simplify the procedure, which delays operational responses to military needs.

Career counseling in educational institutions

Bill 12235 introduces the position of career counselor in higher education institutions. These professionals would assess students’ professional inclinations, develop their “soft” skills (the ability to interact with others) and “hard” skills (measurable knowledge and abilities, such as solving mathematical problems or proficiency in a foreign language), organize masterclasses and training sessions, and interact with employers. The bill seeks to promote students’ professional development and employment.

Bills 12236, 12237, and 12238 propose introducing regular psychodiagnostic testing at various levels of education—schools, colleges, and higher education institutions. In schools, testing is proposed to be conducted every two years (in grades 5, 7, 9, and 11). In vocational and technical education institutions, as well as universities, it would be conducted annually. The goal is to assess students’ psychological profiles, inclinations toward specific fields of study, abilities, skills, and physical fitness levels. The results would be advisory and could be used by teachers to individualize the learning process. Additionally, school and university students and their parents could use the results to build an educational trajectory, choose a study profile, determine a professional direction, create a career plan, and organize physical education (sports development). 

Transfer of remaining school budget funds from 2024 to 2025

Bills 12273 and 12274 propose transferring the remaining funds from state subsidies allocated to local budgets in 2024 to 2025. The first bill pertains to subsidies for purchasing equipment and modernizing school cafeterias, while the second concerns subsidies for creating safe conditions in schools. The total amount of funds that could be transferred to 2025 is UAH 4 billion (UAH 2.5 billion and UAH 1.5 billion, respectively). However, the accompanying documents to the bills lack specific financial calculations, such as the expected remaining funds, completed and uncompleted work, and the actual needs of the regions. Furthermore, the 2025 budget does not allocate funds for these programs.