Who Will be Exempted from Rent during the Quarantine Period?

Talks about the need to support business in a difficult period do not subside; as a result, there is one more attempt by the government to throw a “life buoy” to drowning tenants in the form of exemption from rent payments of state property.

On July 15, the Cabinet of Ministers of Ukraine adopted a resolution by which tenants of state property were exempted (in whole or in part) from paying rent payments for the quarantine period. There are certain conditions, such as the type of activity of the tenant which determines the percentage of the discount on rent payments. In particular, tenants are completely exempted from rent for the use of state-owned real estate if one of the following conditions is met:

The premises are rented in educational buildings of educational institutions of state ownership;

The premises are rented for the placement of private educational institutions and state educational institutions partially financed from the state budget, educational institutions financed from the local budget, state and municipal institutions of extracurricular education (except for health institutions for children and youth) and institutions of preschool education, physical culture and sports institutions whose activities are aimed at organizing and conducting classes in various sports, libraries, museums and others;

The premises are rented for the purpose of organizing concerts and other entertainment activities, consumer services for the population; implementation of tour operator and travel agency activities.

A 75% discount is provided to tenants who use immovable state property for placement on the territory of airports:

1. Cafes, bars, cafe bars, snack bars, buffets, cafeterias,
2. Restaurants, restaurants with night hours;

III. Canteens, canteens that do not sell goods of the excisable group;

1. Shopping facilities.

The rent for real estate state property is reduced by 50% if one of the following conditions is met:

1. The rented space is used for the placement of food outlets, photocopying equipment, computer clubs and Internet cafes, retail outlets for the sale of industrial goods (other than those that carry out retail trade in hygiene products) and the sale of used non-food products, art and book exhibitions, exhibitions of non-food products without trade, hotels, transport companies for the transportation of passengers, office premises;
2. Ukrainian legal entities and individuals that are subjects of small business, carrying out production activities directly on rented production areas;
3. Subjects of cinematographic activity, the main activity of which is filmmaking or technical support and maintenance of filmmaking, provided that they are included in the State Register of Film Producers, Distributors and Demonstrators.

Currently, the end date of the quarantine fixed by the Government is July 31, but the possibility of continuation is not excluded.

You can read more about quarantine “mitigations” for individuals and legal entities here