Updated Rules for Storing Documents in Archives

The Order expands the list of archival documents, which means documents that must be preserved. In particular, it now includes reports on employees’ payroll (salary, allowance, benefits, compensation) on which insurance contributions have been paid. Legislative updates include digitalization of archives. This means that organizations can create collections available to users in the form of digital and analogue copies, as well as film, video, and photo materials suitable for further duplication, and maintain records of such copies in any format.

One of the key changes is that the Rules have been supplemented with a new section XVI: “Handling and Storage of Documents During a Special Period.” From now on,  an enterprise, regardless of its location, is obliged to ensure the preservation of its documents. Should any documents be damaged or lost due to hostilities, they must be entered into a special register and restored under the procedures of the Ministry of Justice.

It should be noted that not only a state archival body but also a city council archival department, a labour archive, or a private archive may function as an archival institution.

If a company is located (or operated) in temporarily occupied territories and/or areas of combat operations, was forced to cease operations, and has no legal successors in other regions of Ukraine, its representatives must transfer removed archival documents to archival institutions located at the place of termination of the company’s operations. If a company has legal successors or higher-level bodies in other regions of Ukraine, such documents must be transferred to them instead.

If an enterprise is relocating or being evacuated, it must notify the archival institution at its previous registered address of the change of its address via email or regular mail, and ensure the preservation of all removed documents. Preparation, evacuation, storage, and destruction of documents during a special period are regulated by the Procedure for Ensuring Evacuation, Storage, and Destruction of Documents During a Special Period, approved by the Order of the Ministry of Justice Order No. 3194/5 of October 17, 2019.

If a company and its documents remain in a temporarily occupied territory, then after de‑occupation a commission established by an order of the company’s management must inspect the premises where documents were stored. It is clear that this is only possible if the company’s facilities remain intact. The commission must record any damage to the premises, as well as damage, destruction, or theft of documents, in an official report. It is advisable that this should be done together with representatives of the National Police of Ukraine, the State Emergency Service, or local self-government bodies. Photo and/or video evidence is required to confirm damage or loss of archival documents. The reports must be stored at the company and cannot be transferred to archival institutions.

The rules addressing document destruction have also been updated. We would like to remind you that a company’s primary documents may not be simply destroyed, even after the retention period expires. First, a document value must be examined, a file inventory must be prepared for the relevant period, and a Report on Withdrawal of Documents Not Included in the National Archival Fund for Destruction must be drafted. This requirement applies only to legal entities. Individual entrepreneurs are exempt from document value examination. However, they must meet the mandatory retention period, which is at least five years for standard accounting and reporting documents.

If a report on documents withdrawn for destruction includes primary accounting and financial documents related to matters subject to tax audits or state financial control, a certificate must be attached. Such a certificate must be signed by the company’s director, chief accountant, or legal counsel, and sealed. It should be specified that as of the date of the meeting of the archival institution’s expert review commission (ERC) or expert commission (EC) at a company:

• no tax audit or state financial control is being conducted at the company;
• the minimum retention period for financial and economic documents relating to the reporting periods listed in the report on documents withdrawn for destruction has expired;
• there are no documents that could be used to support claims for reimbursement of financial losses caused by the armed aggression of the Russian Federation and temporary occupation;
• no disputes, criminal cases, or court proceedings are pending;
• there are no documents or information subject to the requirements of Articles 39 and 39‑2 of the Tax Code of Ukraine, or the retention period of such documents has expired.

Violation of the procedure for handling primary documents, their storage, or submission to archives may result in administrative, financial, or even criminal liability.

Natalia Shcherbak, Accounting and Tax Consultant