How Should Businesses Act in the Event of Property Damage Caused by War?

The material covers:

• Assessment and documentation of losses (evidence base): recording damage, collecting supporting documents, and conducting an independent valuation of losses. Proper documentation is essential for court proceedings, insurance claims and potential state or international compensation.
• Tax implications and accounting for destroyed property: damage to assets requires not only the recording of losses, but also the correct reflection of these losses in accounting and tax records. This involves notifying the tax authorities of lost documents, restoring accounting data, taking an inventory and writing off destroyed assets. Proper documentation ensures transparent financial reporting and helps to avoid issues during audits.
• Options for employers if the enterprise is damaged: if the enterprise is damaged and work cannot continue, the law provides several options: declaring downtime; transferring employees to remote working; temporarily reassigning employees to other positions; granting leave (paid or unpaid); and suspending employment contracts. These measures help to preserve employment relationships and minimise financial risks.
• State programmes to support business (recovery and compensation): the government offers a range of tools to assist enterprises affected by war, including grants for production recovery, insurance mechanisms and planned tax and customs incentives for investment.
• Checklist for managers: a list of key documents and procedures to prepare in advance. Taking a proactive approach will help to quickly record losses, initiate the compensation process and minimise risks in the event of an emergency.