The Verkhovna Rada Ukraine in general voted for legislation № 2035, which provided for increased responsibility for violation of guarantees to employees, called up for military service, established by the law.
Legislative changes provide for the introduction of penalties to employers for specified violation in amount of 10-fold minimum wages for each employee for whom the violation was committed. Currently this penalty is UAH 13 780.
In addition, the administrative penalty from UAH 850 to UAH 1700 would be imposed on public officials, legal entities and individuals-entrepreneurs who have violated the rights of mobilized employees.
The Cabinet of Ministers of Ukraine by its Resolution “On amendments to paragraph 22.5 of the Road Traffic Regulations” of 21.10.15, № 869 banned vehicular traffic and their trains in case of transportation of divisible goods (i.e. goods that can be divided and transported by several trucks) on motor roads with loading on:
- single axle over 11 tons;
- dual axis - over16 tons;
- triplex axis - over 22 tons or actual weight of over 40 tons.
The traffic of container vehicle is prohibited on motor roads with loading on:
- single axis - over 11 tons;
- dual axis - over 18 tons;
- triplex axis - over 24 tons or actual weight of over 44 tons.
At the same time, transportation limit for container vehicle on specifically determined routes by Ukravtodor and State Traffic Inspectorate is larger - 46 tons.
Also, the traffic on public roads of local importance vehicles with axle load over 24 tons (or more than 7 tons per axle). List of such roads should be approved by the regional state administrations every three years (Sec. 11 of Art. 8 of the Law of Ukraine “On automobile roads” of 08.09.05, № 2862-IV).
The Cabinet of Ministers of Ukraine by its Resolution “On establishment of the State Audit Service Ukraine” of 28.10.15, № 868 decided to create a new central executive body - the State Audit Service of Ukraine. The Service won’t come out of nowhere – the Government reorganizes the State financial inspection, and based on it is going to establish the auditing service.
It is not known what the Service is going to do and what its authorities are. The Ministry of Finance of Ukraine is authorized to develop provisions on auditing service within two months. It will be clear what controllers should do as soon as the document appears.
The State Fiscal Service of Ukraine in its letter “On accrual of Unified Contribution for compulsory state social insurance on wages for those students who undertake an internship in company” of 13.10.15, № 21700/6/99-99-17-03-03-15 concluded that wages, charged for those students who undertake an internship in company under the contract on practical training, is the basis for accruing of Unified Contribution. It is interesting that the Ministry of Social Policy and the Pension Fund of Ukraine claim in their explanation that students-trainees are not in labor relations with a company where they have practice. Therefore, it is not required to accrue and to retain the Unified Contribution. However, in our opinion, the conclusion of the state financial control conclusion concerning the need of Single Contribution accruing and retaining is reasonable.
Also, the state financial control noted that additional charges of the Unified Contribution are not applied to the wages of students-trainees. And data on such people are not considered when calculating of defining the eligibility for decreasing coefficient.
The State Fiscal Service of Ukraine by its letter “On amendments in payments accounting” of 13.10.15, № 37872/7/99-99-20-03-01-17 reminded that the transfer of amounts of advance payments of income tax should be implemented on the budget accounts under budget classification codes provided for the accounting of corporate income tax.
These changes are related to the exception of budget classification codes, provided for the accounting of revenues of advance payments, from the income tax. The State Treasury Service of Ukraine on 06.10.15 made transfer of advance payments balances from the income tax on the accounts of revenues for income tax and closed accounts of revenue accounting of advance payments from the income tax.
The State Fiscal Service of Ukraine in its letter “On making information to application 6 of Declaration of excise tax” of 22.10.15, № 9817/Б/99-99-21-05-14 advised to focus on the information indicated on the label of alcoholic product while completing some lines of application 6 “Calculation of excise tax on realization of excise goods by the retailing entities” to the Declaration of excise tax approved by the Ministry of Finance of Ukraine of 23.01.15, № 14 (hereinafter - Declaration).
In particular, in line 1 “Alcoholic beverages” of Declaration should be filled in types of vodka and alcoholic beverages (liqueurs, cordials, liqueurs, balms, aperitifs, cocktails, dessert drinks), while in line 2 “Wine products, other alcoholic distillates, products containing ethyl alcohol 8.5 percent by volume and more” of Declaration should be indicated natural wines, champagne wine, vermouth, brandy, cognac, whiskey, rum, gin, tequila etc.
The State Fiscal Service of Ukraine in its letter “On taxation of VAT transactions on funds transfer in the form of guarantee payment under the lease contract” of 28.10.15, № 22839/6/99-99-19-03-02-15 explained how guarantee payments received under the lease contract influenced on VAT accounting of lessor:
- if guarantee payment is credited in payment of lease (rent) payments, such payment amount increases the amount of VAT taxation base of the lessor;
- when the guarantee payment only enforces the obligations and is to be returned to the tenant at the end of the term of the contract, the amount of such payment does not increase the tax base of the lessor.
At the same time controllers note: in case of conclusion of additional agreement to the lease contract under the terms of which it is to be changed the direction of using of previously obtained guarantee payment, which at first enforced the obligations under the contract, and then directed to the payment of lease (rent) payments, the lessor should charge tax liabilities on the amount of received guarantee payments.
The tax invoice under such transaction should be drawn up on the date of signing of additional agreement. It is the basis to form a tax credit of tenant subject to its proper execution and registration in URTI.
The State Fiscal Service of Ukraine by its letter “On the procedure of VAT accrual when depreciation of damaged product” of 27.10.15, № 22542/6/99-99-19-03-02-15 reported that remains of product that the company recognized unsuitable for realization and sent to be recycled, should not be the subject under VAT taxation since such a transaction should not be considered as the goods supply.
At the same time such remains include the cost of the new products when the manufacture of which they were used. So, damaged goods which sent to be recycled should be considered as used in economic activity. So, the mechanism of accrual of “compensative” tax liabilities from para. 198.5 of the Tax Code of Ukraine does not work in this case.
The State Fiscal Service of Ukraine in its letter “On inclusion of adjustments calculation to tax invoices to the tax liabilities and tax credit” of 27.10.15, № 22541/6/99-99-19-03-02-15 supported tax reduction of tax liabilities by the supplier in the period of drafting of adjustments calculation, associated with a decrease in amount of compensation (despite that it registered next month, but in compliance with the 15-day period). Thus, officials denied the response, which appeared in October in category 101.23 ZIR. It should be reminded, that controllers in that response approved the reflection of adjustments calculation only during its registration in the Unified Register of tax invoices.
The Ministry of Social Policy of Ukraine in its letter “On indexation of wages in determining of allowances for the special kind of work” of 22.10.15, № 16009/0/14-15/13 clarified the introduction in September of 50% allowances for the special kind of work to the employees of social protection, who directly performed the function of providing various types of social assistance. As competent authorities emphasised, the mentioned above allowance was established due to the increased volume of work of such employees. And a month when the increase of money incomes appears due to the increased volume of work, should not considered to be the base with the purpose of indexation (para.5 of the Procedure of indexation of money incomes of population, approved by the Resolution of the Cabinet of Ministers of Ukraine of 17.07.03, № 1078).
