The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolutions of the Cabinet of Ministers of Ukraine dated November 3, 1998, No. 1740 and August 25, 1999, No. 1549” of 28.03.18, No. 212, established the form and procedure for the submission by notaries of reports on concluded real estate sale contracts and payment of a fee for compulsory state pension insurance.
According to the Government resolution, notaries every quarter before the 20th of the month following the reporting quarter are obliged to submit the report on concluded real estate sale contracts and payment of fee for compulsory state pension insurance according to the approved form to the authorities of the Pension Fund of Ukraine at the place of location of the state notary office or private notary office.
The form of the report contains information on the number of real estate sale contracts in each month of the reporting quarter, as well as the value of such property and the amount of the fee paid for compulsory state pension insurance.
Reports on paper carriers certified by the notary’s signature or the head of the state notary’s office and sealed, the notaries will submit in person or send by post (with a statement of delivery and description of the attachment) not later than 10 days before the deadline for submission of the report.
Also, notaries certifying real estate sale contracts must keep a copy of the payment order, which confirms the payment of the compulsory state pension insurance for real estate purchase and sale transactions. The sum of the fee is paid by the payer at the location of the state notary office or the private notary’s place of work.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On recognition of a business transaction controlled in the absence of the organizational and legal form of non-residents in the relevant list (resident of Estonia)” of 19.03.18, No. 1091/6/99-99-15-02-02-15/ІПК reported that transactions with residents of Estonia did not fall under controlled ones, even if all the cost criteria from para. 39.2.1.7 of the Tax Code of Ukraine (hereinafter - TCU) to be fulfilled.
It is worth recalling that recently the Cabinet of Ministers excluded Estonia from the list of offshore countries. Therefore, transactions with such non-residents are not considered to be controlled for the purpose of transfer pricing.
This applies to cases where the government can not be recognized as controlled by other features of para. 39.2.1.1 of TCU. For example, if such a non-resident is a related party or commissioner, or his/her organizational form is in List No. 480, transactions with him/her will still be considered controlled.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On recognition of economic transactions of agricultural producers - payers of the unified tax of the fourth group for the sale of products for export as controlled” of 21.03.18, No. 1153/6/99-99-15-02-02-15/ІПК explained: the economic transactions of the agricultural producer, made by him/her while being on the simplified taxation system, are not recognized as controllable in accordance with Art.39 of TCU.
Such a conclusion is quite logical. After all, controlled transactions are considered economic transactions that may affect the object of taxation of company income tax (para. 39.2.1.1 of TCU).
The payers of the unified tax, to which the agricultural producer belongs, who is the payer of the unified tax of the fourth group, are exempted from the obligation of accruing, payment and submitting tax returns on the company income tax (para. 297.1 of TCU).
Since the agricultural payer of the unified tax does not pay income tax, his/her transactions are not subject to transfer pricing.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the taxation of income in the form of the value of the property received as the gift” of 22.03.18, No. 1184/З/99-99-13-02-03-14/ІПК reported: if an individual receives a gift or inheritance from a family member of the second degree of kinship, then the value of the property received as a gift is taxed at zero rate. Accordingly, there is no need to pay the war tax.
Family members of the second degree of kinship consist of siblings, grandparents and grandchildren (para.14.1.263 of TCU).
In case of receiving such a gift (inheritance), the individual is also exempted from submitting a declaration of income, provided that there are no other reasons for submitting the declaration.
The Ministry of Finance of Ukraine in its General Tax Advice on the need to apply to the court to declare the debt to be bad in accordance with sub-sec. “a” of para.14.1.11 of para. 14.1 of Art. 14 of the Tax Code of Ukraine, approved by the order of the Ministry of Finance of Ukraine dated 03.04.18, No. 400, reported: in order to recognize the debt to be bad, only one condition is sufficient - the expiry of the limitation period.
There are no other conditions required by the Tax Code of Ukraine for recognizing the bad debt. That is, the payer-lender does not need to take any measures to collect the debt, in particular, through the court, the recognition of the debtor bankrupt, etc.
Consequently, the expiry of the limitation period is sufficient to declare such a debt to be bad debt, regardless of whether the creditor appealed to the court in order to collect it.
The Ministry of Agrarian Policy and Food of Ukraine by its Order “On approval the regulations under which compensation is made in wine growing, horticulture and hop growing, forms of reporting and the list of equipment, machinery and technology” of 20.03.18, No. 151 approved new norms for compensating grape growers, gardeners and hop growers, as well as forms of reporting and a list of equipment, machinery and equipment that farmers need to participate in state support programs.
Thus, there are rules under which expenses compensation is made:
- for the creation and irrigation of fruit and berry plantations, vineyards and hops without taking into account design work;
- for design work in vine growing, horticulture and hop growing;
- for construction of refrigerators with regulated gas environment and capacity of 500 tons for storage of table grapes and fruits of own production;
- for the construction of fast freezing chambers of fruits and berries;
- for purchasing lines of commodity processing of fruits.
In addition, it is updated the List of new mechanisms and techniques for carrying out technological operations in vine growing, horticulture and hop growing, equipment for sublimation drying of fruits, modernization of refrigerating and gas storage regimes in reconstructed refrigerators to be compensated.
The Ministry of Social Policy of Ukraine by its letter “On the mandatory approval of the rules of the internal labor regulations” of 21.06.17, No. 312/0/22-17/13 reported: the norms of labor legislation apply to labor relations that arise between an employee and an individual - an entrepreneur.
According to Art.29 of the Code of Labor Laws of Ukraine (hereinafter - Labor Code) before the commencement of work under a concluded employment contract, the owner or an authorized body of the latter is obliged, in particular, to acquaint the employee with the rules of the internal labor regulations, the ministry emphasizes. This requirement also applies to entrepreneurs.
Failure by an employer, including an entrepreneur, a determined procedure for work permit of an employee is a violation of labor legislation.
It should be recalled that the employer’s liability for violation of labor legislation is established by Art.265 of Labor Code. In particular, a fine may be one minimum salary (today - UAH 3 723) for not familiarizing the employee with the rules of internal labor regulations.
The Ministry of Social Policy of Ukraine by its Order “On approval of the requirements for safety and health in the use of industrial equipment by employees” of 28.12.17, No. 207 approved the safety and health requirements for the use of production equipment by employees.
In particular, it has been established that the employer must monitor, evaluate the technical condition of machinery, mechanisms, equipment of increased danger and supervise their safe operation in accordance with the requirements of regulatory and legal acts on occupational safety and health.
The document defines the following types of technical inspection of production equipment:
- primary,
- periodic,
- extraordinary,
- expert examination.
For each type of inspection and expert examination, cases have been identified. For example, an emergency equipment inspection is carried out by:
- after repair, modification (reconstruction or modernization) of the specified production equipment;
- after the interruption of the operation of the said production equipment for more than 12 months, if the conditions of its storage did not meet the requirements of normative legal acts on occupational safety and health.
The employer’s duty is also to provide employees with information and written instructions on safety, health and life during the operation of production equipment, which in particular must contain information on:
- conditions of use of production equipment;
- predictable non-professional situations;
- practical recommendations taking into account the experience of safe use of production equipment (if necessary).
Failure to comply with such requirements may lead to penalties for breach of labor protection laws.
The Supreme Court of Ukraine by its decision of 30.03.18, in the case No. 812/292/18 (Proceedings No. Пз/9901/22/18) ruled that taxpayers located and registered in the tax authorities in the ATO zone can not be applied penalties and penalties for untimely payment of the unified contribution.
In its decision, the board of judges of the SCU states that there are grounds for suspending or not applying sanctions. In this way, it called the stay of the payers of the unified contribution at the time of making a decision on registration in the revenue and fee bodies located in the territory of settlements, where ATO to be conducted.
The court also pointed out circumstances that may affect another application of substantive law than in the exemplary case:
- the presence of a payer of the unified contribution registered in the ATO zone is registered in the tax authorities located outside such territory;
- failure by the payer of the unified contribution of his/her duties that arose before and/or after the end of the ATO.
