The Verkhovna Rada of Ukraine adopted draft law No. 1220 on the removal of legislative conflicts and vacuum.
Registration of property rights and fixed charge
It is proposed to amend the Law on Notaries and give notaries the right to demand from individuals and legal entities the information and documents necessary for committing notarial acts, conducting state registration of real property rights and fixed charge, as well as for the fulfillment of others powers provided by law.
Certify inscriptions will also be made when issuing a duplicate of the document, imposing a ban on alienation of immovable property (property rights to immovable property).
At the request of a natural or legal person, any transaction involving them may be notarized.
Place of notarial acts, certification of documents
It is also provided that notarial acts may be carried out at the premises of a diplomatic mission or consular post. Officials of consular offices of Ukraine will be able to certify the accuracy of copies of documents and the authenticity of the signature on the documents.
Life certificate
The notary attests to the fact that the individual is alive at his/her request.
At the request of legal representatives (parents, adoptive parents, guardian), the fact that a minor child, incapacitated natural person is alive is certified.
At the same time, the fact that a minor child, an individual with a disability, is alive is attested at their request and with the consent of legal representatives (parents, adoptive parents, guardians).
A life certificate is issued to confirm that the person is alive.
Certificate of fact of stay of an individual in a certain place
Having attested to the fact of a person being in a certain place, the notary issues a certificate.
The fact is attested at the request of the physical person; at the request of legal representatives of a minor, incapacitated person; at the request of a minor, a person with disabilities (subject to the consent of legal representatives).
The State Tax Service of Ukraine in the category 102.20.01 “ZIR” answered the following question: “By what form identifier in electronic form the income does tax payers submit the corporate income tax return for the reporting (tax) year 2019 (including specifying)?».
On December 20, 2019, Order of the Ministry of Finance No. 481 (hereinafter – Order No. 481), which amended the Corporate income tax return form, approved by the Ministry of Finance Order No. 897 of October 20, 2015 (hereinafter – Return).
Since the issuance of Order No. 481 is due to changes in tax legislation that came into force on January 1, 2019, the taxpayers of corporate income tax are advised to file a declaration for the reporting (tax) year 2019 in an updated form.
At the same time, item 46.6 of the Tax Code of Ukraine (hereinafter – TCU) establishes that if changes in tax rules amend the forms of tax reporting, before determining new forms of returns (settlements) that enter into force for the preparation of statements for the tax period that comes after the tax period, in which they have been made public, the valid forms of return (settlements) are valid until such determination.
The official web-portal of the State Tax Service of Ukraine under the heading “E-reporting” > “E-reporting for taxpayers” > “Information and analytical support” > “Register of forms of electronic documents” contains electronic forms of return (including specifying):
- Return under updated form with ID J0100118;
- Return (as amended by Ministry of Finance Order No. 467 dated April 28, 2017), as amended by Ministry of Finance Order No. 842 dated October 19, 2018, the adoption of which will also be ensured by April 1, 2020 with the form ID J0100117.
The Supreme Court of Ukraine considered the complaint about the consideration by the permanent representative office of the amounts of value added tax (hereinafter – VAT) paid by the parent company in the framework of the economic activity of that representative office as a part of the tax credit.
According to the position of controllers, the funds paid by a non-resident parent company to non-residents for services rendered in the territory of Ukraine cannot be taken into account as a negative item for the disputed period and, as a consequence, declared for budgetary compensation. After all, such funds are not paid by the recipient of the services contrary to the provisions of para. “b”, item 200.4 of the TCU.
At the same time, the complainant pointed out that the representative office, given the peculiarities of the Ukrainian legislation, had no right to transfer funds to the accounts of non-resident legal entities on its own, except for the non-resident legal entity whose interests it represented. With this in mind, the parent company made the appropriate payment to the service providers.
Having analyzed the rules of the TCU, the Supreme Court of Ukraine issued the following ruling of December 9, 2019 in case no. 805/1740/16-a.
In the case of registration of a non-resident representative as a VAT payer, the rules of the Tax Code stipulated for VAT payers shall apply to him/her. Permanent representation, in accordance with the requirements of the current legislation of Ukraine, is deprived of the opportunity to transfer funds from its current account to the account of a non-resident legal entity, except for the person it represents. However, the latter, as a VAT payer in the case of the acquisition in the course of business activities of services supplied by non-residents to the customs territory of Ukraine, has the right to make a tax invoice, which is the basis for attributing the VAT amounts to the tax credit of subsequent periods. However, provided that the tax liability is included in the tax return for the relevant period.
Therefore, the court finds the stated conclusion of the supervisory authority erroneous.
From 1 January 2015, one of the mandatory conditions for the taxpayer to receive a budget refund is the fact that such amounts are paid to the State Budget or to suppliers.
In this case, there was no actual VAT payment for business operations to provide services by non-residents to the representative office with their place of delivery in the customs territory of Ukraine. However, by virtue of item 200.12 of the TCU, the representation had duly recorded such amounts in the tax liabilities of the previous reporting period and the tax credit of subsequent periods.
In the opinion of the panel of judges, the negative value created in such circumstances cannot be used by the taxpayer as a part of the amounts subject to budgetary compensation. It can only be used to pay off tax debt (if any) or to be included in the tax credit for the next reporting period. Therefore, the amount is such that the complainant wrongfully included in the amounts subject to budgetary compensation, but is legitimately reflected as a component of a negative value formed in previous periods.
The State Labor Service of Ukraine explained all the intricacies of registration of employee at work.
Labor experts reminded that companies, private entrepreneurs, as well as individuals who hire chefs, nannies, drivers, etc. can hire employees. In doing so, they all become employers and have to comply with labor laws.
When should I conclude employment contract?
In an employee-employer relationship, an employment contract is always concluded. A civil agreement on provision of services is concluded in the case of cooperation with an independent contractor or a self-employed person, that is, engaged in business.
Typically, a person is an employee if:
- the employer appoints the person to a position with specific responsibilities, determines working schedule and working hours;
- the employer controls how, when and where the person performs the work;
- the employer pays a fixed hourly, weekly or monthly salary;
- the employer pays for the work process and not for its result;
- the employer provides materials and equipment to perform the work;
- the employer provides days off and paid vacations, etc.
Are the rules for registration of employees different for legal entities, individuals or SPs?
The order of registration of employment relations with employees is the same for all employers. It has three main steps:
- conclusion of an employment contract;
- registration of the employment order;
- notification to the State Tax Service.
What documents should an employee provide?
To conclude an employment contract, an employee must provide:
- a passport or other identity document;
- individual tax number;
- employment book (if available).
If required, you may be asked to provide education documents, health information, and more.
It is forbidden to require employees to provide information about their party and nationality, origin, registration of residence or stay.
Is it mandatory to enter into a written employment contract?
The employment contract can be made orally or in writing.
Written contract is required:
- when the employee insists;
- in the case of an organized recruitment of employees;
- working in areas with special natural conditions and high health risks (for example, radioactively contaminated territory);
- in the case of a contract;
- in the case of a contract with a minor;
- if the employer is a private entrepreneur or an individual;
- for employees of religious organizations;
- for employees undergoing alternative service;
- for employees involved in community service;
- for farm workers.
In other cases, an oral contract may be concluded. This requires the employee to write a job application to the manager. The manager, in turn, states the decision on the statement.
What is the form of the employment contract?
Individuals and private entrepreneurs must use an approved form.
Legal entities can use an arbitrary form of contract, stating:
- work responsibilities of the employee;
- work and rest schedule;
- benefits, guarantees, indemnities;
- salary and bonus conditions;
- surcharges, allowances and more.
An employment contract can be concluded for:
- indefinite term;
- fixed term;
- duration of certain work.
After the employment contract has been concluded, an order or regulation for hiring an employee should be issued.
What after signing a contract?
The employer must inform the State Tax Service of Ukraine about the employment of the employee.
Keep in mind:
- the notice is submitted before the employee begins work under the approved form;
- this is done by the business owner, or person authorized at the place of registration as payers of the single social contribution;
- the notification can be submitted in soft or hard copy (up to five employees);
- the information provided is entered in the register of insurers and the register of insured persons.
Since 2015, individuals and private entrepreneurs have not registered employment contracts with the State Employment Service. They independently number contracts and make records in the employment record books.
