The Cabinet of Ministers of Ukraine approved a provision regulating the procedures of the State fiscal service by dividing it into the State Tax and State Customs Services.
The document defines their legal status, the main tasks, rights and duties of employees related to the implementation of tax and customs policy, as well as establishes the powers of the chairmen of the State Tax and State Customs Services.
According to the provision, the State Tax Service (hereinafter – STS) is a central executive body that implements state tax policy, state policy on administering the unified contribution to compulsory state social insurance, state policy in the field of combating offenses during the application of tax legislation, as well as legislation on the unified contribution and other legislation, the control of which is entrusted to the STS. Activities of the State Tax Service are directed and coordinated by the Cabinet of Ministers through the Minister of Finance.
The provision stipulates that the State Customs Service is the central executive body, which implements state customs policy, state policy in the field of combating offenses during the application of customs legislation. Its activities are directed and coordinated by the Cabinet of Ministers through the Minister of Finance.
Approval of the provisions for each of the services is a prerequisite for a transparent contest for the appointment of an effective and reform-oriented leadership.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On some transfer pricing issues” of 13.02.2019, No. № 513/6/99-99-15-02-02-15/ІПК reported that on 01.01.2019 a new wording of para. 39.2.1.5 of the Tax Code of Ukraine (hereinafter – TCU) came into force. From now on, if in the chain of business transactions between a taxpayer and a non-resident provided for in paragraphs. 39.2.1.1. of TCU, ownership right of the object (result) of such a transaction before transferring from the taxpayer to such a non-resident (in the case of export transactions) or from such a non-resident to the taxpayer (in case of import transactions) passes to one or more persons and a transaction between the relevant resident and none of these persons is not recognized by the taxpayer as a controlled transaction, such transaction is considered to be controlled between the taxpayer and that non-resident if the persons that had the ownership right:
- do not perform in such a set of transactions of essential functions associated with the acquisition (sale) of goods (works, services);
- do not use in such a set of significant assets transactions and/or do not assume significant risks for the organization of the acquisition (sale) of goods (works, services).
New wording of para. 39.2.1.5 of TCU lost the link exclusively to a related non-resident person and, as of now, belongs to any controlled transactions provided for in subsections. 39.2.1.1 of TCU.
If the intermediary is a resident of Ukraine, that is, transactions between the taxpayer and the intermediary cannot be considered as controlled, then the acquisition of goods by the payer – a resident from a non-resident, if the ownership of such goods passes first to another resident who does not perform essential functions and does not use substantial assets, are considered to be controlled between such resident payer and non-resident.
The resident payer in this case should submit a report on controlled transactions.
At the same time, each specific case concerning the recognition of transactions for the import or export of goods (raw materials) through a reseller of Ukraine, to which the ownership right transfers, controlled transactions should be considered taking into account the contractual conditions, the circumstances of the implementation of the relevant transactions and all primary documents, the registration of which they were accompanied.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Value Added Tax” of 19.02.2019, No. 614/ІПК/26-15-12-01-18 reported: if the mandatory requisite of the tax invoice (hereinafter – TI) which refers to the full or shortened name of the seller/buyer corresponds to the name indicated in the statutory documents of such persons, or the mandatory requisites of TI concerning the tax number of the seller/buyer corresponds to the numbers specified in the Register of value added tax payers (hereinafter – VAT) with an additional indication of the numerical branch numbers, then TI is not subject to correction.
In case the mandatory requisites concerning the description (nomenclature) of goods/services is indicated in a foreign language because of the impossible translation from the foreign language of the trademark or the name of the goods into the state language and in order to preserve the identification of the product, this does not prevent the identification of the performed transaction, its contents (goods/services supplied), period, parties and amount of tax liabilities, then this TI is not subject to correction.
The National Bank of Ukraine adopted the Resolution “On Amendments to the Regulation on the Application of the Electronic Signature in the Banking System of Ukraine” of 25.02.2019, No. 42. This document improves the conditions for the use of electronic signature and electronic stamp in the banking system of Ukraine during the creation, processing and storage electronic documents related to the commission of transactions.
Thus, new developments:
- specified the types of electronic signature and electronic seal used in the banking system of Ukraine are;
- clarified the requirements for the use of each type of electronic signature and electronic seal;
- established requirements on the creation and storage of electronic documents in the banking system.
New provision was developed in connection with the entry into force of the Law of Ukraine “On Electronic Trust Services” of 07.11.2018.
It should be recalled that the use of paperless technologies during the provision of banking services can significantly reduce unproductive costs and improve the efficiency of banking transactions and the quality of customer service.
The Auditorꞌs Chamber of Ukraine on its website reported that the main criterion for determining the range of business entities subject to mandatory audit is the obligation imposed on them by the law, to publish or provide financial statements (consolidated financial statements) to users of financial statements together with an audit report.
Having analyzed the legal framework, the Auditorꞌs Chamber of Ukraine have come to the conclusion that the following companies are the subject to the audit of the financial statements:
- companies of public interest;
- public joint stock companies;
- subjects of natural monopolies in the national market;
- economic entities that carry out activities in the extractive industries;
- medium-sized companies (in the meaning of the Law on Accounting);
- financial institutions belonging to micro and small companies;
- companies of the state and municipal sectors of the economy.
The Civil Service of Ukraine on Labor Issues on its website reported that according to Article 26 of the Code of Labor Law (hereinafter –Labor Code), during the conclusion of an employment contract, it may be understood by an agreement of the parties to verify the employee’s compliance with the work entrusted to him/her. The condition for the probation must be indicated in the order (appointment) of the recruitment.
The term of the probation period during recruitment, if the other is not established by the legislation of Ukraine, cannot exceed three months, and in separate cases, in agreement with the relevant elective body of the primary trade union organization, – six months. The probation term during the recruitment of workers cannot exceed one month. The days when the employee actually did not work regardless of the cause are not included in the probation term.
When the probation period is over, and the employee continues to work, then he/she is considered to be able to pass the probation. The following termination of an employment contract is allowed only on general grounds.
The labor legislation, including the remuneration of labor in the amount specified by the parties’ agreement, with state and industry guarantee of wages employees are applicable to the employees during the probation period.
In particular, the state social guarantees of labor compensation include the minimum wage established by law for the monthly (hourly) labor standard performed by the employee. From 01.01.2019 it reaches UAH 4 173.0.
According to the current legislation, the minimum wage consists of the basic (tariff) part of the wage (salary, tariff rate) and additional wages (additional payments, allowances, production awards, other incentive payments).
The actual worked time is paid to employees based on a salary (tariff rate) or depending on performance of standard of production and piece wage-rates, taking into account the increases, surcharges and allowances stipulated by the current legislation.
Consequently, if the employee fulfills the monthly labor standard, the wages must be paid to him/her, taking into account various components of it, stipulated by the terms of payment, not lower than the minimum wage (UAH 4 173. 0).
If the employee fulfills the monthly labor standard and the salary accrued to him/her is lower than the statutory minimum wage, the employer is obliged to pay an additional payment to its level, which is paid monthly on a salary basis.
If the employee did not fulfill the monthly standard of work, was on leave, part-time work, etc., in such cases, the payment of labor is made in proportion to the worktime standard.
