The President of Ukraine signed the Law“On Amendments to the Tax Code of Ukraine and certain other legislative acts of Ukraine”, which entered into the force on August 3, 2014.
Henceforth, a new National tax– the war tax is imposed, temporary, up to January 1, 2015. It would be withheld at 1,5% rate of individual incomes.
Also, the excise levy on tobacco products is increased by 5%; drinks, which are classified now as dietary foods and contain ethyl alcohol 8, 5% and more.
Up to January 1, 2015 the rents on iron ore is increased from 5% to 8%, oil – from 39% to 45%, the gas from reserves to 5 km – from 28% to 55%, the gas from reserves over 5 km – from 15% to 28%.
In addition, the “threshold” of compulsory registration of economic entity by VAT payer is going to be increased since November 1, 2014 – from UAH 300 thousands to UAH 1 million. At the same time, the regime of exemption of VAT taxation on export of grain and industrial crops is extended up to December 31, 2014 including.
Instead, the exemption of VAT taxation on timber supply, fuel wood and timber industry waste is abolished; the taxation at the “0” rate of common carrier services with high-speed trains Intercity + is abolished.
All the invoices are subject to the registration in the Unified register of tax invoices from the January 1, 2015, regardless of their amount, and the electronic administration system of value added tax is adopted from November 1, 2014.
Another innovation is the introduction of the calculation formula for VAT amount assessment, the taxpayer is entitled to issue the tax invoice for this amount.
The President of Ukraine signed the Law of Ukraine “On Amendments to the Law of Ukraine “On State Budget of Ukraine for 2014” of 31.07.14, № 1622-VII. The revenues and expenditures parts are adjusted in the State estimate, and the limits of expenditures of Social Insurance Fund for temporary disability and Social Insurance Fund for Unemployment are enshrined.
It should be added that before the end of the ATO, the monthly wages are charged only in the position salary amount for the Cabinet of Ministers of Ukraine members, heads of central executive bodies and other government agencies (except for agencies, which departments are involved in ATO conducting) as well as for people’s Deputies. The Cabinet is instructed to approve the special indexation procedure of population incomes within the financial resources of all levels budgets, the budget of the Pension Fund of Ukraine and the budges of other funds of obligatory state social insurance for 2014. The heads of central executive bodies, which carry out control and monitoring in the relevant sectors, are entrusted to optimize the number of authorized staff size as well as to provide the unpaid leave to the employees, to establish the working system for them under part-time work conditions. At that the incentive payments and the position salary raising should be either reduced, or even canceled. At the same time, these heads are authorized to establish the working system under part-time work conditions and provide the unpaid leave to the employees without their consent and notice. The manager determines the duration of the leave on the basis of budget allocations.
Besides, the Parliament authorized the Cabinet to determine the procedure of providing benefits and compensations independently, within available financial resources.
The Verkhovna Rada of Ukraine adopted the Law “On Amendments to the Tax Code of Ukraine and Certain Legislative acts of Ukraine on passive incomes” of 04.07.2014, № 1588-VII. The linear tax rate of individuals’ passive incomes as interests – 15% is provided by the Law.
The rates on royalties’ taxation, investment income and dividends are returned to the edition of the Tax Code of Ukraine (hereinafter – TCU) that was in force up tp July 1, 2014, and according to which such incomes are taxed at rates of 15 (17%) and 5% duly. In the taxation part of other passive incomes from capital allocation, the flat rate – 15% is introduced.
Also the TCU norms on the reassessment procedure of Individual Income Tax in case of early termination of the depositary contract and therefore implementation of income reassessment as interests are specified by the Law.
The amendments to the Budget Code of Ukraine are made also, according to them the income tax as interests, which are accrued on current deposit accounts of individuals, and opened in banks or credit unions, would be transferred to the State Budget.
The transitional provisions provide that the Individual Income Tax, which is withheld from passive income amounts for the period from 01.07.14 to 01.08.14, is liable for the cancellation and should not be paid to the budget.
The Verkhovna Rada of Ukraine adopted the Law “On state aid to the business entities” of 01.07.2014, № 1555-VII, according to which the Antimonopoly Committee would inspect the business entities that have received the state aid.
The force of Law applies to any maintaining of business entities financed by the State or the local resources for goods production or certain types of business activity.
The aid, for purposes of this law, is understood to be the transfer of state resources or the local resources to the separate business entities, and this creates conditions for defacement of economic competition as well as loss of income of the relevant budgets.
The subject to inspection is the state aid, which is provided in subsidies forms and grants, donations, tax advantages, deferral or installment of taxes payment, duties or other compulsory payments, debts forgiveness, including debts for provided state services, penal sanctions cancellation, loss compensation for business entities etc.
The Law comes into effect after three years of its publication day, except for the part two of Art.6, part 1 and paragraphs 6-10 of part two of Art.8, part two of Art.14, which enter into the force from the next day of its publication.
The Ministry of Revenue and Duties of Ukraine in its letter of 17.07.2014, № 17176/7 / 99-99-19-02-02-17 reported: monthly advances on income could be reduced by the advanced payments amounts in dividend payment.
The taxpayers are given the “green light” to reduce the amounts of monthly advanced payments to be paid in 2014, by the amounts of advances in dividend payment, which exceeded the income tax liabilities in 2013, as well as the installment amounts, paid in dividend payments in 2014.
The reduction of assessed amount of tax is reflected in Annex Salary, which total value is transferred to line 13 “The reduction of assessed amount of tax” of the income tax declaration.
The amount of assessed advance installment due to dividends payment, which is charged to reduce the assessed amount of tax and counted in determining of line 13 of Annex Salary value, is reflected in line 13.5.1 of Annex Salary.
It is useful for the taxpayer to submit with the application on entering of paid amounts of advance installment due to dividends payment in reduction of the amounts of monthly advanced payments of the income tax, which are subject to payment in 2014, to the local office of the Ministry of Revenues, where he is registered.
The Ministry of Justice of Ukraine adjusted the Procedure for the state electronic registration of legal entities. The Order is issued in August 5, 2014; the procedure for the state electronic registration of legal entities is improved by this Order. For this purpose, the Ministry of Justice introduced the concept of “electronic stamp of state registrar on carrying out of the state registration of the legal entity”.
The stamp is understood to be an electronic document, which is an integral part of notarized statutory documents by the state registrar electronic digital signature and includes the information on the carrying out of the state registration of the legal entities, specified in the stamp description for marking the statutory documents by the state registrar during the registration.
The Norm comes into effect after the six months of the Order publication.
