The Cabinet of Ministers of Ukraine by its Resolution “Certain issues of funds maintenance of obligatory state social insurance” of 23.08.16, № 523 approved the procedure for establishing the treasury services of money of the Social Insurance Fund of Ukraine and the Fund of obligatory state social insurance of Ukraine in case of unemployment.
It should be recalled that the Social Insurance Fund of Ukraine was established by merging the social insurance funds for temporary disability and accidents at work. The Budget Code of Ukraine provides for treasury services of money of the Social Insurance Funds by the procedure determined by the Government.
In accordance with the procedure, the Social Insurance Fund of Ukraine will be able to open accounts in the Treasury and accumulate insurance funds for uninterrupted provision of insurance benefits and social services for insured persons.
The State Fiscal Service of Ukraine in its letter “On the exemption from payment to the state budget of a part of the net profit of public enterprises belonging to research institutions” of 05.07.16, № 14558/6/99-99-15-02-02-15 reported: if a trade union organized and paid weekend tours or summer holiday without buying package tours for its members and their families, the cost of such Social bonuses should be considered as an additional benefit for an individual and should be included in the total monthly (annual) taxable income. Therefore, these amounts are the subject to the personal income tax and the war tax on a regular basis.
The tax authorities suggest reflecting such amounts the sign of income “126” in the tax calculation of № 1ДФ form.
It should be reminded that according to sub-para. 165.1.35 of the Tax Code of Ukraine, if a trade union buys a ticket for a vacation or recreation for its member, such amounts are not the subject to the personal income tax.
The State Fiscal Service of Ukraine in its letter “On updating of the register of non-profit institutions and organizations” of 25.08.16, № 28602/7/99-99-15-02-01-17 focused attention on important points related to the introduction of new procedure of keeping the Register of non-profit institutions and organizations (hereinafter − Register).
In particular, the tax authorities before 16 September should send to “old” non-profit institutions (which were included in the register as of 13.08.15) written requests for responses regarding the following:
- compliance of non-profit organization with the requirements established by para. 133.4 of TCU, and provision of copies of constituent documents certified by the organization;
- certified by housing associations (hereinafter – HA) copies of documents confirming the date of adoption of the completed construction of a residential building and the fact of the construction or acquisition of such a building by the HA.
The non-profit organizations have to respond the requests within a month. Such requests should not be sent to non-profit organizations, constituent documents of which are published on the portal of electronic services and meet the requirements established by the statutory documents of non-profit organizations by para. 133.4 of TCU.
The registration application in the form № 1-РН should not be submitted by the “old” non-profit organizations. If they meet the requirements of non-profits established by para.133.4 of TCU, they should be included in the new register (para.34 subsection 4 of sec. XX).
The documents provided at the request of non-profit organization should be considered by the tax authorities within a month from the date of receipt. Controllers emphasize that even during their review it is found that they do not meet the “non-profit” requirements (the non-profit organization should be informed about this), so this organization could not be deleted from the registry before 01.01.17. Non-profit organization before that date should bring its statute into line with the established requirements (the HA − also submits certified copies of the above mentioned documents). Otherwise such non-profit organizations will lose non-profit status from the following year.
The tax authorities in the letter described the differences between the old and the new procedure of keeping the register. In particular, there are amendments in structure of symptom codes of unprofitability, order of submission of documents for inclusion in the register, form registration statement № 1-RN, as well as grounds for exclusion of non-profit organization from the register.
The State Fiscal Service of Ukraine in its letter “On the procedure of rounding the indexes in the column “Price of provision of unit of goods/services excluding VAT” of tax invoice” of 10.08.16, № 17270/6/99-99-15-03-02-15 reports that it is not limited the number of characters that indexes of group 6 “Number (volume, amount)” of tax invoice can contain after the decimal point. The necessary number of characters is considered to be that is sufficient for the proper calculation of cost indexes in lines V−IX of tax invoice.
The correct calculation of cost indexes of tax invoice is considered to be when as a result of the product of columns 6 and 7 (quantity and price) is a number of more than two characters after the decimal point and rounding to the second character after decimal point does not raise such a sign to “1” (one).
It should be recalled that all columns of tax invoice that have cost indexes are to be filled in hryvnias with kopecks.
The State Fiscal Service of Ukraine in its letter “On the procedure of formation of the tax credit” of 09.08.16, № 17186/6/99-99-15-03-02-15 explained that VAT payers had the right to form a tax credit under a tax invoice registered in URTI in the form, which became invalid at the date of registration. If the registration of such a tax invoice is not denied for the seller, the old form of tax invoice cannot be the only grounds for non-recognition of tax credit for the buyer under this document.
A new form of tax invoice was approved by the Ministry of Finance of Ukraine “On Approval of tax invoice form and the procedure for filling the tax invoice” of 31.12.15, № 1307 and it was implemented on 1 April 2016.
The State Fiscal Service of Ukraine in its letter “On taxation of a non-resident activity in the customs territory of Ukraine without creating a permanent establishment, tax filing capabilities and responsibility for late payment of tax liabilities” of 11.08.16, № 17492/6/99-99-15-02-02-15 explained, accordingly, the issue of the taxation of a non-resident activity in the customs territory of Ukraine, submission of tax reporting by him/her and responsibility for late payment of taxes.
The tax authorities emphasized that legal entity – non-resident, which conducted business in Ukraine through its separate division for tax purposes should register such a separate unit as a permanent establishment regardless of whether he/she engaged in business activities currently, plans to implement it in the future.
Representation of non-resident can submit statements of income tax and VAT for the periods prior to its registration. At the same time, the declaration of the income tax could be submitted in hard form, but the tax return of VAT − only in soft form.
Representatives of the fiscal authorities note that if the taxpayer submits tax returns with violation of the terms, the postponement for payment of tax liability specified in it is not provided. Thus, such a taxpayer is liable in the form of:
- penal sanctions for violations of reporting deadlines according to paragraph 120.1 of TCU;
- penalty for violation of terms of payment of tax liability according to para. 126.1 of TCU. At the same time on the basis of para. 35 of sub-section 10 of sec. XX of TCU, penalties accrued on the amount of tax liability are to be cancelled. However, only if the taxpayer paid it in due time without appeal against tax notice-decision.
If non-residents carry out economic activities without registration of a permanent establishment by the tax payer, and also do not submit tax reporting for the period of its implementation, the controllers based on the results of the audit independently determine the amount of tax liability and impose a fine on them according to Art. 123 of TCU regardless of whether non-resident paid tax or not.
The tax authorities underline that non-residents can expect a fine for non-recognition (incomplete and/or delayed recognition) in pay desks of cash in the size of 5-fold of non-recognized amount. But only within the period of limitation that in general is 1 095 days (Art. 102 TCU).
The Ministry of Finance of Ukraine on its official website informed on the presentation of working version of the package of tax amendments of the Committee of the Verkhovna Rada.
Key amendments provide for, in particular, the introduction of tax holidays for 5 years for newly established small businesses, transparent VAT refunds through the unified register and transfer databases from the State Fiscal Service to the Ministry of Finance. Liquidation of the tax police is offered in a separate draft law, which is agreed with the concerned authorities now.
The Ministry of Social Policy of Ukraine by its order “On approval of the unified act form prepared on the results of routine (unscheduled) inspection of meeting by business entity of the legislative requirements in the business of mediation in employment abroad” of 09.08.16, № 865 approved the form of the act prepared on the results of a routine (unscheduled) inspection of compliance of economic entities with legal requirements in the business of mediation in employment abroad. As it is known, this kind of activity is the subject to licensing.
Consequently, there is a form of the inspection report, where the violation of mediators in employment will be recorded.
