The Cabinet of Ministers of Ukraine by its resolution amended the Methodology for determining the amount of damage caused as a result of unauthorized occupation of land plots, use of land plots for other purposes, removal of soil cover (fertile soil layer) without special permission.
Thus, the resolution provides:
- increase the size:
- the amount of average annual income from the use of land for its intended purpose;
- average annual additional income received as a result of the actual use of land for other purposes;
- regulatory losses from the destruction of soil cover (fertile soil layer) without special permission, which are used to calculate the amount of damage caused by unauthorized occupation of land, use of land for other purposes, removal of soil cover (fertile soil layer) without special permission;
- amendments to the Methodology in such part:
- the procedure for applying the indexation coefficient of the normative monetary valuation of land (IC), which is used to calculate the amount of damage caused by unauthorized occupation of land, use of land for other purposes, removal of soil (fertile soil layer) without special permission.
The implementation of the resolution will facilitate:
- reduction of the number of violations in the field of protection and use of land;
- increase in revenues to state and local budgets according to the relevant codes of budget classification and from the payment of charges for land.
The Cabinet of Ministers of Ukraine has approved a resolution on some issues of financial monitoring, which ensures that the acts of the Government are brought into line with the new requirements of the legislation on financial monitoring.
SPFM (subjects of primary financial monitoring – accounting companies, auditors, notaries, lawyers, etc.) will be able to submit information on financial transactions subject to financial monitoring through the user account of the financial monitoring system. Such innovations will reduce material and time costs in the performance of their duties in this area.
SPFM is also given the opportunity to fulfill its responsibilities in terms of submitting new types of notifications, namely:
- case reporting on suspicious financial transactions or customer activities;
- discrepancies in the information on final beneficial owners of clients, established during the due diligence of the client (so-called customer due diligence), with the information entered in the USR, and the application of a risk-oriented approach.
Updated procedures for submitting information for registration (deregistration) of SPFM; information on financial transactions subject to financial monitoring; keeping records of the information provided and records of the subjects of primary financial monitoring by the State Financial Monitoring Service..
The State Tax Service of Ukraine has clarified the procedure for the value added tax payer (hereinafter – VAT), when it is classified as risky.
If a taxpayer is included in the list of risky in accordance with paragraphs 1-8 of the Criteria for riskiness of taxpayers, it is first necessary to provide documents for exclusion from the list of risky.
The documents required to consider the exclusion of a taxpayer from the list of taxpayers who meet the risk criteria may be:
- agreements, in particular foreign economic contracts, with annexes to them;
- agreements, powers of attorney, acts of the governing body of the taxpayer, which formalize the powers of persons who receive products in the interests of the taxpayer to carry out the transaction;
- primary documents on supply/purchase of goods/services, storage and transportation, loading, unloading of products, warehouse documents (inventory descriptions), including invoices, acts of acceptance-transfer of goods (works, services) taking into account the existing standard forms and industry specifics, invoices;
- settlement documents and/or bank statements from personal accounts;
- documents on confirmation of conformity of products (declarations of conformity, quality passports, certificates of conformity) which are provided by the contract and/or legislation;
- other documents confirming the taxpayer's non-compliance with the taxpayer's risk criteria.
The regional level commission considers the information and copies of documents submitted by the taxpayer, within seven working days following the date of their receipt, and makes the appropriate decision.
Based on the results of consideration of information and copies of documents, the regional level commission makes a decision on compliance/non-compliance of the taxpayer with the taxpayer's risk criteria, which the taxpayer receives in the user account on the day it is made.
The State Tax Service of Ukraine through the Office of Large Taxpayers has reminded that the legislation clarifies the cases of non-accrual of depreciation for the period of non-use (operation) of fixed assets in economic activities, defined in paragraphs 138.3.1 of the Tax Code of Ukraine (hereinafter – Tax Code).
In the updated version of the Tax Code from August 8, 2020, depreciation for tax purposes is not accrued for the period of non-use (operation) of fixed assets in economic activities in connection with their conservation.
It should be reminded that earlier the rules of depreciation accrual defined defined in paragraph 138.3.1 of the Tax Code were also specified. Thus, in particular, starting from May 23, 2020, there was a rule according to which no tax depreciation was accrued for the period of non-use (operation) of fixed assets in economic activities in connection with their modernization, reconstruction, completion, equipment and conservation. Currently, the list of operations without depreciation deductions has been reduced to conservation.
In accordance with Order of the Ministry of Finance ‘On approval of Methodical recommendations for accounting of fixed assets’ No. 561 of September 30, 2003 depreciation is terminated from the month following the month of disposal of fixed assets, its transfer to reconstruction, modernization, completion, equipment, conservation. Accrual of depreciation is resumed from the month following the month of commissioning of the facility after reconstruction, modernization, completion, equipment, conservation.
Therefore, if the depreciation of fixed assets was not carried out during the period of non-use (operation) of fixed assets in economic activities in connection with their modernization, reconstruction, completion, retrofitting from June 2020, then for the purposes of the updated requirements of paragraph 138.3.1 of the Tax Code such accrual may be resumed from September 2020.
The State Tax Service of Ukraine in category 103.02 ZIR has answered the question: Is PIT imposed on the cost of free services received by the PIT payer in the form of funds paid by the employer to the health care institution for testing employees for coronavirus disease (COVID-19)?
Taxation of income of individuals is regulated by Chapter IV of the Tax Code, Art. 165 of which defines the list of income that is not included in the total monthly (annual) taxable income of the taxpayer.
Thus, paragraph 165.1.19 of the Tax Code stipulates that the total monthly (annual) taxable income of the taxpayer does not include, in particular, funds or value of property (services) provided as assistance for treatment and medical care of the taxpayer, provided that the costs associated with the provision of such assistance.
If the employer does not comply with the requirements of paragraph 165.1.19 of the Tax Code, the cost of services provided free of charge to individuals – employees in the form of testing for coronavirus disease (COVID-19), is included in their total monthly (annual) taxable income as an additional benefit and is subject to personal income tax (hereinafter – PIT). In this case, the employer must perform all the functions of a tax agent, defined by the Tax Code.
The Ministry of Justice of Ukraine has made changes to the Procedure for the sale of seized property. This was reported by the press service of the ministry.
The functions of administrator and organizer in the system of realization of seized property are divided: ProZorro.Sales became the administrator, and SETAM – the organizer.
The purpose of these changes is to increase the transparency of the sale of debtors' property, increase the number of e-bidders interested in acquiring seized property, which should lead to an increase in the value of such property and, consequently, increase revenues to the state budget.
Improvements to the Procedure for the sale of seized property also include:
- delimitation of the function of administration of the electronic bidding system and organization of electronic bidding;
- improving the procedure for electronic bidding and fixed price bidding;
- simplification of the return of guarantee fees to electronic bidders;
- settlement of the grounds, procedure and consequences of disqualification of the participant of electronic bidding (bidding at a fixed price).
These changes take effect from the date of posting on the website of the Ministry of Justice the announcement of the beginning of the sale of seized property in the electronic trading system, the administrator of which is the state enterprise PROZORRO.SALE.
The State Labor Service of Ukraine has explained the peculiarities of hiring an employee who is registered as sole proprietor.
According to Art. 43 of the Constitution of Ukraine, every citizen of Ukraine has the right to work, as well as to create conditions for the state to fully exercise this right.
According to Part 2 of Art. 21 of the Labor Code of Ukraine (hereinafter – Labor Code) sople proprietors (hereinafter – SP) have the right to enter into employment contracts at one or more enterprises, institutions or organizations simultaneously, if it does not contradict the law or collective agreement and is agreed by the parties.
According to paragraph 1 of Regulations on part-time work of employees of state enterprises, institutions, organizations No. 43 of June 28, 1993, approved by the order of the Ministry of Labor, Ministry of Justice, Ministry of Finance, part-time work is the employee's main job and other regular paid work under an employment contract at the same or another enterprise, organization, institution or for a citizen (entrepreneur, individual) for hire. SP registered in accordance with the procedure established by law has the right to work under an employment contract for one or more employers.
The main place of work of SP is the enterprise (institution) in which the employment record book of this employee is located.
