The Cabinet of Ministers of Ukraine approved three important legal acts in the framework of the introduction of electronic traceability of alcoholic beverages, tobacco products and liquids used in electronic cigarettes. In particular, these documents define:
- procedure for drawing up and form of excise electronic document;
- procedure for the formation of extracts, the form of the extract, as well as the Procedure for creation and operation, the Procedure for the formation of the Electronic system of circulation of alcoholic beverages, tobacco products and liquids used in electronic cigarettes;
- requirements for the algorithm and criteria for forming a unique group identifier.
The aforementioned acts were adopted in compliance with the requirements of the Tax Code of Ukraine and the Law of Ukraine "On State Regulation of the Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Bioethanol, Alcoholic Beverages, Tobacco Products, Tobacco Raw Materials, Liquids Used in Electronic Cigarettes, and Fuel."
The introduction of the new system and the test period require additional time for the proper adaptation of the business to the requirements of the new regulations. There is still a need to adopt other by-laws necessary for the full functioning of the system, as well as to develop technical requirements for working with the electronic system.
The Verkhovna Rada of Ukraine adopted in its entirety draft law on the historic increase in taxes No. 11416-д .
According to the draft document, the Law provides for:
- increase of the rate of military tax from 1.5 to 5% for hired employees (for servicemen of the Armed Forces of Ukraine, Security Service of Ukraine, Foreign Intelligence Service, Main Directorate of Intelligence of the Ministry of Defense, National Guard, border guards, Administration of State Guard and State Special Communication Service, the rate remained at 1.5%, and those, who performs combat tasks, are also exempt from this tax) from the date the law becomes effective;
- from October 1, 2024, the establishment of a military levy for all sole proprietorships of the I, II and IV groups in the amount of 10% of 1 amount of the minimum salary (i.e. 800 UAH every month);
- from October 1, 2024, a military levy in the amount of 1% of income for all sole proprietorships and legal entities of the III group of the single tax;
- return to monthly, instead of quarterly, consolidated reporting of personal income tax, military levy, and single tax from January 1, 2025;
- increase in the income tax rate for banks to 50% for 2024;
- increase in the income tax rate for financial institutions (except insurers) from 2025;
- establishment of monthly income tax advance payments (if the owner is a legal entity) and personal income tax (if the owner is an individual) for each gas station in the amount of UAH 30,000 to 60,000;
- tying advance income tax payments for money changers to euros;
- increase by 14% of the minimum tax liability for agricultural land and establish the minimum amount of such liability for 1 hectare (1,400 UAH for arable land);
- loss of the simplified system for group IV, if the debt for the minimum tax liability is more than two quarters;
- increasing the rent rate for the extraction of crushed stone, sand and kaolin;
- increase of minimum retail prices for wines and wine products (cognacs and vermouths) by 50%;
- · exemption from taxation of funds accrued under the "National Cashback " program;
- · exemption from personal income tax of foreign aid received by citizens in other countries for temporary protection (for 2022, 2023 and subsequent years until the end of martial law.
The Ministry of Finance of Ukraine by Order No. 460 of September 24, 2024, made changes to the National Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates".
The purpose of the changes is to bring some norms of NAS 21 into compliance with the requirements of IFRS for small and medium-sized enterprises and IAS 21 in the part of forming in accounting information about operations in foreign currencies.
It has been clarified that transactions in foreign currency during the initial recognition are reflected in the reporting currency by converting the amount in foreign currency using the exchange rate at the beginning of the day, the date of the economic transaction (the date of recognition of assets, liabilities, equity, income and expenses).
In particular, item 5 of the Standard is set out in the following wording:
"5. Transactions in foreign currency during initial recognition are reflected in the reporting currency by converting the amount in foreign currency using the exchange rate at the beginning of the day, the date of the economic transaction (date of recognition of assets, liabilities, equity, income and expenses). The enterprise can reflect non-cash transactions in foreign currency in the reporting currency in the amount specified in the bank's documents, taking into account the specifics of the bank's application of the exchange rate on the date of the economic transaction."
In addition, item 7 of the Standard was supplemented with new paragraphs with the following content:
"The main characteristic of a monetary article is the right to receive (or the obligation to provide) a fixed (or specified) amount of money or its equivalents.
The main characteristic of a non-monetary article is the absence of the right to receive (or the obligation to provide) a fixed (or specified) amount of money or its equivalents."
The Verkhovna Rada of Ukraine adopted draft law No. 12038-1 in its entirety on advance payment for alcohol and bioethanol producers.
The draft law is aimed at improving the tax legislation of Ukraine in terms of ensuring the full payment of excise tax by producers of ethyl alcohol and bioethanol. The main goal is to prevent the use of shadow schemes for their implementation.
In particular, a new procedure for determining excise tax liabilities for producers of ethyl alcohol and bioethanol is provided. It provides for a guaranteed tax liability, calculated taking into account the productivity of the equipment for the production of products.
The Ministry of Economy of Ukraine, the Ministry of Finance of Ukraine and the Ministry of Internal Affairs of Ukraine by Order No. 23492/439/620 of September 10, 2024 and the Pension Fund by Resolution No. 27-1 of September 10, 2024 approved the Procedure for investigating insurance cases and the validity of the payment of material support.
In particular, the Procedure determines the mechanism of investigation of insurance cases and the justification of the appointment and payment of financial support, including:
- the procedure for exchanging relevant information between the State Employment Center, the Ministry of Finance, the Ministry of Justice, the State tax Service, the PFU and the Administration of the State Border Service ;
- the procedure for reconciliation and/or verification of information submitted by a person during registration or re-registration as unemployed and during the person's stay in the status of registered unemployed, and/or data specified in the insured's documents, on the basis of which the status of registered unemployed is granted (the person is in the status registered unemployed person), financial support in case of unemployment is appointed and paid, social services are provided, as well as information on the basis of which the insured person is granted partial unemployment benefits;
- the procedure for conducting an inspection of the insured, employer or natural person - an entrepreneur who is an insured person, in case of inconsistency of information (data) regarding the person according to the results of the reconciliation;
- drawing up the relevant act based on the results of reconciliation and/or verification.
The President of Ukraine signed European Integration Law of Ukraine "On Grapes, Wine and Viticulture Products" No 3928-IX of August 22, 2024.
The main purpose of the law is to align the norms of industry legislation with the requirements of international rules for the production of viticulture and winemaking products and the implementation of the provisions of the European Union Regulations on viticulture and winemaking, environmental practices, the production of aromatized wine products, the use and protection of geographical indications of wines, aromatized wine products, and control in the field of viticulture and winemaking.
The main provisions of the Law:
- bring terms and definitions, classification of grape varieties and requirements for the production of viticulture and winemaking products, aromatized wine products, as well as some environmental practices and restrictions in compliance with the requirements adopted in the EU countries;
- introduce requirements for the production and circulation of wines, viticulture and winemaking products, flavored wine products with geographical indications, similar to the current rules in the EU countries;
- determine the mechanism of protection of geographical indications on the territory of Ukraine;
- introduce new terms and definitions according to the categories of European legislation;
- create a unified state information system " Vine-growing and wine-making register";
- provide for the possibility of state support for viticulture and winemaking;
- implement the rules regarding labeling and presentation of wine products;
- establish the principles of conducting inspections of the production of wine products from the grape bush to the final product, determine the controlling institutions and their powers, specify the sanctions that are established for violating the requirements established by law.
Adoption of the Law will enable:
- to provide citizens with high-quality products with special properties due to the natural conditions of the territory of origin, produced according to international rules;
- create new jobs in rural areas and favorable conditions for the development of business entities of all forms of ownership;
- improve the state of health of the population by providing citizens with high-quality, safe products produced according to international rules.
The law will enter into force on January 1, 2026.
