The Cabinet of Ministers of Ukraine by the Resolution“On approving the list of needs, the amount of charitable assistance for the satisfaction of which is not included in the taxable income of the taxpayers on the individual income tax” of 26.11.14 approved the list of needs, the amount of charitable assistance for the satisfaction of which is not the subject to the individual income tax.
In particular, food provision (except alcohol, low alcohol beverages), provision of baby stuff and baby food, restoration of lost property, etc.
At that the amount of this charitable assistance should not exceed in aggregate during the reporting (tax) year of 1 thousand of minimum wages, established by the Law as of January 1 of the reporting (tax) year (UAH 1 million 218 thousand in 2014).
If the charitable assistance would be in excess of the established amount, the excess amount should be taxable at 15% rate (if the excess is ten-fold minimum wages-17%). And the payer will have to file an annual tax return indicating the amount of the charitable assistance.
The State Fiscal Service of Ukraine in its explanation “The basic regulations for the electronic VAT administration” of 04.12.14 with a particular focus on some important issues.
For example, tax invoices, resulting in VAT obligations before 01.01.15, and which should be registered in the Unified register of tax invoices but they haven’t been registered there before 01.01.15 (during the period from 01.01.15 to 15.01.15), are the subject to such registration without complying with the requirements of the existence of appropriate registration amount.
As to the amount of VAT obligations on the tax invoices executed for non-resident’s services in December 2014 (IV quarter of 2014), they are included to the tax credit in January 2015 (in the first quarter of 2015). They do not participate in the calculating of the registration amount.
The negative value of VAT, arose in the taxpayer during the reporting periods to 01.01.15, should not participate in the calculating of the registration amount. Its balance as of 01.01.15 is not canceled but is separately recorded as a part of VAT return for the reporting periods after 01.01.15 and compensated to the payers in automatic or normal modes by the rules and in terms prescribed by the TCU as of 31.12 .14. A separate paragraph and appendix is provided for the maintaining of its records in the project of new VAT return form, the controllers note.
The obligations amounts, declared in VAT returns for reporting (tax) periods from 01.01.15, are repaid from the electronic VAT account of the taxpayer. In turn, the amount of VAT obligations, which the payer identified in the clarify calculation to the VAT returns, and the VAT amounts, additionally assessed to the payer by the controlling authority according to the audit results (including fines and penalties), are paid from its current account instead of electronic account.
The State Fiscal Service of Ukraine under 101.30 notions of a publicly accessible information and reference resource reported that the unpaid VAT amounts by the taxpayers to the budget due to the VAT taxation transactions of the supply of medicines and medical devices at 7% rate were the tax benefits. This is because the rate is lower than the basic-20 percent rate, the fiscals explain.
They reason their position by the norm p.30.9 of the Tax Code of Ukraine, which states that the tax benefit is provided by establishing a reduced rate of tax and duty.
The fiscals give the following formula of the benefit amount:
BA = (V sup. – V pur.) х (the basic tax rate - the reduced tax rate), where:
V sup. – the volume of transactions of the supply of medicines and medical devices within the customs territory of Ukraine, taxable at 7% rate , - from Section 1 “Tax liabilities” of the tax return on value added tax;
V pur. - the volume of transactions of the purchase of goods / services, used in transactions of the supply of medicines and medical devices (including used for the production of such devices), taxable at 7% rate.
The State Fiscal Service of Ukraine clarified the rules of the tax credit formation on its publicly accessible information and reference resource. The statement of the refusal of the supplier to provide the tax invoice (or the failure of its filling or the registration in the Unified Register of tax invoices) is not the basis for the inclusion of the tax amounts into the tax credit from January 1, 2015. This appealing will enable the controllers to conduct the documentary unscheduled inspection of the seller and clarify the accuracy and completeness of his/her charging of the tax liabilities.
The fiscals base on the fact that the adjusted p.201.10 of the Tax Code of Ukraine says nothing about the possibility to include the amounts to the tax credit, those amounts according to which the taxpayer lodged a complaint against the supplier for his/her refusal to issue a tax invoice (or the failure of its filling or the registration in the Unified Register of tax invoices).
The State Fiscal Service of Ukraine “On payment of the consolidated income tax” of 03.12.14, № 13127/7/99-99-19-02-01-17 stated that the payers of consolidated income tax in the mainland Ukraine, who have separate subdivision in the Crimea, pay the tax only at his/her location and placement of “mainland” branches. In this case, the indexes of the Crimean separate subdivisions are not taken into account in the reporting. Because, as it was reported, the latter could not pay the consolidated income tax. In turn, the Crimean companies, which have branches in mainland Ukraine, pay the tax on their own at the place of location. And their separate subdivisions pay at their place of location as the separate taxpayers.
The National Bank of Ukraine by the Resolution “On the settlement of the monetary market situation and exchange situation in Ukraine” of 01.12.14, № 758 freed the charitable assistance coming in foreign currency from the mandatory sale on the interbank market.
In addition, the bankers are allowed to issue the nominal savings certificates denominated in national and other currencies, with a maturity of not less than six months. Moreover the debt repayment under such certificates is carried out by the banks without sums limitation only after the period specified in the certificate. The National Bank kept the old requirement on the compulsory sale of 75% foreign exchange revenues and 90 days maximum term of the settlement of export-import operations. Now it is possible to buy the currency not more than 3 thousand per day by passport. And you can withdraw not more than UAH 150 thousand per day in the desk or from the ATM.
The Federation of Ukrainian Trade Unions on its official website reported that the Board of compulsory State Social Insurance Fund of Ukraine in case of unemployment (hereinafter - the Fund) decided to extend in 2015 the validity of the minimum unemployment benefit at the 80% rate of living minimum wage for able-bodied people. In addition, the Board considers that the labor market situation will be difficult next year and will require the operational measures to ensure the social protection of the population. Therefore, to ensure the financial stability it was decided to apply to the Ministry of Social Policy with a request to draft and introduce the legislation to the Government on increasing the size of the part of social security tax for compulsory State Social Insurance in case of unemployment in 2015.
