The State Fiscal Service of Ukraine in its Individual Tax Advice “On Taxation of Amounts by the Tax Agent of Reimbursed Expenses Incurred by an Individual (employee) During a Business Trip” of 01.09.17, No. 1785/6/99-99-13-02-03-15/ІПК notes that reimbursement of travel expenses in a two-bed compartment of first class carriage (SV vagon) is not the subject to the income tax and the war tax, provided for provision of a travel document by a seconded employee, which is executed for a separate compartment.
It should be noted that the passenger is entitled to occupy, as a rule, one seat in accordance with the purchased travel document. However, in the presence of vacant seats, he/she can be provided the opportunity to buy a double compartment in first class carriage (SV vagon). A travel in a separate compartment is executed by one travel document (para. 2.26 of the Rules of carriage of passengers, luggage, load-carrying and mail by rail transport of Ukraine, approved by the order of the Ministry of Transport and Communications of Ukraine dated December 27, 2006 No. 1196).
It should be reminded that the amount of travel expenses, reimbursed to the individual, who is in labor relations with his/her employer or is a member of the governing bodies of enterprises, institutions, organizations, in accordance with the procedure established by law, travel expenses within the limits of actual expenses, in particular for travel (incl. Carriage of luggage, reservation of transport tickets) to the place of business trip, back, at the place of business trip (including leased transport) (paragraphs 170.9.1 of the Tax Code of Ukraine).
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Determining the Calculation of Settlement of Cash Transactions for the Implementation of the Reimbursable Financial Assistance Agreement” of 05.09.17, No. 1803/С/99-99-14-05-01-14/ІПК clarified that the issuance of reimbursable financial assistance in cash through the cash office of the enterprise should be attributed to cash payments.
This means that there will be restrictions on cash payments. Consequently, the company can provide the financial assistance through cash to:
- individual − in the amount not more than UAH 50 thousand per one day;
- legal entity or entrepreneur − in the amount not more than UAH 10 thousand per one day.
According to the representatives of the fiscal department, the return of the financial assistance provided to an individual does not fall under the provisions of the Regulations on cash transactions. But the cash limit works in both directions. That is, when receiving a back financial aid provided, the company must also comply with the maximum allowable cash payments.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the Procedure for Correcting the Error in the Individual Tax Number of the Buyer” of 05.09.17, No. 1824/6/99-99-15-03-02-15/ІПК reminded the procedure for correcting the error in the tax invoice, admitted in the individual tax number of the buyer:
- a “minus” adjustment calculation should be made by the date of the error detection;
- issue a tax invoice with the correct ITN date of tax obligations.
Also, the tax authorities emphasize: Article 1201 of the Tax Code of Ukraine does not provide for exemptions for the application of penalties in case of late registration of a tax invoice related to the correction of errors in the buyer’s ITN. That is, if from the date of the occurrence of tax obligations until the date of registration in the URTI of the tax invoice with the correct ITN deadline expired − a fine should be imposed on the seller.
It should be recalled that tax invoices, compiled from the 1st to the 15th of the month inclusive, should be registered no later than the last day of the month. And documents issued from the 16th to the last day of the month, can be included in the URTI by the 15th of the next month inclusive (para. 201.10 of TCU).
The State Fiscal Service of Ukraine in its individual tax Advice “On the classification of indebtedness as a category of “bad debt” of 01.09.17, No. 1783/6/99-99-15-02-02-15/ІПК explained which corrective differences would arise in case of write-off commodity receivables, for which the limitation period expired, if the measures concerning its collection were not carried out or did not give results.
Consequently, if there were no attempts to return commodity receivables, then after expiry of the limitation period, it should be classified as irrevocable financial assistance. As a result, the correctional difference from paragraph 140.5.10 of the Tax Code of Ukraine is activated. That is, if the debtor was a “zero tax payer”, then the result will have to be increased by the amount that has been transformed into reimbursable financial assistance of overdue receivables.
Representatives of the fiscal department expressed an interesting position regarding the taxation of overdue commodity receivables whose enforcement measures were carried out but were unsuccessful. Under these conditions, the payer must reduce the financial result to the amount of such a bad debt (para.139.2.2 of TCU). It turns out that before it is necessary to increase the financial result on the amount of such costs according to para. 139.2.1 of TCU.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the receipt of reimbursable financial assistance by an individual – unified tax payer” of 29.08.17, No. 1757/6/99-99-13-01-02-16/IПК clarified that reimbursable assistance given to an individual – unified tax payer should be taxed at a rate of 18% of the income tax and 1.5% of the war tax. In accordance with paragraph 177.6 of the Tax Code of Ukraine, income received by an entrepreneur outside his/her business activity should be taxed in accordance with the general rules established for individuals.
The National Securities and Stock Market Commission (hereinafter − NSSMC) by its Resolution “On Amendments to Certain Regulatory Acts of the National Commission on Securities and Stock Market (regarding the improvement of the procedure for registration of issue of shares)” of 14.07.17, No. 529 approved changes to the by-laws that regulate the procedure for registration of the issue of shares.
The main innovation is the abolition of the imprint of the seal as a mandatory requisite for all documents submitted for registration of the issue of shares. In addition, to certify copies of such documents, now only the signature of the authorized person is sufficient.
It should be recalled that since 19.07.17 the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on the Use of Seals by Legal Entities and Individual Entrepreneurs” came into force from 23.03.17, No. 1982-VIII, which abolished the requirements for mandatory use of seals and the need for their use in business relations with state bodies and local government bodies.
The National Bank of Ukraine by its Resolution “On Amending Certain Legal Acts of the National Bank of Ukraine” of 07.09.17, No. 88 amended the regulations governing the granting of loans by international financial organizations (hereinafter − IFO). The changes are aimed at simplifying the procedure for obtaining such loans. In particular:
- loan agreements in foreign currency with IFO are exempted from registration in the National Bank;
- possibility of attracting loans from IFO under contracts with special terms (the currency of the loan is defined in hryvnias, and transactions are in the currency).
The Ministry of Social Policy of Ukraine issued an order “On Approval of the Procedure for Compensation to Citizens Affected by the Chernobyl Disaster, costs for treatment in health care facilities in the territory of Ukraine, the purchase of drugs not in such institutions, medical products, prosthetics, except dental prosthesis with precious metals and metal ceramics” of 26.07.17, No. 1211 approved the Procedure for reimbursement to citizens who suffered as a result of the Chernobyl disaster, the cost of treatment in health facilities on the territory of Ukraine, the purchase of drugs not in such institutions, medical products, prosthesis, except dental prosthesis precious metals and metal ceramics. This Procedure, in particular, expanded the list of documents (from 3 to 8) necessary for the reimbursement of expenses for treatment, as compared with its predecessor − Procedure for compensation to citizens who suffered as a result of the Chernobyl disaster, expenses for treatment in health care facilities in the territory of Ukraine, purchase of drugs not in such institutions, medical products, prosthetics, except dental prosthesis with precious metals and metal ceramics, approved by order of the Ministry of Social Policy of Ukraine dated May 29, No. 319.
Affected citizens are also entitled to file applications for reimbursement of treatment costs during the year after the end of hospital treatment.
