The Cabinet of Ministers of Ukraine by its Resolution “On amendments to paragraph 5 of the Model Statute of Limited Liability Company” of 07.10.15, № 820 brought the Model Statute of Limited Liability Company in line with current legislation.
In particular, the document states that the LLC may have a seal with its name, identification code or stamps.
It should be recalled that from 06.11.14 the seals for legal entities are not required.
The State Fiscal Service of Ukraine in its letter “On taxation of income in the form of non-pecuniary damage and incomes paid by decision of a court for the forced absence” of 01.10.15, № 9186/Х/99-99-17-02-01-14 explained: the subjects to the income tax to be incomes in the form of compensation for pecuniary or non-pecuniary (moral) damages, except amounts that directed by the court decision for indemnity for losses caused to the taxpayer as a result of causing him/her property damage and life and health injury. The tax rate in 2015 is 15% to the income within UAH 12 180 and 20% - to the excess amount over UAH 12 180.
Also it is noted in the letter that 1.5% of the war tax should be paid from the amounts that are included in taxable income.
The State Fiscal Service of Ukraine by its letter “On debts receivable” of 16.09.15, № 21853/10/28-10-06-11 explained that utility companies, which use the cash method of accounting for VAT according to para. 187.10 of the Tax Code of Ukraine could debit the debts receivable for goods / services listed in this paragraph without VAT charging.
According to the controllers, the debt could be credited if limitation of action period expired and the company took the necessary steps for its recovery. But tax liabilities do not arise because:
1) there is no receipt of funds to the bank account (to the cash desk) of the utility provider in payment of delivered goods / services;
2) VAT payer does not receive any other compensation for delivered goods / services.
The State Fiscal Service of Ukraine in its letter “On amendments to the SFS letter dated 26.08.2015 № 31730/7/99-99-19-03-02-17” of 09.10.15, № 37545/7/99-99-19-03-02-17 revised their guidelines for filling the application D4 to the VAT declaration if a VAT payer wanted to return the cash overage from electronic account.
So, all the columns should be filled in the application D4 including columns 4 and 5 of the second table regardless of the funds direction, to the budget or to current account.
Thus, the amount of funds on the electronic account, which can be transferred to the budget and determined as the difference between columns 1 and 2 (column1- column 2) should be indicated.
In column 5 of the table should be indicated the amount of funds on the payer’s electronic account that can be transferred to the taxpayer’s current account and determined as difference between columns 1,2 and 3 (col. 1- col. 2 – col. 3).
The VAT payer should indicate the direction of funds transfer and appropriate amount in the text below the table.
It should be reminded that earlier tax authorities recommended not filling in the column 5 in case of directing of cash overage on electronic account to the budget (the SFSU letter of 26.08.15, № 31730/7/99-99-19-03-02-17). Now they withdrew this advice.
The State Fiscal Service of Ukraine in its letter “On the right of a person, registered as VAT payer less than 12 calendar months, on the cancellation of the registration” of 17.08.15, № 17440/6/99-99-19-03-02-15 noted: the TCU didn’t provide possibilities of applying for cancellation of registration of a person registered as VAT payer less than 12 calendar months.
They mentioned as an argument the norm of subpara. “a” of para. 184.1 of TCU, which said that the cancellation of registration of VAT payers to be when any person registered as a taxpayer during the previous 12 months applied for cancellation of registration, if the total value of taxable goods / services provided by such person over the past 12 months was less than UAH 1 million (excluding VAT) upon payment of all tax liabilities.
The State Fiscal Service of Ukraine in its letter “On taxation of wages of nonresident who works in the representation of a foreign company located in the territory of Ukraine” of 16.09.15, № 19780/6/99-99-17-03-03-15 informed: if the permanent representation of a legal entity-nonresident in Ukraine counted (pays) wages in favor of individual – nonresident, in other words taxable income with source of origin in Ukraine, it was a tax agent (employer) of such nonresident in understanding of the TCU.
Therefore, a permanent representation is obliged, when charging (payment, providing) of such an income to the nonresident, to withhold and transfer 15% (20%) of income tax and 1.5% of war tax to the budget of Ukraine.
But the Unified Social Contribution shouldn’t be charged or withheld in this case. Because according to para. 10 of Sec. 1 of Art.1 of the Law on the Unified Contribution, an employer - representation of the foreign company, located in Ukraine, is not an insured concerning a foreigner (a citizen of another country).
The Ministry of Finance of Ukraine in its letter “On the procedure of reflection in the accounting of charging, receipt and payment of compensation from the budget within the average wage of employees called up for military service during mobilization” 24.09.15, № 31-11410-08-10/29963 explained that charging, receipt and payment of compensation from the budget of amounts of average wage of mobilized employees should be reflected in the accounting as follows:
- charging of compensation of amounts of average wage reserved to mobilized employee: DT 94 “Other operating expenses” DT 66 “Calculations under payments to the employees”;
- arrival of funds to the account of the company from the social protection authorities to pay compensation: DT 31 “Accounts in banks” Сr 48 “Target financing and target receipts”. The revenue is simultaneously recognised on this amount: DT 48 Cr 71 “Other operating income”;
- compensation payment to mobilized employees: DT 66 Cr 30 “Cash” or Cr 31.
The Ministry of Finance of Ukraine in its letter “On reflection in the accounting of expenses associated with the payment of real property tax, other than land” of 18.08.15, № 31-11410-08-16/26592 reported: expenses associated with the payment of real property tax, other than land should be reflected in the accounting on appropriate accounts of expenses (according to the Regulations on the application of the Plan of Accounts for accounting of assets, capital, liabilities and business transactions of companies and organizations, approved by the Ministry of Finance of Ukraine of 30.11.99, № 291).
Although para.18 of Accounting Regulations 16 “Expenses” approved by the Ministry of Finance of Ukraine of 31.12.99, № 318 said that taxes, duties and other mandatory payments provided by the law should be reflected within administrative expenses. But this does not apply to taxes, duties and mandatory payments included in the production cost of products, works and services.
