The Cabinet of Ministers of Ukraine by its Resolution “On Approval of Licensing Conditions for the conduction of business activity on providing of financial services (excluding professional activities in the securities market)” of 07.12.16, № 913 approved Licensing Conditions for the conduction of business activity on providing of financial services (excluding professional activities in the securities market).
This document established the procedure for obtaining a license and also requirements for conduction of business activity of financial institutions such as guarantees and warranties of trust management of financial assets, leasing, factoring, insurance, attraction of financial assets with an obligation to return, money provision to loan, administration of private pension funds, purchase of goods in groups, property management to finance the construction and/or transactions with real estate etc.
Licensees that have licenses of NKRRFP (the Financial Services Authority) for conduction of mentioned economic activity should bring it in compliance with the License Conditions within two months from the date of publication of the resolution of the Government.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure of competition for lease rights of the state property” of 07.12.16, № 923 amended the Procedure for providing of competition for lease rights of the state property, approved by the Cabinet of Ministers of Ukraine dated 31.08.11, № 906. Now, the announcement about the start of the competition for lease rights of the immovable property will be published at least 10 days (previously 20 days) before the start of the competition. After its completion, a draft of lease contract is to be sent to the winner within three working days (previously − 15 calendar days).
It is possible to learn more about the lease of integral property complexes of companies, organizations and their structural divisions from the publication 40 days prior to the competition. This increase in term (previously 20 days) will give enough time for receiving a decision on concentration from the authorities of the Antimonopoly Committee of Ukraine.
According to government officials, as a result, the transfer time of state property on the basis of competition should be reduced by 20 days.
The State Fiscal Service of Ukraine in its letter “On the procedure for declaration of the excise tax due to the entry into force by the order of the Ministry of Finance of Ukraine dated 26.09.2016 № 841” of 09.12.16, № 39423/7/99-99-15-03-03-17 explained the main innovations regarding the form and filling in procedure of declaration of the excise tax. In particular, the following Annexes were added to the excise declaration:
- “Calculation of the amount of the excise tax for the sale of fuel under subparagraph 213.1.12 of paragraph 213.1 of Article 213 of the Code” (Annex 11);
- “Application on the violation by a person that sells the fuel, procedure of filling in and/or the registration procedure of excise invoice/adjustments calculation” (Annex 9, due to which Annex 9 of the previous version became Annex 10 of a new form).
Annex 11 is necessary to be filled in by all taxpayers (legal entities and individuals) of the excise tax for the sale of fuel (including producers), regardless of whether it was the object of taxation in the reporting period.
The amount of tax liability determined in Annex 11 (gr. 20) should be transferred to line B2, which supplemented chapter B “Tax liabilities for the sale of fuel” of the Declaration.
Annex 9 should be filled in by the person that receives the fuel and submits it along with the Declaration and copies of documents required by paragraph 231.10 of the Tax Code of Ukraine (hereinafter − TCU), to the controlling authority at the place of registration of the taxpayer within the deadline established for the submission of the tax declaration.
It is required to provide a report in a new form for the first time for December 2016 not later than on January 20, 2017.
The State Fiscal Service of Ukraine in its letter “On the reflection in the VAT tax returns of VAT amounts, which were paid by the subject to special tax regime to the suppliers when purchasing goods/services, which were involved in the production of exported agricultural products” of 07.12.16, № 26466/6/99-95-42-01-15 reminded taxpayers of value added tax (hereinafter − VAT) − subject to special tax regime about regulations on reflection of tax credit generated when purchasing goods/services, which were involved in the production of exported agricultural products. Such amounts at the taxpayer solution can be transferred from the special regime Declaration (0121) to general (0110) by reflecting in line 14 of the Declaration 0121 with the sign “-“and in line 14 of the Declaration 0110 with the sign “+“.
The negative VAT, which occurs in subject to special tax regime during exports of agricultural products, can participate in the calculation of VAT refund.
However, the amount of tax credit should be necessary transferred from the special regime Declaration (0121−0123) to the general Declaration (0110) in the period the export transaction. Otherwise, the negative VAT on export can be considered enrolled in the tax credit of the next reporting period, and it will not be the subject to transfer in future periods.
The State Fiscal Service of Ukraine in its letter “On accrual of the unified contribution for obligatory state social insurance on the amount paid to a foreign citizen who does not live in Ukraine, fees for consulting services under the civil law contract” of 01.12.16, № 26021/6/99-99-13-02-03-15 concluded: if the company pays a fee under a civil law contract (on consultancy services) to foreign citizen who does not live in Ukraine, the amount of compensation is not the basis for accrual of the unified contribution. It is explained by the fact that the foreigner is not an insured person according to the current legislation of Ukraine, and the mentioned company is not his/her employer-insured.
The State Fiscal Service of Ukraine by its letter “On the reflection in the tax return of the company income tax, which form was approved by the Ministry of Finance of 20.10.2015, № 897, the amount of advance payments due to the payment of the dividends paid in the current year, including reduction in the amount of accrued income tax in the current reporting (tax) period” of 07.12.16, № 26467/6/99-95-42-01-15 reported: the amount of accrued and paid dividend advance payment on income tax n the first quarter of 2016, which is not counted in the reduction of income tax for the reporting period, could be considered as decrease in tax liability from the tax declared in subsequent reporting periods of 2016.
Thus, the tax authorities confirmed the right of those who have profits on the annual enrollment of dividend advances and also transfer of amounts of uncounted dividend advances in the reduction of income tax accrued in subsequent reporting periods within the year.
The State Fiscal Service of Ukraine by its letter “On adjusting the financial result before tax on the provision formed for payments related to salaries” of 30.11.16, № 25818/6/99-99-15-02-02-15 reported that payments related to salaries, included the costs of the company under the programs of pension provision (including short-terms payments to the employees, post-employment benefits, other long-term benefits of employees, payments in case of dismissal, etc.).
If the provision (reserve) is created for the compensation for future expenses under other payments related to salaries (including under mentioned above), the costs for the formation of such a provision does not increase the financial results for the purposes of taxation on the income tax.
The State Fiscal Service of Ukraine in its letter “On the tax implications of the VAT when the recognition of the amount of losses from decrease in usefulness of assets” of 02.12.16, № 26145/6/99-99-15-03-02-15 informed about the tax implications of VAT when the recognition of the amount of losses from decrease in usefulness of assets. The tax officers explain that the decrease in the balance value of assets does not fall under the definition of transactions for delivery of goods/services, so such a transaction is not subject to VAT.
It should be reminded that when it is about the assets (fixed assets), it is not considered as the supply their liquidation in connection with the destruction or the destruction as a result of force majeure, and in other cases where such liquidation is carried out without the consent of the taxpayer, including in case of theft of fixed assets, or when the taxpayer provides to the controlling authorities the document on the destruction, taking parts or transformation of fixed assets in a different way, as a result, the noncurrent asset can not be used for the original purpose (sub-para. 14.1.191 of TCU).
The Ministry of Social Policy of Ukraine in its letter “On the payment of the days of business trip for employees who are not civil servants” of 11.11.16, № 1564/13/84-16 reminds that the days of business trip should be paid at the one of the values that is greater:
- or at the average wages (calculated for two months preceding the month of business trip direction);
- or at the size of the usual daily wage.
If the business trip is accounted for two different months, the amount of daily payment (compared with average daily wage) should be determined separately for each of the months. As a result, it is possible that a part of the same business trip will be paid at the average wages, while another part (that is accounted for another month) – at the usual daily wages.
The Ministry of Social Policy of Ukraine in its letter “On additional leave for civil service length for the period of military service” of 16.11.16, № 691/13/116-16 mentioned: the mobilization period should be included in the civil service length three-fold amount (one month for three). However, the employee has no the right to additional leave for the years of service. For example, in July 2015 the civil service length of employee during the stay on military service reached 19 years, but the days of additional leave will not be charged. Only after the mobilization in 2016 and when the employee starts his/her work, he/she can take additional leave for the length of service of 20 years.
The National Bank of Ukraine by its Resolution “On the regulation of situation in the monetary and foreign exchange markets of Ukraine” of 13.12.16, № 410 extended existing temporary restrictions in the monetary and foreign exchange markets due to the presence of risks for price and financial stability. Majority of restrictions became permanent.
In particular, such restrictions continue to have effect as mandatory sale of foreign exchange earnings in favor of legal persons at level of 65%; 120-day term of settlements for transactions for export and import of goods; one-day period of reservation the national currency to purchase foreign currency in the interbank market; a ban on advanced repayment of loans from non-residents; purchase of currency by individuals amounting to 2 thousand hryvnia per day; limit on cash withdrawals from foreign currency accounts amounting to 250 thousand hryvnia per day etc.
Now, currency restrictions are permanent. An exception is the mandatory sale of foreign exchange earnings and a 120-day term for settlements of transactions for exports and imports of goods − their effect is limited to June 15, 2017 inclusive.
