The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated February 8, 2017 No. 77” of 07.02.18, No. 50 prolonged the operation of the Procedure for using funds provided for in the state budget for financial support of agricultural producers. In particular, the reference to 2017 is excluded from the said Order.
The decision was made in compliance with the provisions of the Budget Code of Ukraine and the Law of Ukraine “On the State Budget of Ukraine for 2018”. This will allow you to direct budget funds in 2018 to:
- a budget subsidy for the development of agricultural producers and stimulation of agricultural production.
- partial compensation of the cost of agricultural machinery and equipment of domestic production.
The Government also assumes that the allocation of funds for these areas will be approved by the Ministry of Agrarian Policy.
The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the Procedure for Using the Funds Provided in the State Budget for Implementation of Measures to Ensure Domestic Production of Coal Products and Further Reforms of the Public Sector of the Coal Industry” of 07.02.18, No. 63 approved the procedure for using the funds provided in the state budget under the program “Implementation of measures to ensure domestic production of coal products and further reform of the state sector of the coal industry”. Funds will be provided to coal-mining enterprises of state ownership or coal mining companies, 100% of which are owned by the state (except for bankrupt enterprises).
Use of funds is necessary for the payment of wages and the modernization of technical equipment.
In order to receive irretrievable financing, coal-mining enterprises should submit to the Ministry of Energy and Coal a forecast of technical and economic indicators of activities and a plan of measures aimed at improving production performance and reducing the cost of commodity coal products. The Ministry of Energy and Coal will consider and distribute them in accordance with the approved procedure.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the possibility of a payer of the unified tax to be the manager of real estate” of 31.01.18, No. 374/6/99-99-12-02-03-15/ІПК reported that a legal person - a payer of the unified tax of the 3rd group has the right to be the property manager in accordance with the property management contract. But only on condition that the requirements of the Tax Code of Ukraine (hereinafter − TCU) are complied with (in the part of taking the contract for accountancy, registration of the manager by the value added tax payer (hereinafter − VAT) and application of the rate of the unified tax in the amount of 3%). In addition, he/she may simply provide property management services under a relevant contract.
All profits should be taxed by the unified tax and, if any, the payment for management of the property received by the beneficiary as a result of operations with this property. In the case of entering into an agreement under which the “estate manager” provides property management services and receives remuneration for it, the income of the payer of the single tax includes the received fee for property management services.
The State Fiscal Service of Ukraine in its letter “On the peculiarities of the VAT taxation of medical devices” of 05.02.18, No. 3375/7/99-99-15-03-02-17 reported that medicines and medical devices purchased /imported before 01.01.18 with a 20% VAT, a tax at a rate of 7% in 2018 can be accrued.
At the same time, it is not necessary to adjust the tax credit.
In addition, representatives of the fiscal department described the peculiarities of the application of the 7% VAT rate during the delivery of medicines and medical devices. It should be reminded that earlier the list of medical devices was approved by the Cabinet of Ministers, however from 01.01.18 the TCU provides for other conditions for application of the 7-percent rate.
Supply and import of medical devices are subject to a 7% VAT, if they:
· are allowed to be placed in the market and/or put into operation and use in Ukraine;
· are entered into the State register of medical equipment and medical products or meet the requirements of the relevant technical regulations, which are confirmed by the compliance document.
If at least one of the above conditions is not fulfilled, the supply of medicines and medical devices is taxed at a rate of 20% VAT.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Taxation of Roaming Services” of 30.01.18, No. 354/6/99-99-13-02-03-15/ІПК clarified: if the employer pays for the roaming service, which provided by the operator of mobile communication to the employee, then the value of the said service includes the total taxable income of the employee as an additional benefit and tax personal income tax and military fees on a general basis. Representatives of the fiscal department refer to para. “г” of para. 164.2.17 and para. “е” of para. 164.2.17 of TCU, according to which, it is included to the additional benefit, the amounts of monetary compensation of the taxpayer’s expenses and the value of services received free of charge.
It should be noted: that the consultation does not determine the purpose for which the employee uses roaming - personal or industrial, but fix that the roaming service is provided directly to the employee (and not the employer).
In the category 103.02 “ZIR” on the question about the taxation of income from the cost of telephone conversations of employees in roaming paid by the employer, the tax respondents replied: “if the mobile phone, which is recorded on the balance of the legal entity (employer), the employee is engaged in industrial conversations, then the cost of these conversations is not considered as an additional benefit of the employee”.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the availability of the commercial invoice and the formation of expenses by the taxpayer for the profit in the absence of the commercial invoice” of 05.02.18, No. 464/6/99-99-15-02-02-15/ІПК reported: if the terms of delivery of the goods provide for payment of transport costs by the buyer-resident of Ukraine, such costs should be included in the customs value of the goods.
After import of such goods into the customs territory of Ukraine, transport costs are excluded from the cost of goods provided that these costs are:
· included in the price of goods;
· documented (there is an invoice, an act of work performed (services rendered), bank and payment documents (or costing transportation costs);
· calculated.
At the same time, in the case of customs clearance of goods, documents for confirmation of transportation costs should be based on the data of accounting both the recipient and the carrier of goods.
The State Fiscal Service of Ukraine in its Individual Tax Advice reported: if the unified tax payer applying a cash register ceases to operate, then in case of repeated registration by the unified tax payer, he/she is obliged to apply a cash register in all subsequent tax periods during his/her registration, regardless of the amount of income.
It should be recalled that according to para. 296.10 of TCU, the unified tax payers begin to apply the cash register from the first day of the first month of the quarter following the quarter in which the volume of its income exceeded UAH 1 million. And they continue in all subsequent tax periods during the registration of a business entity as the unified tax payer.
After re-registration, a new entity appears, which, before reaching the income limit of UAH 1 million, is not obliged to apply a cash register (except for sellers of complex household goods).
The State Fiscal Service of Ukraine in its Individual Tax Advice “On taxation of income received by an individual in the form of a gift from a legal entity” of 02.02.18, No. 439/6/99-99-13-02-03-15/ІПК clarified: if the value of gifts exceeds 25% of one minimum wage, their entire value is taxed by the personal income tax (hereinafter − PIT) as an additional benefit, taking into account the provisions of para. 164.5 of the TCU.
It should be recalled: para. 165.1.39 TCU establishes a list of incomes that are not included in the calculation of the total taxable income of the taxpayer, including the value of gifts (as well as prizes to winners and prize-winners of sports competitions), if it does not exceed 25% of one minimum salary established on January 1 of the reporting year (in 2018 − UAH 930.75), with the exception of cash payments in any amount.
Previously, the SFSU explained that in the case when the value of the gift exceeds the specified amount, the amount of excess should be taxed (the SFSU letter dated 24.02.17, No. 2985/5/99-99-13-02-03-16). Regarding the maintenance of the war tax, the representatives stated: “if the value of the gift, <...> does not exceed 25% of one minimum wage (per month), established on January 1 of the reporting tax year (in 2018 − UAH 930.75), <...>, it is not the subject to taxation by the war tax. In case if the value of the gift exceeds the specified amount, the amount of such excess should be taxed by the war tax as an additional benefit” (category 132.05 “ZIR”).
It is unknown why the SFSU suddenly changed the approach to the interpretation of para. 165.1.39 of TCU, but for enterprises that acted in accordance with previous explanations, it can result in additional accrual of the income tax and the war tax.
The Ministry of Social Policy of Ukraine in its letter “On the definition of the day of dismissal under a fixed-term employment contract” of 05.01.18, No. 9/0/22-18/134 clarified the procedure for termination of the fixed-term employment contract in case if its last day falls on the weekend.
According to representatives of the department, the employer must fulfil the duty established by Art. 47 of the Code of Labor Laws of Ukraine (hereinafter − the Labor Code) (to calculate with the employee in due time and issue a work book to him/her on the day of dismissal) on the last working day. At the same time, the day of dismiss in accordance with part two of Art. 2411 of the Labor Code will be the last day, determined by a fixed-term employment contract.
The State Service of Ukraine on Labor Issues in its letter “On the conditions for the provision of childcare leave for the child aged under six” of 11.12.17, No. 5605/4/4.7-ЗВ-17 clarified the conditions under which for childcare leave for the child aged under six, and what documents should be submitted for such a leave.
It should be recalled that this leave is provided on the basis of para. 3 of sec. 1 of Art. 25 of the Law of Ukraine “On Holidays” of 15.11.96, No. 504/96-ВР in case if the child needs home care, the duration specified in the medical report, but not more than until the child reaches the age of six, and if the child a patient with type 1 diabetes (insulin dependent) − not more than until the child reaches the age of 16 years, and when the child gets the category “disabled child of subgroup A” − the child aged under 18 years.
The leave is provided without salary wage.
The State Service on Labor Issues notes that in order to receive childcare leave for the child aged under six, the following documents should be submitted:
- a statement addressed to the employer or an authorized person;
- certificate in the form No. 080-1/о;
- birth certificate of the child.
The certificate in form No. 080-1/o is issued for a term of six months − in view of the nature and course of the child’s illness. Accordingly, after the expiration of the period for which the certificate was issued, a person who wishes to remain on leave for childcare must receive a new certificate for a new term.
The said certificate may be issued by children’s polyclinics, centres of primary health care, children’s homes, and health facilities, which provide outpatient and polyclinic care, which includes children’s departments where the child is accounted, the State Labor Office emphasizes.
