The Cabinet of Ministers of Ukraine has approved the draft Law on the State Budget of Ukraine for 2022 and submitted it to the Verkhovna Rada of Ukraine together with the relevant materials. It has already been registered in the Verkhovna Rada under No. 6000.
The bill provides for the establishment in 2022 of the minimum wage:
- per month amount: from January 1 – UAH 6,500, from October 1 – UAH 6,700;
- per hour amount: from January 1 – UAH 39.26, from October 1 – UAH 40.46.
It is proposed to establish in 2022 a living wage per person per month in the amount of UAH 2,393 from January 1, UAH 2,508 from July 1, UAH 2,589 from December 1, and for the main social and demographic groups of the population:
- children under the age of six: from January 1 – UAH 2,100, from July 1 – UAH 2,201, from December 1 – UAH 2,272;
- children aged 6 to 18: from January 1 – UAH 2,618, from July 1 – UAH 2,744, from December 1 – UAH 2,833;
- able-bodied persons: from January 1 – UAH 2,481, from July 1 – UAH 2,600, from December 1 – UAH 2,684;
- persons who lost their ability to work: from January 1 – UAH 1,934, from July 1 – UAH 2,027, from December 1 – UAH 2,093.
The draft State Budget for 2022 is based for the first time on the Budget Declaration for 2022-2024 and provides for the attraction of resources for:
- ensuring a quality level of medicine and education;
- creating an inclusive educational environment and barrier-free space;
- support for veterans;
- strengthening the defense and security of the state;
- infrastructure development;
- digitization.
The Cabinet of Ministers of Ukraine by Resolution No. 954 of September 13, 2021, amended Resolutions No. 1236 of December 9, 2020 and No. 677 June 29, 2021. It enters into force on September 20, 2021. In particular, the following is provided.
Internal COVID certificate
The COVID certificate will have two options (so-called ‘yellow’ or ‘green’) and will contain information about vaccination, a negative test result (valid for 72 hours) or recovery from COVID-19. The so-called ‘yellow’ certificate will have information about the first vaccination, and the ‘green’ – about the full course.
COVID certificates will have color marks exclusively in digital format, there is no need to print them on paper of the appropriate color.
Yellow zone restriction
In the yellow zone the following is forbidden:
- mass events with the participation of more than one person per 4 square meters of building area or territory;
- more than 50% seats occupancy of cinemas and halls of other cultural institutions;
- more than 1 person per 10 square meters occupancy of gyms and fitness centers;
- work of educational institutions, except for those where at least 80% of the staff have a ‘yellow’ or ‘green’ COVID-certificate.
Restrictions will not apply if more than 80% of staff and 100% of visitors to facilities or events, except for persons under 18 years of age, have ‘yellow’ or ‘green’ COVID certificates.
‘Red’ zone restriction
In the ‘red’ zone the following is forbidden:
- work of catering establishments, except for targeted delivery and takeaway orders;
- work of shopping malls and other entertainment establishments, cinemas, theaters, etc.;
- work of non-food markets and shops,
- work of gyms, swimming pools and fitness centers;
- work of educational institutions, except for institutions where 100% of employees have a green COVID-certificate;
- holding mass events, except for official sports events and matches of team sports without spectators;
- work of cultural institutions, except for historical and cultural reserves, filming and video shooting;
- work of accommodation facilities (hostels, hotels, etc.).
Restrictions will not apply if all staff and all visitors to establishments or events, except those under the age of 18, have green COVID certificates.
Border crossing
If a person crossing the border of Ukraine has a ‘yellow’ or ‘green’ certificate of vaccination or recovery from COVID-19, they may not undergo self-isolation. The same applies to persons coming from the temporarily occupied territories.
The Ministry of Finance of Ukraine by Order No. 427 of July 26, 2021 approved amendments to some regulations on the use of payment transactions recorders (hereinafter – PTR) and/or software payment transactions recorders (hereinafter – SPTR). The innovations were needed in view of last year’s adjustment of the Tax Code and the Law on PTR.
Thus, clarifications were made to the Procedure for registration and application of PTR used for registration of settlement transactions for goods (services). For example, it was determined that the acts on the issuance of funds and acts on the cancellation of erroneously made through the PTR amount of payment, erroneous form of payment are stored for three years. In this case, the business entity is obliged to provide these acts to the supervisory authorities during the inspection.
To the Procedure for registration, maintenance of the register and use of software payment transactions recorders, a requirement was added, according to which the local registration number, which is assigned to such SPTR by the business entity, must be indicated in the relevant application for registration. The local number of SPTR is a numeric number, it is unique among the numbers assigned by the business entity in any order of SPTR for its registration and use in the relevant business unit. The local SPTR number is kept until the date of cancellation of the SPTR registration.
In the future, SPTR can be installed and used only on the device belonging to the business entity which registered SPTR, on the right of ownership, possession, use. Settlement transactions through such SPTR can be carried out only by those persons whose certificates of electronic signatures and/or seals are entered in the Register for such SPTR.
Order No. 427 also regulates the issue of depositing or issuing cash from the place of settlement with registration through the PTR/SPTR.
The State Tax Service of Ukraine has published on its website a draft order of the Ministry of Finance “On approval of forms and the Procedure for filling out and submitting simplified tax reporting on value added tax.”
The document was developed in accordance with the requirements of the Tax Code, taking into account the amendments made by Law of Ukraine No. 1525-IX of June 3, 2021 “On Amendments to the Tax Code of Ukraine to abolish taxation of income received by nonresidents in the form of payment for production and/or distribution of advertising, and improving the procedure for value added tax on transactions for the supply of electronic services to non-residents by individuals” (hereinafter – Law No. 1525-IX).
Thus, item 208.4 of the Tax Code provides that the base reporting (tax) period for a non-resident registered as a VAT payer in accordance with item 208.2 of this article is a quarter.
Pursuant to item 208.8 of the Tax Code, a non-resident person registered as a VAT payer in accordance with item 208.2 of the Tax Code submits simplified tax reporting quarterly (within 40 calendar days following the last calendar day of the reporting (tax) period, regardless of whether it was carried out by a nonresident during the reporting (tax) period of supply of electronic services to individuals, the place of supply of which is located in the customs territory of Ukraine) in electronic form through a special portal solution for non-resident users who provide electronic services, defined in paragraph 14.1.56 of the Tax Code, the place of supply of which is located in the customs territory of Ukraine by electronic identification.
However, paragraph 208.8.2 of the Tax Code stipulates that the simplified tax return and the clarifying calculation of VAT tax liabilities in connection with the correction of self-identified errors to the simplified VAT tax return are filled in the state or English language.
All indicators in the simplified tax reporting are put in foreign currency (EUR or USD).
The VAT payer independently calculates the amount of tax liability, which is indicated in the simplified tax reporting.
The regulatory act also stipulates that the declaration and the clarifying calculation to the declaration are filled in the state or English language.
All indicators in tax reporting are stated in foreign currency (EUR or USD).
The VAT payer independently calculates the amount of tax liability, which is indicated in the tax returns.
The Cabinet of Ministers of Ukraine supported the bill aimed at reforming the employment service, modernizing insurance approaches in the event of unemployment and implementing new active programs in the labor market. The document was developed by the Ministry of Economy of Ukraine.
Thus, the bill proposes:
- replace the inefficient mechanism of employment quotas with compensation for employers of part of labor costs or SSC for employment of certain categories of unemployed, in particular young people. This approach will allow young people to gain work experience faster and increase their competitiveness in the labor market;
- promote the employment of the long-term unemployed by compensating employers for the costs of SSC;
- introduce financial assistance for businesses.
The document also provides for improving approaches to the conditions, duration and amount of unemployment benefits: strengthen insurance principles (the longer the insurance period – the bigger the amount of unemployment benefits) and reduce sanctions against the unemployed for dismissal from the last job at will without good reason.
Such changes make it possible to balance the budget of the Fund of Obligatory State Social Insurance of Ukraine in case of unemployment and ensure the continuity of insurance payments.
In addition, it is proposed to change the principles of job selection for the unemployed. In particular, they will additionally take into account transport accessibility, experience and skills of a person, as well as the amount of salary depending on the duration of unemployment.
