The Verkhovna Rada of Ukraine adopted amendments to the State Budget for 2015. Thus, the living wage size and minimum wage would be raised from 01.09.2015.
Minimum wage would be amounted to UAH 1 378, general index of living wage (per one person per month) – UAH 1 330, for able-bodied population - UAH 1378 and for people who are unable to work - UAH 1 074.
The Verkhovna Rada of Ukraine adopted project (№ 2087а) of the Law “On amendments to Certain Laws of Ukraine on public procurements to bring them into compliance with international standards and to take measures to overcome corruption”.
The purpose of the document is noble - to simplify participation in public procurement procedures for business. This could increase the level of competition, overcoming the abuse of appeal procedures in the procurement and also bring public procurement system into compliance with international standards.
The project provides for that the Law would be applied to all customers and procurement of goods, works and services, on condition that the procurement price should be:
- for goods and services - UAH 200 thousand and more;
- for works – UAH 1.5 million and more.
The State Fiscal Service of Ukraine in its letter “On application of the simplified taxation system” of 25.08.15, № 8135/П/99-99-15-03-01-14 notes that a business entity operating in a sphere of telecommunications is entitled to go to the simplified taxation system on condition that he/she does not operates licensed types of activity and cancels appropriate license if available.
It should be reminded that the following is included in the licensed types of activities in telecommunications sector: providing of fixed and movable (mobile) telephone communications, and also services for maintenance and operation of telecommunication networks, radio and television broadcasting networks, wired broadcasting system and networks (Art.7 of the Law of Ukraine “On Telecommunications” of 18.11.03, № 1280-IV).
Therefore, transition to a special tax regime for business entities is closed if the mentioned above activities are implemented and licenses for them are available.
For example, a provider of telecommunications networks can be a single tax payer (provided that he/she does not operate other licensed activities), but the operator cannot be.
Additional note: business entities engaged in providing mail services (except courier activities) and communications (except activities that are not subject to licensing) cannot be single tax payers. In turn, the sphere of telecommunications is a component of communication industry of Ukraine.
The State Fiscal Service of Ukraine by its Letter “On customs duties taxation on Property imported to Ukraine as contribution of foreign investor in authorized capital of foreign-invested enterprise” of 08.09.15, № 19204/6/99-95-42-01-16-01 reminds that import of property as contribution of foreign investor in authorized capital of foreign-invested enterprise is exempt from import duties provided that it is imported for a term not less than three years.
At the same time, VAT under such transaction should be paid on a general basis. The subject to taxation is agreement-based (contract) value of the property but not lower than its customs value (determined in accordance with Section III of the Customs Code of Ukraine) taking into account duties and excise tax that are payable and included in the price of goods.
If company, which received property contribution from foreign investor, disposes of such property earlier than three years from the time of its accounting on the balance - the duty should be paid on general grounds. The penalty for appropriate period also should be transferred.
The tax base of VAT is to be increased on size of duty, which is payable (it was not paid when importing of property and therefore it was not included into the tax base).
In this regard, the taxpayer should additionally charge the tax liabilities for VAT on the corresponding amount.
The State Fiscal Service of Ukraine in its letter “On implementation of requirements of the Law of Ukraine dated 16.07.2015, № 643” of 25.08.15, № 31376/7/99-99-15-01-04-17 mentioned: sanctions and penalties should not be applied to the taxpayer if the funds for payment of agreed amount of tax liabilities there were on an electronic VAT account of the payer, but for some reason they were not transferred to the budget within the legal period.
If during the transitional period (from 01.02.15 to 01.07.15) the following fines were charged, the controlling authority at the place of registration of VAT payer should cancel them within 14 working days.
It should be reminded: Department of the Treasury of Ukraine independently transfers funds to pay the agreed amount of VAT-obligations to the budget (and / or to special accounts) from electronic accounts of taxpayers submitted under SFS registers. This transfer should be conducted not later than the last day of the term established by the TCU for self-payment of tax obligations. Then the Treasury gives information to the SFS on taxpayers and their transferred funds on the day following the day of the transfer and not paid amounts due to the lack of funds on such accounts.
The State Fiscal Service of Ukraine by its letter “On application of fixed assets group for made improvements of leased fixed assets” of 04.08.15, № 16335/6/99-99-19-02-02-15 explained how object of non-current tangible assets, which appeared as a result of improvements of leased fixed assets (hereinafter - FA) and formed from tenant’s costs, should be reflected in updated tax-profitable accounting.
According to tax officials, the cost of improvement of leased FA for the purposes of tax depreciation calculating should be entered as a new object of 9th group “Other fixed assets” as defined in paragraphs 138.3.3 of the TCU. The minimum allowable amortization periods for such FA are 12 years.
It should be reminded that the tenant’s costs for improvement operating lease object (upgrade, modification, finishing, re-adjustment, further construction etc. that lead to increase of future economic benefits, which are initially expected from its use, should be reflected as capital investments in creation (construction) of other non-current tangible assets (para. 8 AS 14 “Rent”).
We assume that state financial control also has similar approach regarding repair and / improvement FA established to 01.01.15, from the costs of repairs / improvements of leased FA.
The State Fiscal Service of Ukraine in its letter “On the application of cash registers” of 10.07.15, № 14505/6/99-99-22-07-03-15 underlined: when conducting cash payments for the lease of real estate and payment of utilities provided by the lease agreement, business entities are required to apply Cash Registers according to the Law of Ukraine “On the application of Cash Registers in trade industry, catering and services” of 06.07.95, № 265/95-ВР.
However, in case of payments via banking institutions - by transferring money to the account of a business entity by tenants - Cash Registers are not to be used.
In addition, fiscals explained: Cash Registers are not used when the payment for trademark registration and payment of registration fee for granting a certificate of trademark.
The Ministry of Economic Development and Trade of Ukraine in its letter “On adoption of electronic money payment by single tax payers of the second group” of 03.06.14, № 3132-04/18028-02 noted: individuals – single tax payers could not make payments for shipped goods (works and services) through electronic payment systems. According to officials, the calculations of electronic money are not cash or cashless payments.
Thus, if the single tax payer would use electronic money in his/her activity, he/she should pay the tax at higher 15% rate because another way of calculations would be used by the taxpayer (paras. 3 of para. 263.4 of the TCU.
