The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the Procedure for Using the Funds Provided in the State Budget for the Financial Support of Non-Governmental Organizations of Disabled Persons” of 14.03.18, No. 183 approve the Procedure for using funds provided in the state budget for financial support of non-governmental organizations of the disabled people.
In order to receive financial support from the state, non-governmental organizations must submit to the Fund for Social Protection of the Disabled until May 30, the year preceding the year of the use of funds, a statement in the form approved by the Ministry of Social Policy.
The following should be also submitted along with the application:
- a copy of the statute (regulation) of a non-governmental organization, if funds are received for the first time or if changes were made to the statute (regulation);
- a questionnaire of a non-governmental organization in the form approved by the Ministry of Social Policy;
- information on the activities of a non-governmental organization;
- a copy of the minutes of the meeting of the statutory body of a non-governmental organization on the election of the leadership;
- a copy of the report on the activities of a non-governmental organization;
- a copy of the report on the use of income (profits) of a non-profit organization;
- a calendar plan and application form (programs);
- calculations and justification for the use of budget funds (where the actual indicators of activity of non-governmental organizations should be noted, taking into account receipt of their own revenues and expected resources from other sources of financing);
- information on the amount of financing of local (regional) branches (separate units) of non-governmental organizations that are applying for financial support in the corresponding budget year at the expense of local budgets.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the attribution of expenses of a non-productive nature (lease of land plots temporarily not used in economic activity, purchase of goods, services) to expenses in the calculation of income tax” of 07.03.18, No. 909/6/99-99-15-02-02-15/ІПК reported that, since the Tax Code of Ukraine (hereinafter - TCU) did not provide for differences to adjust the financial result to expenses of a non-productive nature, they would fall into the expenses when calculating the income tax according to the accounting rules.
This conclusion was made on the basis of the norm of para.134.1.1 of TCU, which stated that the object of the income tax was equal to the financial result determined in accordance with the Accounting Standards and IFRS, adjusted for tax differences.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the definition of taxable transactions for the purpose of registering a person as a VAT payer” of 07.03.18, No. 922/6/99-99-15-03-02-15/ІПК reminded that according to para.181.1 of TCU for mandatory registration as a VAT payer to be a person whose total amount from the supply of goods/services subject to taxation in accordance with sec. V of TCU was accrued (paid) to such person during the last 12 calendar months, aggregate exceeding UAH 1 million (excluding VAT).
Representatives of fiscal agency equate taxable transactions to transactions that are subject to VAT, and make the following conclusion: when calculating the amount for the purpose of registration as VAT account for transactions subject to VAT at the basic rate of VAT rate of 7 percent, zero VAT rate and exempt from VAT.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the period of application of the list of organizational and legal forms of non-residents who do not pay income tax for the recognition of controlled transactions” of 14.03.18, No. 997/6/99-99-15-02-02-15/ІПК reported that, in the case of business transactions, the criteria specified in para. “г” of para. 39.2.1.7 of TCU, they may be recognized as being controlled from 27.07.17 and should be reflected in the Control Transaction Report.
The taxpayer’s annual income and the volume of business transactions with each counterparty must be calculated for 2017 on the basis of the results of the entire reporting (calendar) year.
It should be recalled that controlled transactions are considered to be economic transactions that may affect the object of taxation of income tax, namely (para.39.2.1.1 of TCU):
a) business transactions carried out with related nonresident persons;
b) foreign economic transactions for the sale and/or purchase of goods and/or services through non-resident commissioners;
c) business transactions with non-residents registered in the states (in territories) included in the list of states (territories) approved by the CMU in accordance with para. 39.2.1.2 of TCU, or which are residents of these states;
d) business transactions with non-residents who do not pay income tax (corporate tax), including income received outside the state of registration of such non-residents, and/or are not tax residents of the state in which they are registered as legal entities. The list of organizational and legal forms of such non-residents regarding the states (territories) is to be approved by the Cabinet of Ministers of Ukraine.
Since 27.07.17, the Resolution of the CMU, No. 480 dated 04.07.17 “On Approval of the List of Organizational and Legal Forms of Non-Residents who do not pay income tax (corporate tax), including the tax on income received outside the state, the registration of such non-residents, and/or are not tax residents of the state in which they are registered as legal entities” transactions with counteragents from this list will be controlled from 27.07.17.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Procedure for VAT Taxation in the Supply of Services for the Provision of Rights to an Intellectual Property Subject Owned by a Non-Resident under a Commission Agreement” of 12.03.18, No. 965/6/99-99-15-03-02-15/ІПК reported: if the accountant got the right to use the object of intellectual property without the possibility of selling it or realization of the alienation in another way, the receipt by the commissioner from the receiver of funds for their further transfer to a non-resident as the owner of such object would be defined as royalties in the sense of para.14.1.225 of TCU.
If the provision of the right to use the object of intellectual property right with the possibility of its sale or disposal in another way is provided to the commissioner, the receipt by the commissioner of the money owner for subsequent transfer to a non-resident for the provision of such right should not be considered royalties. They will be considered as payment for the right to use the intellectual property object, the transaction of which is subject to VAT at a rate of 20%.
Also funds that, in accordance with a commission agreement, are received by a commission agent from the payee directly for the services provided for the provision of the right to an intellectual property object owned by a non-resident should be considered as the payment of the cost of such services, the supply transaction of which is the subject to taxation.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Discounts for a Trip Ticket Which an Employer provides to his/her employee and/or his/her family member” of 12.03.18, No. 931/6/99-99-13-01-01-15/ІПК explained: the norm of para.165.1.35 of TCU grants the employer the right not to tax the cost of trip ticket provided for his/her employee or his/her family member, if their value does not exceed UAH 37 230 in 2018, that is, UAH 18 615 (five minimum wages) per person, under the conditions specified in the mentioned above sub-para. of TCU.
It should be recalled that according to para.165.1.35 of TCU the taxable income of the taxpayer does not include the cost of trip tickets for recreation, health improvement and treatment, including for the rehabilitation of the disabled, in the territory of Ukraine of the taxpayer and/or his family members of the first degree of kinship under the following conditions:
- the trip tickets is provided by the employer-payer of the company income tax;
- the trip tickets is provided either free of charge or with a discount (the income does not include the amount of such discount);
- the trip ticket is provided once per calendar year;
- the cost of the trip ticket (the size of the discount) does not exceed 5 sizes of the minimum wage established on January 1 of the reporting year.
Representatives of the fiscal department report: if the size of the discount on the trip ticket, which the employer gives his/her employee and/or his/her family member the first degree of kinship, exceeds the established maximum income, then the tax agent is required to withhold the personal income tax and the war tax from the total amount of the discount provided. That is, if the cost of the trip ticket (amount of discount) exceeds the non-taxable amount (in 2018 – UAH 18 615), the income tax and the war tax are accrued on the entire cost of the ticket (amount of discount).
If an employee purchases a ticket him/herself, and the employer pays him/her compensation for its value, the benefit established in para. 165.1.35 of TCU is not applicable. Consequently, the employer company, while accruing (payment) compensation, is required to withhold the income tax and the war tax from the employee and reflect the amount of paid income in the calculation of f. No. 1DF with a sign of income “126”.
The Ministry of Finance of Ukraine in its letter “On Recognition of Penalty by Own Revenues” of 29.01.18, No.35140-05/23-92/252 reported that since the penalties received during the conduct of the economic activity to be not included in the cost of services provided (rendered works), they can not be counted as own receipts of budgetary institutions. Consequently, such funds are included in the general fund of state employees.
It should be recalled that there is no separate code for budget classification for penal sanctions, so it is expedient to account them according to the classification code of budget revenues 21081100 “Administrative fines and other sanctions”.
The National Bank of Ukraine adopted its Resolution “On the Optimization of the Circulation of Coins of Small Nominal Values” of 15.03.18, No. 25, which decreed that from July 1, 2018, trade enterprises and services will round out the total cash checks in cash checks if they do not have coins denominations of 1, 2, 5 and 25 kopecks.
The rounding will take place under the following mathematical rules:
1) the amount, which ends with 1 to 4 cents, is rounded towards the nearest amount, which ends with 0 kopecks;
2) the amount, which ends with 5 to 9 cents, is rounded towards the nearest amount, which ends with 0 cents.
If the buyer has kopecks of small nominal values, he/she can continue to use them. And if the seller has such kopecks, he/she can give the buyer the rest of these nominal values.
At the same time rounding will not be carried out during cashless settlements.
Trade enterprises and service providers that use cash registers should make checks in the total amount before rounding and after rounding when making cash payments. Rounding is not a discount or an allowance, advertising or stimulation of the sale of goods (works, services) in the sense of these terms, defined by the legislation of Ukraine.
Also, from 01.07.18 the National Bank will not additionally issue coins in denominations of 1, 2, 5 and 25 cents in cash circulation. However, such coins will continue to be traded and used as a means of payment.
