The Verkhovna Rada of Ukraine adopted the Law “On Amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine on provision of balance of budget revenues in 2016” (the legislation was registered under № 3688).
The legislative act provides for the regulations concerning the authority of united territorial communities to participate in tax relations, including the establishment of local taxes and fees, provision of tax benefits and partly change the reason for a documentary unscheduled inspections in a part of exceptions of inspection of violation of tax legislation as well as by the results of audits of other taxpayers.
The law provides for establishing of Register of applications for return of sums of budget refund. The data to the Register should be added in chronological order of receipt of applications as well as the return of agreed amounts of budgetary compensation should be in chronological order according to the order of inclusion of applications for refund of amounts of budgetary compensation in the Register.
According to the explanatory note the following changes to be provided for:
- improvment of the procedure of VAT refund from the budget, which should provide the same requirements and rights for all taxpayers, including the order of making the applications for VAT refund;
- introduction of official publication of information on VAT refunds from the budget in the form of a Register with reflection of data about the taxpayer in it, declared to the compensation of tax amounts from the budget and conditions of their reimbursement;
- introduction of taxation of VAT transactions of services on the transit of natural gas with automatically repealing of rent payments for natural gas transportation by pipelines in the territory of Ukraine;
- introduction of the VAT exemption for goods and services supplied and imported as international technical assistance and financed at the expense of international technical assistance;
- introduction of VAT exemptions for banks’ transactions and other financial institutions of property supply acquired by them in ownership as a result of foreclosure on such a property;
- a unified base establishing in an amount of 18% (instead of two current rates of 15% and 20%); rate is 5% for dividends;
- tax exemption of funds amounts provided to the taxpayer by the international financial institution in connection with implementing measures on energy efficiency and energy conservation;
- tax exemption of amounts forgiven (cancelled) by the lender under credits in foreign currency, obtained to purchase a single housing (mortgage loans);
- rates reduction of annual income of 20 million hryvnias to 5 million hryvnias for taxpayers of group III;
- rates increasing for taxpayers of group III: from 2 to 3% (for VAT payers) and from 4 to 5% (for non-payers of VAT);
- increasing of rates of the unified tax for taxpayers of group IV in 1.8 times (agricultural enterprises);
- abolition of payment of advance payments on corporate income tax;
- introduction of quarterly reporting period for income tax for companies, which annual income is over 20 million from any activity.
The legislation provides for increasing of rate of excise tax on alcohol, alcohol distillates and alcoholic drinks by 50% in relation to the current today, for beer by 100%, for wines by 100% except natural grape wines.
In addition, specific rates of excise tax on tobacco products, tobacco and manufactured tobacco substitutes, and the minimum excise tax burden and payment of the excise tax on tobacco products to be increased by 40%, ad valorem rate to be left unchanged.
It is also proposed to establish minimum wholesale and retail prices for tobacco products, tobacco and manufactured tobacco products.
The procedure of preferential taxation of agricultural enterprises was amended, in particular special VAT regime.
It is known that under the current system of special regime accrued VAT amount is not the subject to payment to the budget and totally remains under control of enterprise.
The law also amended the Law of Ukraine “On the collection and accounting of Unified contribution for obligatory state social insurance”, “On Customs Tariff of Ukraine”, “On State Registration of Legal Entities and Individual Entrepreneurs”, “On compulsory state pension insurance”.
The Verkhovna Rada of Ukraine adopted the Law “On the State Budget of Ukraine for 2016” (the legislation was registered under №3000).
The legislative act for 2016 establishes the following general indicators of the State budget:
- revenues amounting to UAH 595.1 billion;
- expenditures amounting to UAH 684.5 billion;
- the budget deficit is set at 3.7% of projected GDP.
The document established minimum living wage per person per month from 1 January 2016 in the amount – UAH 1 330, from May 1 - UAH 1 399, from December 1 – 1 496 UAH, and for basic social groups and demographic groups of population:
- children under 6 years: from 1 January 2016 - UAH 1 167, from May 1 - UAH 1 228, from December 1 – UAH 1 313;
- children aged from 6 to 18 years: from 1 January 2016 - UAH 1 455, from May 1 - UAH 1 531, from December 1 – UAH 1 637;
- able-bodied persons: from 1 January 2016 - UAH 1 378, from May 1 - UAH 1 450, from December 1 - UAH 1 550;
- people who are unable to work: 1 January 2016 – UAH 1 074, from 1 May - UAH 1 130, from December 1 – UAH 1 208.
The minimum wage in 2016 is set at a monthly rate: from 1 January - UAH 1378, from May 1 – UAH 1 450, from December 1 – UAH 1550. By the hour rate: from January 1 - UAH 8.29, from May 1 – UAH 8.69, from December 1 – UAH 9.29.
The law provides that in 2016 the minimum subsistence level (guaranteed minimum) for the appointment of aid under the Law of Ukraine “On state social assistance to needy families” as a percentage to the subsistence minimum for basic social and demographic groups of population is: for able-bodied people - 21 percent, or children - 85 percent, for people who unable to work and for disabled people - 100 percent of the relevant living wage.
The size of state social assistance to needy families in 2016 should not be more than 75 percent of provision level of minimum living wage for a family.
The level of provision of living wage (guaranteed minimum) for eligibility for exemption from payment for child nutrition in state and communal children’s pre-school institutions under the Law of Ukraine “On Preschool Education” should be increased in 2016 according to the growth of living minimum wage.
The Verkhovna Rada of Ukraine adopted the Law “On public procurement” (№ 3559), which introduced electronic procurements.
The document is applied:
- to customers on condition that purchase price of an item of goods (goods), service (services) equals or exceeds UAH 200 thousand and works – UAH 1.5 million;
- to customers that carry out activities in specific areas of economic activity on condition that purchase price of an item of goods (goods), service (services) equals or exceeds UAH 1 million and works - 5 million.
During the procurement of goods and services which price is less than established price in sections 2 and 3 of this paragraph, the customers are entitled to adhere to principles of public procurement established by this Law, and can use e-procurement system for the purpose of selecting a supplier of goods, services provider, and works performer for contract conclusion.
In the case of procurement of goods, works and services without the use of e-procurement system on condition that the cost of the purchase equals or exceeds UAH 50 thousand and is less than the cost established in sec. 2 and 3 of this para., the customers are required to make public a report on the agreements concluded in the electronic procurement system.
The Verkhovna Rada of Ukraine adopted the Law “On measures for encouragement of foreign economic activity” of 10.12.2015, № 886-VIII (Law № 3533). The Law from 1 January 2016 fully abolished additional import duty (the Law of Ukraine “On measures of stabilization of balance of payments of Ukraine according to Article XII of the General Agreement on Tariffs and Trade 1994” of 28.12.2014, № 73-VIII).
The Cabinet of Ministers of Ukraine by its Resolution “On Approval of License conditions of business activities of mediation in employment abroad” of 16.12.15, № 1060 approved the licensing conditions for business activities of mediation in employment abroad. The conditions established a comprehensive list of the documents attached to the application for obtaining a license, as well as a comprehensive list of compulsory requirements when the mentioned activity to be performed.
In particular, it is determined that an essential annex to the agreement on the provision of mediation in employment abroad is a certified by a licensee copy of agreed project of an employment contract with a foreign employer.It is also provided that the licensee has no right to receive payment for services before the day of a receiving by the client of the signed copy of an employment agreement by the foreign employer and signing of the act of rendered services.
The Ministry of Finance of Ukraine by its Order of 25.11.15, № 1088 approved the procedure for conducting of counter-checks during the documentary field checks of compliance with the laws of Ukraine on Civil customs (hereinafter - Procedure) by the State Fiscal Services of Ukraine (hereinafter - Procedure).
The mentioned counter verification is carried out if the person to a written request of customs officers does not give explanations and necessary documentary proofs about product that moved through the Ukrainian border. That person is given three working days of receipt of the request. If the person misses the deadline, customs officers are entitled to conduct counter verification, for preparation of which they are provided further 2 working days. At the results of counter verification a person or his/her authorized representative should be given a corresponding certificate for a signature.
