The State Fiscal Service of Ukraine in its letters “On the Specifics of Rent Collection in 2018” of 18.01.18, No. 1464/7/99-99-12-03-04-17 and “On Administration of rent for special use of water in 2018” of 19.01.18, No. 1579/7/99-99-12-03-04-17 reported what rent payers should expect in 2018.
Consequently, payers of rent for the use of subsoil should pay attention to the following innovations in 2018:
1) it was expanded the list of objects that are not the subject to rent due to the volume of gas (methane) of degassing of coal deposits, which does not meet the quality requirements for natural gas intended for transportation, industrial or municipal consumption (para. 252.4.8 of the Tax Code of Ukraine, hereinafter − TCU);
2) it was introduced privileged rates in the amount of 12% and 6% of the value of objects subject to rent for natural gas, which will be extracted from deposits up to and beyond 5 000 meters respectively (hereinafter − preferential rate). Thus, the identification of the reporting period, in which privileged rates could be applied, can be made on the basis of the relevant sections obtained from the payer of the well Passport;
3) it was approved the rent rates for hydrocarbons produced in the conditions of production sharing agreements of 2 and 1.25% for oil and natural gas respectively (para. 252.20 of TCU);
4) from 2018 it was introduced the distribution of rent received from hydrocarbon raw materials in the ratio of 5 to 95 percent of the general fund of local and state budgets respectively (para. 41-42 of Art. 64 and para.51 of Art. 29 of the Budget Code of Ukraine).
That is, in January 2018, the payment of the rent for the use of mineral resources for the extraction of hydrocarbon raw materials paid by taxpayers in December 2017 will be credited in full to the general fund of the State Budget of Ukraine;
5) the rent rates for the use of mineral resources for non-mining purposes are increased, namely:
- for storage of natural gas and gaseous products, oil and other liquid petroleum products rates increased by 16.7%;
- for keeping wine materials, production and storage of wine products, as well as for carrying out other business activities − by 16.8%;
- for the cultivation of mushrooms, vegetables, flowers and other plants − by 16.2%;
- for storage of food products, industrial and other goods, substances and materials − by 17.6%.
The representatives of the State Fiscal Service of Ukraine (hereinafter − SFSU) informed the payers of rent for special use of water about the deadlines for reporting and payment of rent in 2018:
1) the deadlines for submission of tax returns and payment of tax obligations on rent payments are considered as:
- quarter IV, 2017: February 9, 2018, and the last day of payment of tax − February 19, 2018;
- quarter I, 2018: May 10 and 18, 2018 respectively;
- quarter II: August 9 and 17, 2018 respectively;
- quarter III: November 9 and 19, 2018 respectively;
- quarter IV: February 11 and 19, 2019 respectively;
2) payers of the rent pay the amount of rent payment by one payment order to the accounts opened in the bodies that carry out treasury service of budget funds, which ensure the distribution of these funds in the following ratio:
- 45% of the rent − to the general fund of the state budget (except for rent for the special use of water of water objects of local significance);
- 45% of the rent − to the general fund of local budgets (except for rent for the special use of water of water objects of local significance), which is credited to the Autonomous Republic of Crimea and regional budgets at the place of its collection;
- 10% of the rent (except for rent for special use of water of water bodies of local significance) − to the special fund of the state budget;
3) from 2018, the norm of para. 255.3 of TCU will determine the subject to rent as the actual volume of water, which is accounted as the result of water intake and water treatment, for example, clearing or processing to the regulatory requirements for consumption set for the corresponding water object.
The State Fiscal Service of Ukraine in its individual tax advice “On the possibility of making an adjustment calculation by a branch (structural subdivision) to the tax invoice made by the parent company (VAT payer)” of 12.01.18, No. 122/6/99-99-15-03-02-15/ІПК explained to the payers of value added tax (hereinafter − VAT) how to adjust tax liabilities if the tax invoice for the supply of goods/services was made by the parent company, indicating in the appropriate column its tax number.
In this case, the calculation of the adjustment should be made solely by the direct supplier, as defined in the civil law contract, that is, the parent company.
It should be recalled that if the branches not registered by the VAT payers independently carry out the supply of goods/services and make payments with suppliers/consumers, the VAT-payer company, which includes such structural subdivisions, may delegate to them the right to make tax invoices. In order to do this, each branch is assigned a separate digital number, which should be notified in writing to the controlling authority at the place of registration of the legal entity (para.1 of the Procedure for filling in the tax invoice, approved by the order of the Ministry of Finance of 31.12.15, No. 1307).
The State Fiscal Service of Ukraine in its individual tax advice “On the adjustment of the financial result to the amount of the provision for the payment of pensions” of 19.01.18, No. 232/6/99-99-12-02-03-15/ІПК reported whether it is necessary to correct financial result on the costs associated with the formation of security for the payment of preferential pensions.
Such expenses are referred by the representatives of the fiscal department directly to the costs associated with payment of labor. Thus, it is not required to make adjustment under paras. 139.1.1 and 139.1.2 of TCU. Consequently, the formation and use of collateral to compensate for preferential pensions will be exclusively based on accounting rules.
The tax authorities paid attention to their advice at the use of collateral that was created before 01.01.15. Thus, if the cost of creating such a reserve is not included in the object of taxation until 01.01.15, then, using it today, the payer can reflect expenses according to para. 24 of sub-para. 4 of sec. XX of TCU.
The State Fiscal Service of Ukraine in its individual tax advice “On the exemption from taxation of income of a non-resident in the case of receiving a certificate after the end of the reporting year” of 15.01.18, No. 158/6/99-99-12-02-03-15/ІПК drew attention on the nuances of the use of the certificate on the resident status of a non-resident counterparty to avoid double taxation (para. 103.4 of TCU).
Such reference for the previous financial year can be used as a basis for the release (reduction) of the imposition of a tax on repatriation in accordance with the terms of an international agreement in the reported year. But only on condition that the non-resident will submit a certificate for this reporting tax year after its expiration. It should be emphasized that otherwise, such income from the source of origin from Ukraine is taxed in the general order (para. 103.10 of TCU).
The State Fiscal Service of Ukraine in its letter “On the calculation and payment of the unified contribution” of 17.01.2018, No. 1431/7/99-99-13-02-01-17 reminded: since 01.01.18, round of the unified contribution payers included members of the farm, if they do not belong to persons who are subject to insurance on other grounds (para. 51 of the first part of Art. 4 of the Law of Ukraine “On collection and accounting of the unified contribution to the mandatory state social insurance” of 08.07.10, No. 2464-VI, hereinafter − Law on USC).
Representatives of the fiscal department noted that the members of the farm are not payers of the unified payment in the sense of Law on USC, if:
- they are both insured at the same time and employers pay unified contribution to them from the amount of the accrued salary and/or the amount of remuneration for the performance of works (rendering of services) under civil law contracts;
- they are individuals − entrepreneurs, heads of farms, both legal entities and individuals − entrepreneurs with the status of family farming.
In addition, farmers are exempted from paying unified contribution if they receive a retirement pension or are persons with disabilities or have reached the age specified in Art. 26 of the Law of Ukraine “On Compulsory State Pension Insurance” of 09.07.03, No. 1058-IV, and receive a pension or social assistance in accordance with the law (part four of Art.4 of the Law on USC).
Form 01.01.18 the basis for the calculation of unified contribution for members of farms is the amount of income (profit) received from their activities, which is subject to income tax (para. 2 of part 1 of Art. 7 of Law on USC). In this case, the amount of unified contribution may not be less than the size of the minimum insurance premium per month. If the payer does not receive income (profit) in the reporting quarter or in a separate month of the reporting quarter, he/she is obliged to determine the basis of payment and pay unified contribution in the amount not less than the minimum insurance premium.
The Ministry of Social Policy of Ukraine in its letter “On the introduction of quotas for employers with a number of full-time employees from 8 to 20 persons for the employment of persons of pre-retirement age” of 16.11.17, No. 718/0/126-17/241 reported: in case of failure by the employer during the year, the quota for employment of citizens of the pre-retirement age, it should be charged fine for every unreasonable refusal to employ such persons within the quota of twice the amount of the minimum wage established at the time of detection of the violation (para. 2 of Art. 53 of the Law of Ukraine “On employment of population” of 05.07.12, No. 5067-VI).
It should be recalled: the quota for employment of non-competitive citizens (in particular, people of pre-retirement age, which until the onset of the right to a pension on the basis of not more than 10 years old) is 5% of the average number of full-time employees for the previous year for all enterprises, institutions and organizations with a staff number of more than 20 people.
In addition, from 2018, a quota for the employment of persons of pre-retirement age in the amount of at least one person in the average number of full-time employees was introduced for enterprises (institutions, organizations) with a staffing of 8 to 20 persons.
However, the requirement to implement the quota for the employment of persons of pre-retirement age for employers with a number of full-time employees of 8 to 20 persons does not apply to individuals-entrepreneurs.
