National Bank of Ukraine has prepared instructions for its clients relating to introduction of International Bank Account Number – IBAN, which contains 29 alphanumeric characters, as of August 5, 2019. Starting November 1, 2019, the application of IBAN will be compulsory for the clients of all banks throughout Ukraine when transferring both national and international currency funds, including cross-border transfers. That means that from November 1, 2019 all transfers will be possible only applying IBAN.
Due to this a regulator recommends the banks to bring this document information to the attention of their clients.
Thus, the banks’ clients:
- starting August 5, 2019 will be able to receive information from the bank on change of the current account in accordance to IBAN standard to notify their business partners and indicate this information in payment documents.
At the same time the change of current account due to IBAN standard entails no amendments to the provisions of the agreement (bank account/payment and cash management/bank deposit agreements, etc.)
- starting August 5, 2019 till October 31, 2019 the information on “Bank Code” and “Account” may be filled out in fund transfer documents, any variation possible.
In fund transfer documents when filling out ordering customer/beneficiary information the clients may indicate ordering customer/beneficiary account number and bank code or only ordering customer/beneficiary account number in accordance with IBAN standard. I case ordering customer/beneficiary account number is filled out in accordance with IBAN standard the place for “Ordering customer/beneficiary bank code” should be filled with zero;
- as of November 1, 2019, “Account” information of payment document must indicate ordering customer/beneficiary account number only in accordance with IBAN standard.
At the same tine Ukrainian banks will:
- starting August 5, 2019:
- open accounts (current, deposit), escrow accounts according to IBAN standard requirements;
- provide formation of client’s bank statement since its opening and opening balance sum according to current account till its change in conformity with IBAN standards (“account history”) including subsequent approval of transactions on any date after change of client’s current account to IBAN account;
- implement documents on seizure of cash/mandatory debit/collection of financial means regardless of account number, indicated in those documents (current account prior to its change under IBAN standard/IBAN standard);
- from August 5, 2019 to October 31, 2019:
- accept for implementation funds transfer documents/credit funds to the account of the beneficiary using information filled out be the ordering customer;
- inform the regulatory bodies on change of clients-economic entities current accounts in accordance with IBAN standard;
- submit (without clients’ applications) list of accounts in accordance with IBAN standard to the Pension fund of Ukraine bodies/social security bodies.
State Fiscal Service of Ukraine answered the question of category 104.13 “ЗІР” “Does IE tax obligations apply according to general taxation system if income tax advances were undue?”
An individual entrepreneur (hereinafter – IE) is subject to penalties and fines in accordance with general taxation system for failure to pay or undue payment of total tax obligations, defined in annual property and income statement (hereinafter – tax statement).
Given that the final personal income tax assessment (hereinafter – PIT) for fiscal year is prepared by payer according to data laid down in annual tax statement including PIT payed during the year based on documentary confirmed payment, undue advance payments entail no penalties.
State Service of Ukraine for Labor informed on rules that govern reassignment of employees to other posts.
The reassignment is such relocation of employee that implies change in functions of that employee (specialization, qualification, entity or place where employee worked). The reassignment to other permanent job, entity, place of work is possible only with employee’s consent.
The definition of employee’s duties is based on specialization (position). And when the title of such specialization (as well as qualification) or position is defined the duties of the employee are specified. They may be significantly broadened in comparison to those set in the norm concerning respective specialization (position) or may be even narrowed down.
An employer’s right to broaden or narrow down the range of duties is restricted. The following is to address this issue:
1) employee’s consent;
2) if applicable, usage of procedure provided for in p. 3 art. 32 of Labor Code (hereinafter – LC), in particular: “Due to changes in the organization of production and labor it is allowed to change essential conditions of work when continuing the work on the same specialization, qualification or position. The change of the essential conditions of work, in particular the systems and sizes of remuneration, privileges, the regime of work, the establishment or abolition of part-time, the combination of occupations, the change of categories and titles of positions and others, must be notified to the employees no later than two months. ”
It is advisable to formalize the employee’s reassignment by issuing an order or regulation. Despite the fact that the law contains no such requirement its disregard brings more incertitude to the relationships between the parties of a labor agreement that affects interests of both employer and employee.
The employer’s rights to reassign an employee is restricted by the terms of the labor agreement. Beyond its scope it will be illegal.
The Supreme Court of Ukraine in its judgment of May 24, 2019 on the case No.816/4537/14/ held that tax payer, when choosing partners for agreement conclusion, must be careful as further implementation of such agreements, receipt of income and right to have certain preferences, in particular the formation of tax credit from value-added tax (hereinafter – VAT), depend on it.
The absence of real nature of respective transactions may be evident due to existence of such circumstances: impossibility to conduct specified transactions by a tax payer considering time, location of property or material resource level, economically vital for goods production, work and service delivery, failure to fulfill entrepreneurial activities by a person indicated as manufacturer, absence of conditions a ta[ payer needs to achieve results of respective entrepreneurial, economic activity due to absence of administrative or technical staff, fixed assets, business assets, storage facilities, vehicles, conduct of transactions in goods and materials, which have not been manufactured or could not be manufactured in amount specified by the tax payer in the accounting documents.
Thus, confirming conduct of business transactions an entity must have respective original documents which must be in proper form, contain all necessary information, be signed by authorized persons and, together with the established circumstances of the case, in particular concerning possibility of entities to conduct appropriate transactions considering time, location of property or material and human resources level, economically vital to meet the requirements of the agreement specified by the agreements, must attest real conduct of business transaction that constitutes grounds for preparation of tax accounting by the payer.
