The Cabinet of Ministers of Ukraine approved initiated and developed by the Ministry of Economic Development and Trade of Ukraine a comprehensive regulation aimed at facilitating business conditions in Ukraine and enhancing its position in the international Doing Business rating.
In particular, the Government simplified the process of bringing the statutes of existing LLC in accordance with the Law “On Limited Liability Companies”. In accordance with the amendments approved in the resolution, the founders of the LLC will be able to elect the version of the statute that is more appropriate to them electronically. The very procedure for registering a partnership will be maximally accelerated.
Also, the Cabinet of Ministers allowed the banking institutions to receive information from the state registers of persons applying for loans. Previously, there was no such opportunity at the legislative level, which complicated the task of banks to predict the ability of a person to fulfill their own obligations in relation to repayment of a loan. The expected result of the decision will be a reduction in the cost of lending.
It was also established a unified, transparent and friendly business procedure for the assignment of postal addresses to construction and real estate. By this time, the legislative field of Ukraine did not have a clear definition of the procedure for giving addresses to ready-made construction projects. This was done by the local authorities at their discretion. The lack of a clear algorithm often resulted in abuses: artificially delaying the procedure and further creating a barrier to registration of new real estate.
The government simplified the registration of the declaration on the readiness of the construction object for exploitation through the expansion of the functional of the e-cabinet of employees of the state architectural and construction control, as well as the definition of the status of electronic service as an electronic cabinet of the customer.
The Cabinet of Ministers passed the resolution on the implementation of environmental monitoring of the discharge of water containing pollutants during the stay of vessels in inland sea waters or the territorial sea, in accordance with the requirements of the Customs Code of Ukraine (the exclusion of ballast water control). By this time, the legislation of Ukraine had an imperfect procedure for the implementation of marine environmental inspections by the State Inspection for the control of water discharges containing pollutants during the stay of vessels in inland waters of Ukraine.
One more Government decision adopted in favor of the business is to simplify the import of automotive spare parts, which will reduce the administrative pressure on the companies importing these products.
The State Fiscal Service of Ukraine issued a draft resolution of the Cabinet of Ministers of Ukraine “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated February 21, 2018, No. 117”.
According to the results of the analysis of registered tax invoices/adjustment calculations (hereinafter – TI/AC), for which there was no automated monitoring of compliance with the criteria for assessing the degree of risk, since the specified TI/AC correspond to the signs in accordance with sub-paras. 2 and 3 of para. 3 of the Procedure for the suspension of registration of a tax invoice/adjustment calculation in the Unified Register of Tax Invoices (hereinafter – the Pending Procedure), it has been established that taxpayers included in the list of risk taxpayers continue to generate a tax credit of probable doubtful origin.
Such standards allow risk payers to increase the number of companies with different executives to carry out transactions with small volumes of supply.
The draft resolution is designed to avoid cases of manipulations by taxpayers by signs, the compliance of which allows to register TI/AC without the implementation of automated monitoring.
The draft resolution proposes to supplement sub-para. 2 of para. 3 of the Procedure of suspension with additional conditions, namely in the total supply for the current month, which should be less than UAH 500 thousand and for one buyer, the amount of such volume should not exceed UAH 50 thousand, the amount of value added tax (hereinafter – VAT) (except for the amount of VAT paid upon importation of goods into the customs territory of Ukraine), paid in the previous month, should amount to more than UAH 20 thousand.
At the same time, sub-para.3 of para.3 of the Procedure of suspension to supplement with an additional condition, which is simultaneously executed with the current (D > 0,05, P < Рм × 1,4). According to it, the total amount of VAT paid in the last 12 calendar months (except for the amount of VAT paid upon the importation of goods into the customs territory of Ukraine) is more than UAH 400 thousand.
Also, the draft resolution proposes to supplement paras. 23 and 28 of the Procedure of suspension with the conditions relating to the compliance of the taxpayer with the criteria of risk, for making decisions on registration of TI/AC in the Unified Register of Tax Invoices (hereinafter – URTI) or the refusal of such registration by the commissions that make decisions about registration.
It is also envisaged to introduce amendments to the Procedure for consideration of complaints on decisions of commissions that make decisions on registration of TI/AC in URTI or refusal of such registration, approved by the Resolution No. 117. Consideration of complaints on decisions of regional level commissions that make decisions on registration of TI/AC in URTI or refusal of such registration and consideration or non-consideration of the data table of VAT payer is carried out by the central level commission, which is a permanent collegiate body of the SFSU, with the participation of the authorized representative of the Ministry of Finance.
In addition, the taxpayer will be entitled to appeal not only the decision of the commission to refuse to register TI/AC, but also the decision of the commission to ignore the data table of the taxpayer.
Comments and suggestions regarding the draft resolution to provide in writing and in electronic forms within one month from the date of publication of the announcement of the SFSU at the following addresses:
The State Fiscal Service of Ukraine: 04655, MPS, Kyiv-53, Lvivska Sq., 8, e-mail: monitoringcentr@sfs.gov.ua.
The Ministry of Finance of Ukraine: 01008, Kyiv-8, Hrushevsky Str., 12/2, e-mail: infomf@minfin.gov.ua.
Proposals and comments can be also sent to the address of the State Regulatory Service of Ukraine: 01011, Kyiv, Arsenal Str. House 9/11, e-mail: inform@dkrp.gov.ua.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure for conducting inspections by tax authorities of VAT tax returns, in which the amount of VAT was charged to the budget reimbursement” of 19.03.2019, No. 1107/6/99-99-12-02-01-15/ІПК reported that taxpayers who were entitled to a budget reimbursement in accordance with para. 200.10 of the Tax Code of Ukraine (hereinafter – TCU) and submitted an application for the refund of the amount of a budget reimbursement receive such a budget reimbursement if agreed upon by the supervisory authority stated VAT refund on the results of cameral inspection and in cases specified by para. 200.11 of this article – the audit referred to in this paragraph conducted in accordance with the TCU.
Para 200.11 of TCU specifies that the controlling body has the right within 60 calendar days following the deadline for submission of a tax return, and provided that such a declaration is submitted after the expiration of the deadline – the day of its actual submission, to conduct a documentary check of the taxpayer in case, if the calculation of the amount of the budget compensation was made at the expense of the negative value formed by the transactions:
- for periods before July 1, 2015, not confirmed by documentary checks;
- from purchase of goods/services for the period up to January 1, 2017, taxpayers who have used a special tax regime, determined in accordance with Art. 209 of TCU.
In accordance with para. 76.1 of TCU, all tax returns should be subject to comprehensive checking. The consent of the taxpayer for verification and his/her presence during the conduct of a desk inspection is not required.
A cameral check of a tax return or a clarifying calculation can be made only during 30 calendar days following the last day of the deadline for their submission, and if such documents were submitted later, by the day of their actual submission (para. 76.3 of TCU).
Documentary unscheduled verification is carried out if at least one of the grounds, determined by Art. 78 of TCU.
One of these grounds is the revealing by the controlling authority of the unreliability of the data contained in the tax returns filed by the taxpayer, if the latter does not provide explanations and their documentary confirmations on the written request of the controlling body, which indicates revealed false data, and the corresponding declaration within 15 working days from the day following the day the request is received, the controlling authority has grounds for carrying out a documentary unscheduled inspection (para. 78.1.4 of TCU).
Along with this reason, in accordance with para. 1 sub-para. 78.1.8 of TCU determines that a documentary unscheduled audit may be conducted if the payer has submitted a declaration in which it is claimed to be reimbursed from the budget of VAT, in the presence of the grounds for verification specified in Section V of TCU, and/or with a negative VAT value, which is more than UAH 100 thousand.
The documentary off-schedule verification is conducted solely with regard to the legality of declaring to VAT reimbursement and/or the negative value with VAT, which is more than UAH 100 thousand (para. 2 of sub-para. 78.1.8 of TCU).
That is, a documentary unscheduled verification of tax returns of VAT in which the taxpayer has declared the amount of VAT to the budget reimbursement, is carried out on the grounds specified in para. 200.11 and Art. 78 of TCU.
The State Commission for Regulation of Financial Services Markets of Ukraine (Derzhcomfinposluh) by the Resolution “On Approval of the Amendments to the Professional Requirements for Chief Accountants and Financial Institutions” of 06.12.2018, No. 2131, approved changes to the Professional Requirements to the Chief Financial Officers and Chief Accountants establishments.
Professional requirements now apply to managers and chief accountants of such financial institutions:
- insurers;
- credit unions;
- pawnshops;
- other financial institutions.
Requirements do not apply to managers and chief accountants:
- banks;
- institutions – professional stock market participants;
- Joint Investment Institutions as part of their activities in the stock market;
- financial institutions with the status of intergovernmental international organizations;
- State Treasury of Ukraine, state trust funds;
- non-state pension funds.
The head of a financial institution must meet the following professional requirements:
- have a master’s degree or equivalent;
- undergo advanced training and pass an examination on the compliance of knowledge with the professional requirements of a typical training program for managers, compiled according to the direction of the financial institution and approved by Derzhcomfinposluh, for a duration of at least 72 hours;
- have at least five years of full-time work experience, with at least two years’ experience as a manager, in particular at least one year as a manager in the financial services markets (for the chairman of the board of the credit union and the head of the pawnshop – the seniority of the work of the head of at least one year).
The chief accountant of a financial institution, in addition to companies of public interest, must meet the following requirements:
- have a higher education not lower than a bachelor’s degree;
- undergo advanced training and to pass an examination on conformity of knowledge with professional requirements under the standard program of training of chief accountants, compiled according to the direction of activity of a financial institution and approved by the Derzhcomfinposluh for a period of at least 72 hours;
- have worked as a financial and/or accounting officer in the field of financial and/or accounting activity or experience in financial services markets in positions related to financial or accounting activities for at least three years.
Head and Chief Accountant should have an impeccable business reputation (the person does not have an impeccable business reputation in the event of the presence of the features specified in para. 22 of the Licensing Conditions for the conduct of economic activities in providing financial services (except for professional activities in the securities market) approved by the Resolution of the Cabinet of Ministers of Ukraine of 07.12.2016, No. 913).
The chief accountant of a company of public interest should comply with the requirements of the Law of Ukraine “On Accounting and Financial Reporting”. Other requirements to the chief accountant of the company of public interest may be determined by the law.
