The Cabinet of Ministers of Ukraine has announced that the state will pay compensation for the consequences of complications after vaccination against COVID-19.
Since April 23, 2021, Cabinet of Ministers Resolution “Some issues of state compensation for damage associated with complications that may occur after vaccination against acute respiratory disease COVID-19 caused by coronavirus SARS-CoV-2” No. 371 of March 31, 2021 has been in force.
It determines the procedure for state compensation for damage associated with complications that may occur after vaccination against COVID-19.
Therefore, if a person is assigned a disability group associated with complications that may occur after vaccination against COVID-19, then the payment is made once in the following amounts:
- 400 times the subsistence level for able-bodied persons, established on January 1 of the calendar year (UAH 908,000 in 2021) for persons with disabilities of group I;
- 350 times the subsistence level for able-bodied persons, established on January 1 of the calendar year (UAH 794,500 in 2021) for persons with disabilities of group II;
- 300 times the subsistence level for able-bodied persons, established on January 1 of the calendar year (UAH 681,000 in 2021) for persons with disabilities of group III.
In the event of the death of a person resulting from vaccination against COVID-19, the family members, parents, dependents of the deceased will be paid 750 times the subsistence level for able-bodied persons, established on January 1 of the calendar year (UAH 1,702,500 in 2021).
However, when compensation is received for damage associated with complications that may occur after vaccination with COVID-19, vaccines or other medical immunobiological drugs for specific prophylaxis of COVID-19 under the procedure of the World Health Organization in the framework of the global initiative COVAX, then this state compensation is not paid.
The investigation and establishment of the causal link between the establishment of disability or death and the use of the vaccine will be conducted by the emergency response team after immunization and will draw up an appropriate investigation protocol in a form approved by the Ministry of Health (hereinafter – MOH).
Benefits in case of disability are assigned and paid by the MOH, and in case of death – once by the MOH, in equal parts to persons entitled to benefits.
The President of Ukraine has signed Law “On Amendments to Article 22 of the Law of Ukraine “On Compulsory State Social Insurance” on Social Protection in the Event of Temporary Disability” No. 1380-ІХ, which was adopted by the Parliament on April 13 this year.
The document restores the right to receive financial assistance from the Social Insurance Fund of Ukraine during a period of temporary incapacity for work due to illness or injury not related to an accident at work (so-called health benefits).
Due to a legal conflict, these payments were canceled after amendments to the Law of Ukraine “On Compulsory State Social Insurance”, which come into force on June 30, 2021. This could result in a shortage of 2.5 million people of health benefits. The Law, signed by the President, corrects the conflict and restores the right to receive this material aid.
The document enters into force on the date of entry into force of the Law of Ukraine “On Rehabilitation in the field of health care” – June 30, 2021.
The Ministry of Finance of Ukraine has approved the relevant consultation by Order “On approval of the General Tax Consultation on Certain Issues of Value Added Tax Taxation” No. 238 of April 27, 2021.
In it, the Ministry has answered two questions concerning the application of item 261 of section 2 chapter XX of the Tax Code of Ukraine (hereinafter – the Tax Code). According to it, software supply transactions are temporarily exempt from value added tax (hereinafter – VAT) from January 1, 2013 to January 1, 2023.
1. Are transactions for the supply of software products, the cost of which includes services for its technical support, exempt from VAT?
Software products that are exempt from VAT include any changes, updates, applications, additions and/or extensions to the functionality of computer programs, the right to receive such updates, changes, applications, additions for a certain period of time.
If the transactions of providing technical support services for software products, in particular the installation, configuration, testing, detection and elimination of defects, are included (is part of the supply of such products) to the cost of software products, including the cost of changes, updates, additions and/or extension of the functionality of computer programs, the right to receive such updates, changes, applications, additions for a certain period of time, such transactions are exempt from VAT.
2. Are transactions for the supply of technical support for software products that are not part of the cost of such products exempt from VAT?
If the software support transactions include any changes, updates, applications, additions, including troubleshooting and error correction, and/or extension of the functionality of computer programs, the right to receive such updates, changes, applications, additions during a certain period time, with the simultaneous supply for one cost of services for installation, configuration, testing, detection and elimination of deficiencies, advice on the use of software products, such transactions are exempt from VAT.
Software technical support services, which provide exclusively the provision of services for installation, configuration, testing, detection and elimination of deficiencies, advice on the use of software, which do not involve any changes to the software, and the cost of which does not include changes, updates, applications, additions and/or extensions of computer programs, as well as the right(s) to receive such changes, updates, applications, additions and/or extensions of computer programs for a certain period of time, are subject to VAT on general grounds.
The State Tax Service of Ukraine has reported that the amount of accrued salary paid to a foreigner under an employment contract is the basis for calculating the single social contribution (hereinafter – SSC).
Peculiarities of regulation of labor relations of foreigners and stateless persons working in Ukraine are defined in Art. 54 of Law of Ukraine “On Private International Law” No. 2709-ІV of June 23, 2005, according to which the employment relations of foreigners and stateless persons working in Ukraine are not regulated by the law of Ukraine if:
1) foreigners and stateless persons work as part of diplomatic missions of foreign states or missions of international organizations in Ukraine, unless otherwise provided by an international treaty of Ukraine;
2) foreigners and stateless persons outside Ukraine have concluded employment contracts with foreign employers – natural or legal entities for the performance of work in Ukraine, unless otherwise provided by agreements or an international treaty of Ukraine.
According to Art. 253 of Labor Code of Ukraine No. 322-VIII of December 10, 1971, persons working under an employment agreement (contract) at enterprises, institutions, organizations, regardless of ownership, type of activity and management or an individual, are subject to obligatory state social insurance.
According to para. 2 item 1 part 1 of Art. 4 of Law of Ukraine “On the collection and accounting of a single contribution to the obligatory state social insurance” No. 2464-VI of July 8, 2010 (hereinafter – Law No. 2464), payers of SSC are employers, including enterprises, institutions, organizations, other legal entities who use the hired labor of individuals on the terms of an employment agreement (contract) or on other terms provided by law or under civil law agreements.
Insurers are employers and other persons who, in accordance with Law No. 2464, are obliged to pay SSC (item 10, part 1 of Art. 1 of Law No. 2464).
According to item 3, part 1 of Art. 1 of Law No. 2464, the insured person is a natural person who, in accordance with the legislation, is subject to obligatory state social insurance and pays (paid) and/or for which the SSC is paid or has been paid in accordance with the procedure established by law.
The basis for accrual of SSC for these payers is the amount of salary accrued to each insured person by types of payments, which include basic and additional salaries, other incentive and compensation payments, including in kind, determined in accordance with the Law of Ukraine “On Remuneration”, and the amount of remuneration to individuals for the performance of works (provision of services) under civil law contracts (Art. 7 of Law No. 2464).
Payers of SSC are obliged to accrue and pay SSC in a timely manner and in full (item 1, part 2, Art. 6 of Law No. 2464).
Therefore, the amount of accrued salary (income) paid by a legal entity to an insured natural person – a foreigner in accordance with the employment contract, is the basis for accrual of SSC.
