The President of Ukraine signed Law of Ukraine “On Amendments to the Tax Code of Ukraine on Introduction of a Single Account to Pay Taxes and Fees, Unifies Social Tax to Mandatory State Social Insurance” No. 190-IX of October 4, 2019. The document has already been published in the official press, and since 2021 it will launch the single account to pay taxes, fees and unified social tax (hereinafter – UST).
The payer taxes via user account will either indicate that he or she may wish to use the single account or refuse to do that. You can change your decision once a quarter.
In order to transfer funds to the single account, the State Tax Service, on a daily basis, except for weekends, holidays and non-business days, will form, sign and send to the Treasury a consolidated register of payments from the single account, indicating the payment details of the recipients and other information required according to the legislation.
The register of payments from the single account for an individual taxpayer will be formed in accordance with:
- tax information contained in the taxpayer's settlement documents for depositing funds into the single account;
- tax information contained in the tax invoices (settlements) submitted by the taxpayer, according to which the due date for payment of tax liabilities has accordingly come, taking into account the data of the submitted clarifying declarations (calculations);
- the information contained in the payers' reports on the UST for which the due date for the payment has come;
- other tax information in accordance with the provisions of the Tax Code of Ukraine (hereinafter – TCU).
The register of single-account payments for a particular taxpayer that has been sent to the Treasury within the consolidated register of single-account payments will become available for viewing by such taxpayer through the user account.
The single account will not be used for payment of monetary liabilities and/or tax debt on value added tax (hereinafter – VAT), excise tax on the sale of fuel and ethyl alcohol, as well as for payment of part of the net profit (income) to the budget by the public and communal unitary companies and their associations.
The Ministry of Finance of Ukraine has informed that Ukraine ratified the changes regarding elimination of double taxation with Great Britain, Cyprus and Malaysia.
On ratification with Cyprus
The Verkhovna Rada of Ukraine ratified an agreement with Cyprus on avoiding double taxation and preventing tax evasion with respect to income taxes. The decision was supported by 316 MPs.
On ratification with Malaysia
The Parliament as a whole has approved Bill No. 0002 “On Ratification of the Agreement between the Government of Ukraine and the Government of Malaysia on the avoidance of double taxation and the prevention of tax evasion with respect to income taxes and the Protocol thereto”. 333 MPs voted in favor.
On ratification with Great Britain
The Verkhovna Rada of Ukraine has approved as a whole bill No. 0006 amending the Convention between the Government of Ukraine and the Government of the United Kingdom of Great Britain and Northern Ireland on the elimination of double taxation and tax avoidance. The bill was supported by 323 MPs.
The State Tax Service of Ukraine in the individual tax consultation “On taxation of VAT recruitment services provided by the VAT payer to a non-resident” No. 987/6/99-00-07-03-02-15/ІПК of October 24, 2019 has informed that the recruitment service is an economic or civil agreement. Under such agreement, the person providing the service (resident or non-resident) must send to the disposal of another person (resident or non-resident) one or more natural persons for performing the functions defined by this agreement (subitem 14.1.183 of the TCU).
If the VAT payer provides recruitment services to the non-resident and the staff works at the place of the customer, then such transaction is not subject to VAT as the place of supply of the service is outside the customs territory of Ukraine.
At the same time, recruitment services are not included in the list of services identified by subitem 186.2 and 186.3 of the TCU. The place of supply of such services is determined in accordance with i.186.4 of the TCU – at the place of registration of the provider of such services.
Therefore, transactions for the supply of recruitment services provided by a resident of Ukraine – VAT. payer, are subject to VAT. These services are taxed in the standard manner at the rate of 20%.
The State Labor Service of Ukraine has reminded that workers who adopted a child are entitled to one-time paid leave.
The Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Concerning the Provision of Leave to Adopters for Adoption of an Orphaned Child, a Child Deprived of Parental Care” of May 30, 2019 introduced amendments to Art. 182 of the Labor Code (hereinafter – LCU).
In particular, according to the said article, employees who have adopted the child from orphans or children deprived of parental care are granted the one-time paid leave in connection with the adoption of the child that lasts 56 calendar days, excluding holidays and non-working days after the court decision on child’s adoption enters into force. For two or more children, this leave is granted for a period of 70 calendar days.
Such leave is granted provided that the application for its granting is received no later than three months after the entry into force of the decision of the court on adoption of the child.
In case of adoption of the child(ren) by the spouses, the said leave is granted to one of the spouses at their discretion.
The employees who have adopted the child (or two or more children at the same time) are granted leave to care for the child on the terms and in accordance with the procedure established by Art. 179 and 181 of the LCU.
The State Labor Service of Ukraine has clarified the procedure for dismissing an employee for absenteeism.
The Labor Code of Ukraine in Art. 40 defines absenteeism as a ground for termination of an employment contract with an employee on the initiative of the owner or his authorized body.
At the same time, the Resolution of the Plenum of the Supreme Court of Ukraine “On the Practice of Litigation by Labor Courts” No. 9 of November 6, 1992 discloses the meaning of the concept of “absenteeism” as the absence of an employee at work during the whole working day, or more than three hours continuously or summarily during the working day without good reason.
The labor law does not contain an exhaustive list of reasons that are considered valid. The assessment of the validity of the reason for the absence of an employee at work in each case is provided by the employer, and in case of a labor dispute, by the court.
The reason for the absence of an employee at work can be considered valid if the attendance at work was hindered by material circumstances that could not be eliminated by the employee. According to the case-law, the following can be considered valid:
- fire, flood (other natural disasters);
- accidents or deadtime on transport;
- fulfillment of a civil duty (assistance to the victims of an accident, rescue of public or private property in case of fire, natural disaster);
- care of the sick by a sudden family member;
- absence at work with the permission of the direct manager;
- absence at work due to illness.
Firing for absenteeism is a measure of punishment for breach of discipline. In applying it, it is necessary to comply with the requirements laid down by labor law for applying disciplinary penalties (Art. 149 of the LCU).
The employer applies disciplinary sanction after detection of the misdemeanor, but not later than one month from the day of the discovery, without taking into account the time the employee is excused from work due to temporary disability or being on leave. Disciplinary penalties may not be imposed later than six months after the commission of the offense.
The day of dismissal must be the last day of the employee's work before the day on which he or she took the leave, provided that after his/her absenteeism the employee has no longer shown at work.
On last day of work:
- the full settlement must be made with the employee (Art. 116 of the LCU);
- the employee must be given a properly formed work book (p. 1 of Art. 47 of the LCU) and a copy of the order for dismissal (p. 2 of Art. 47 of the LCU).
You cannot dismiss the employee for absenteeism during his/her absence, given that he/she has not been at work for a long time (for example, more than two weeks) and does not have any information about his/her location and reasons for absenteeism.
In view of Art. 149 of Labor LCU the receiving of written explanations is a prerequisite for disciplinary action. Due to the inability to prove the absence of an employee without good reason, his/her dismissal under i. 4 of Art. 40 of LCU is impossible.
Therefore, in the event of dismissal of the employee due to absenteeism, it is important to follow the dismissal procedure. The employer must bring to the attention of the employees the documents establishing the work responsibilities, working hours, etc., against personal signature, draw up intermediate documents in accordance with the requirements of the law, observe the terms of disciplinary action.
