The President of Ukraine approved the Law of Ukraine “On the creation of the free economic zone “Crimea” and on the specifics of economic activity implementation in the temporarily occupied territory of Ukraine” of 12.08.2014, №1636-VII. The Law was adopted by the Verkhovna Rada of Ukraine on 14 August 2014.
The socio-economic incentives for the growth of investment activity, the development of tourism infrastructure and the increase of public employment, the enhancement of the role of territorial communities of the Crimea and Sevastopil city in solving of their daily problems are provided for the Crimea within the free economic zone for the term of ten years, according to this Law.
The Law of Ukraine “On the creation of the free economic zone “Crimea” and on the specifics of economic activity implementation in the temporarily occupied territory of Ukraine” aimed at prevention of reduction of employment of citizens of Ukraine and the decrease in their incomes due to the introduction of repressive economic systems of other countries in the Crimea during the period of occupation.
During the occupation, the national taxes and charges, the UST and the duty on obligatory state pension insurance are not charged from the incomes, transactions and /or other subjects of taxation, obtained by legal entities and individuals in the temporary occupied territory.
Besides, the electronic payments system of the NBU and the domestic government payment systems, their organization payments are the residents of Ukraine, should not be applied in the temporarily occupied territory.
The Cabinet of Ministers of Ukraine amended the Procedure of Visas processing for entry and transit through Ukraine by the Resolution of 23.09.2014.
Thus, the statutorily certified copy of employment permission of foreigners and stateless persons, which is issued by the State Employment Service, is additionally required to obtain the long-term visas.
The work agreement (contract) should be submitted for foreigners and stateless persons, whose employment is carried out without indicated permission, and the work agreement (contract) and the certificate of foreign Ukrainian – for people who have the status of foreign Ukrainian.
The Visa processing with a time limit set is also specified (to 15 calendar days). So, the visa is issued before maturity at the request of the foreigner or stateless person if it is possible, in defined terms by the authorized body.
The Visa processing in the Border Inspection Post is carried out at the day of receiving of visa application form and documents required for visa processing.
The State Fiscal Service of Ukraine in its letter of 13.08.2014, №1128/5/99-99-20-03-01-16 considered a set of issues regarding the tax liabilities repayment.
It was the answer to the question when the tax and duties amounts are considered to be paid. The fiscals noted that the compulsory payments are considered to be credited to the appropriate budget from the day of crediting funds to the single treasury account. Also, the tax liability should be regarded as performed from the day of paid amounts entering to the single treasury account.
There is the answer for the question whether to make payment again if the funds haven’t been arrived to the budget. In spite of the reason of failure to pay of tax liabilities, particularly, in case when bank exceeds the term for execution of Clients’ Order for funds transfer, the Tax Code of Ukraine does not free the taxpayer from the obligation to pay the principal amount of the tax liability or tax debt, and the tax authority – from such tax debt collection. Thus, in the case of failure to receive the funds to the budget accounts of the State Treasury and failure to credit them to the state or local budgets revenues, the tax liabilities or the tax debt cannot be considered as discharged.
The State Fiscal Service of Ukraine in its explanatory statement of 23.09.2014 provided the memo regarding the tax war charging.
Thus, the aid for funeral at the expense of the employer or the Social Security Fund is not included in wages, so it is not the subject to the war tax.
The experts of fiscal agencies gave the explanation regarding the war tax charging:
- different types of financial aid;
- the funds amounts, which are transferred by the employer to the account of the health care institution for employee treatment and medicines purchasing;
- the average wage amounts of employees called up for military service by conscription during the mobilization, for special period;
- other types of payments.
The State Fiscal Service of Ukraine reminded in its clarification that the businesses software industry are entitled to apply 5% rate for taxation of incomes received from preferential types of economic activities. Thus, the dividends payments, within earned profit for the period when the dividends are paid, on implementation of preferential types of economic activities, are taxed at a rate of 5% in the period of their payment.
The advance installment amounts in the payment of dividends are taken to the lines 20-22 of the declaration of income tax, including:
- line 20 – the amount of accrued advance installment due to the dividends payments (their equivalent payments), which is to be paid in the reporting (tax) period at the location place of legal entity - consolidated tax payer;
- line 21 – the amount of accrued advance installment due to the dividends payments (their equivalent payments), which is to be paid in the previous reporting (tax) period of the current year at the location place of legal entity taking into account the adjustments (line 20 of the declaration for the previous reporting (tax) period of the current year);
- line 22 - the amount of accrued advance installment due to the dividends payments (their equivalent payments), accrued according to the latest calendar quarter of the reporting period, which is to be paid at the location place of legal entity (line 20 – line 21).
The Ministry of Economic Development and Trade of Ukraine by the Order of 27.08.2014, № 1036 amended the procedure of consideration the materials by the Ministry of Economy of Ukraine, the materials are the basis for imposition of financial sanctions under Article 17 of the Law of Ukraine “On State regulation of production and turnover of ethyl alcohol, cognac and fruit alcohol, alcoholic beverages and tobacco goods” of 03.12.2008, № 817 (hereinafter –the Procedure).
The amendments provided for the imposition of the penalties in the case of violation by the business entities of the procedure of reports submitting on the quantity of imports and / or exports of ethyl alcohol, cognac and fruit alcohol, alcoholic beverages and tobacco goods based on the materials of the results of such reports processing by the Ministry of Economic Development and Trade of Ukraine.
The non-tariff regulation department processes the received reports, prepares the materials on imposition of financial sanctions, indicating the reasons for the decision to impose the financial sanctions and transfers them to the department of State regulation of foreign economic operations.
The department of State regulation of foreign economic operations examines the received materials and during 30 days from the date of their recording in the Ministry of Economic Development prepares the decision on the imposition of financial sanctions or written refusal in their application, indicating the reasons.
The National Bank of Ukraine in its letter of 29.09.2014, № 29-209/55222 reports that recently at the interbank market the cases of the intentional pressure on the foreign exchange rate by the unfair market participants and the actions aimed at the manipulation of the foreign currency market became more frequent. Such intended acts of some banks on goal-oriented exchange fluctuations destabilize the foreign exchange market, bring about economic dislocation and unreasonable obtaining of speculative profits that damage conscientious market participants and their clients.
Some banks for the purpose of secretion the true rate, whereby they carry out the transactions of currency purchase/sale for hryvnia at the interbank market, negotiate the sale or purchase of foreign currency by one rate of exchange, and carry out the transaction processing in the system of transaction confirmation by another rate of exchange. For the redistribution of received difference the parties sign a number of factitious deals on the exchange of one foreign currency for another and vice versa.
The specific features of this agreement are the implementation of such transactions without actual delivery of principal sum of convertible currency as well as the making of such transactions at the rate, which is significantly different from the actual exchange currency rate made at the world markets as of the time of making these agreements.
Besides, some bank, when the currency selling at the interbank market, require additionally the payment of a commission from the buyers' banks, which increases the actual expenditures of the buyer, due to that the real exchange currency rate for hryvnias is greatly overestimated.
In case of disclosure of similar facts, the regulator will classify these agreements as unfair and apply severe measures of impact to the banks, including revocation of the general license for foreign-exchange transactions.
The State service of mining supervision and industrial safety of Ukraine in its letter of 04.08.2014, №5960/0/8-02/6/14 mentioned that the officials, including experts on companies Health and Safety Matters, where the accident happened (occupational poisoning) – group or fatal, should complete additional training and safety knowledge assessment during a month, if the commission of inquiry established the violation fact of the requirements of the regulatory legal acts on the occupational safety and health.
This additional training can be conducted with the purpose to acquaint with the regulatory legal acts on the occupational safety and health in the form of seminars. The certain procedure for the safety knowledge assessment in case of additional training is not set by the current legislation.
