The Verkhovna Rada of Ukraine has postponed the use of mandatory cash registers for sole proprietors until January 1, 2022.
Rada has considered and supported the draft law No. 4439-д on the deferral of mandatory cash registers (PTR or SPTR) for sole proprietors who are payers of the single tax of the second – fourth groups and whose income during the calendar year does not exceed the income limit set by the Tax Committee for the first group of single tax payers, except for those operating in areas with significant risks of tax evasion.
The document extends for a year, until January 1, 2022, the application of reduced financial sanctions for violations by business entities of certain requirements of the law on the use of PTR (SPTR) during settlement operations. It also cancels penalties for non-compliance of cash at the place of settlement of the amount of funds specified in the daily report of PTR, and for the lack of prior programming of goods in the PTR (SPTR). The approved document excludes the rules on the application of the mechanism of compensation to buyers (consumers) for complaints about violations of the established procedure for settlement operations of part of the amount of penalties (financial sanctions) applied to business entities. The law determines the maximum amount of income, the excess of which is one of the conditions for the simplified taxation system of the relevant groups of single tax payers, in accordance with the statutory minimum wage, which will take into account changes in the economic situation.
The Ministry of Finance of Ukraine has presented the Concept of electronic audit (e-audit) for taxpayers. Its introduction involves three waves covering the period from 2023 to 2027.
The purpose of the concept is to move to qualitatively new level of control and verification work.
Electronic audit of taxpayers is conducted using standard audit file (SAF-T). in such form the information is submitted to the controlling body. After receiving the file, the software performs data analysis according to the established risk criteria. Then, before the audit, the received information may be clarified or explained. Due to this the taxpayers can personally correct identified errors applying reduced sanctions. Then the results are subject to tax audit.
It is expected, that a systematic analysis of information submitted by the taxpayer to the controlling body will create addition opportunities to identify typical violations in the tax field to resolve them as quickly as possible. Automation of tax audit will not only speed up the work, but also reduce the impact of human factor, as well as improve the quality of tax control. E-audit can reduce the burden on the taxpayers and controlling body.
The presentation of the Concept can be found on the Ministry of Finance website.
The Ministry of Finance of Ukraine by Order No. 649 of October 29, 2020 has approved changes to the form of the Tax return on corporate income tax (hereinafter – the tax return).
In the tax return’s form there are positions which allow submission of the tax return by:
- legal entities and sole proprietors who have chosen the simplified system of taxation, natural persons who carry out independent professional activity, who are payers of income tax when paying income (profits) to a non-resident with their source of origin from Ukraine;
- foreign companies;
- legal entities that manage assets related to the activities of mutual investment institutions formed without the status of a legal entity, the assets of which are managed by such persons.
The following annexes to the tax return are also set out in the new edition:
- annex TN to line 23 TN of the tax return;
- annex DI to line 03 DI of the tax return;
- annex AM to line 1.2.1 of Annex DI to line 03 DI of the tax return.
The declaration form is supplemented with annexes, which will reflect information about controlled foreign companies and the calculation of income tax of the controlled foreign company:
- annex CIC to line 06.1 CIC of the tax return;
- annex CIC-C to line 02 CIC-C of the annex CIC to line 06.1 CIC of the tax return;
- annex CIC-TC to the annex CIC to line 06.1 CIC of the tax return;
- annex CIC-CP to lines 1.2 CIC-CP, 1.3 CIC-CP of the annex CIC-C to line 02 CIC-C of the annex CIC to line 06.1 CIC of the tax return.
Point changes also took place in the annex to the TR to line 16 of the TR; appendix EC to lines 26-29, 31-33, 35; annex IT to the tax return.
The order will enter into force on the day of its official publication.
The Cabinet of Ministers of Ukraine by Resolution No. 1171 of November 25, 2020 has decided to resume for the period from November 1, 2020 to December 31, 2020 the payment of child benefits to sole proprietors of the first and second groups.
This resolution came into force on November 28, and applies from November 1, 2020.
Assistance is granted to sole proprietors of the first and second groups, who:
- paid a unified social tax (hereinafter – UST) for all months of 2019 (all months after state registration, if registered in 2019);
- registered as sole proprietors in January – March 2020;
- receive an old-age pension, or are persons with disabilities, or have reached the age established by Art. 26 of the Law of Ukraine “On Compulsory State Pension Insurance”, and receive a pension or social assistance in accordance with the law and are exempt from paying UST;
- by March 2020 (inclusive) switched to a single tax of the first or second group.
The assistance is granted to each child under 10, including the subsistence level established for children of the relevant age groups as of January 1, 2020.
The resolution stipulates that SPs who received assistance in May-August 2020 will continue to be paid without submitting a new application and the necessary documents. Such persons will be paid in December 2020 for November and December.
Persons who have not previously applied for this assistance must submit an application and documents by December 15, 2020. Assistance will also be granted for November and December 2020. You can submit the application and the necessary documents online by filling out the electronic form on the website of the State Enterprise “Information and Computing Center of the Ministry of Social Policy of Ukraine”.
The National Bank of Ukraine by Resolution of the Board “On Amendments to Certain Legal Acts of the National Bank of Ukraine” No. 150 of November 30, 2020 has revised certain requirements for assessing the financial condition of debtors – local authorities when calculating the amount of credit risk.
In particular, banks can determine the class of the borrower of the municipality – the issuer of securities on the basis of its credit rating. In the absence of such a rating on hryvnia securities, banks have the right to determine the class of the borrower on the basis of the credit rating of Ukraine on an international scale, reduced by one level.
At the same time, the lower limit of the range of the credit risk calculation component, which reflects the level of losses due to the borrower's default (LGD), for government and municipal securities was reduced to 0.6.
The regulator has also increased the values of the ratios with which municipal bonds are accepted as collateral when calculating credit risk.
Such changes will contribute to more active credit support by banks to local authorities, development of regional infrastructure projects and the securities market in general and are a continuation of the steps taken by the National Bank to restore lending and support the economy.
In addition, until January 1, 2022, banks have extended the permission not to apply the requirement for the existence of a collateral insurance contract when determining the acceptability of collateral.
The resolution came into force on December 2, 2020.
The Verkhovna Rada of Ukraine has adopted the Law “On Amendments to Certain Legislative Acts of Ukraine Concerning Social Protection of the Population in the Period of Quarantine Related to the Prevention and Spread of Coronavirus Disease (COVID-19)”. The draft law was registered under No. 3486.
The law amends the Law of Ukraine “On Employment”, the Law of Ukraine “On Compulsory State Social Insurance in Case of Unemployment” and “On the Fundamentals of Social Protection of Persons with Disabilities in Ukraine”, which are aimed at providing social protection to the affected population from the effects of the spread of coronavirus disease (COVID-19).
Law, in particular, has:
- established the deadlines for employers to notify the relevant territorial employment center of the planned mass layoffs have been aligned;
- settled the issue of providing vouchers to persons discharged from military service after participating in the anti-terrorist operation/joint forces operation without the condition of disability;
- allowed heads of family farms to pay a single social contribution for themselves and for members of the family farm, etc.
The law stipulates that funds received by the state budget from the payment of administrative and economic sanctions and fines may be used by the Social Protection Fund for the Disabled to provide employers with compensation defined in the Law of Ukraine “On Employment”, which provides employment for persons with disabilities which were listed as unemployed in the employment centers.
The Verkhovna Rada of Ukraine has adopted the Law “On Amendments to Certain Legislative Acts of Ukraine Concerning the Strengthening of Liability for Offenses in the Sphere of Sale of Electronic Cigarettes and Liquids Used in Electronic Cigarettes to Children”. The draft law was registered under No. 3628.
The law provides from January 1, 2021 to introduce administrative liability for violating the rules of trade in e-cigarettes and liquids used in e-cigarettes, to increase liability for the sale of excisable goods by increasing the fine from 400 to 800 tax-free minimum incomes.
Relevant changes have been made to Art. 156 “Violation of the rules of trade in beer, alcoholic, soft drinks, tobacco products, e-cigarettes and liquids used in e-cigarettes, devices for consuming tobacco products without burning them” of the Code of Administrative Offenses of Ukraine.
The amendments establish that the actions provided for in Part 1 or Part 3 of this Article, committed by a person who during the year was subject to administrative penalties for the same violations, entail a fine of 800 to 1,400 non-taxable minimum incomes with confiscation of trade items and proceeds from the sale of trade items.
The law also provides for the laws of Ukraine “On State Regulation of Production and Circulation of Ethyl Alcohol, Cognac and Fruit, Alcoholic Beverages, Tobacco Products and Fuel” and “On measures to Prevent and Reduce the Use of Tobacco Products and their Harmful Effects on Public Health” the terms “electronic cigarette” and “liquids used in electronic cigarettes” in the meanings given in the Tax Code of Ukraine, and to introduce restrictions, including for minors, on the circulation of electronic cigarettes and liquids used in electronic cigarettes.
