The Verkhovna Rada of Ukraine adopted the Law of Ukraine 'On prevention of financial disaster and arrangement of conditions for economic growth in Ukraine ' of 27.03.2014 № 1166-VII.
The Law comes into force gradually, and some provisions came into force on 1 April 2014. In particular, is implemented on a regular basis the basic rate of income tax at the level of 18% and VAT at the level of 20 %. Also, the law provides that up to1 October 2014 is subject to VAT at 0% rate export of certain cereals and industrial crops by agricultural companies producing of cereals and industrial crops grown on agricultural land - their own or constant used at the date of export.
Transactions of the supply of medicines and medical products will be subjects to VAT at 7% rate. Also, introduced tax on mandatory pension insurance at the rate of 0.5% in transactions of purchasing by firms and individuals foreign currency in non-cash or physical form.
Increased rates of:
- fees for use of radio frequency resource ;
- payment for use of mineral resources for mining, expanded range of taxpayers for the use of mineral resources;
- excise tax on new cars and motorcycles with engine of more than 0.5 liters; increased excise tax on motorcycles with engine of 0,5 l at the level of 0.06 euro per 1 cu cm;
- excise tax on automobile body.
Since 1 May will be increased rate of excise duty on beer and ethyl alcohol and other alcoholic distillates, alcoholic drinks - since 1 September 2014.
Since 1 July 2014 will be established the progressive scale of taxation of personal income tax of passive income (interest, excluding interest, the amount of which does not exceed 17 costs of living per year for the working person , dividends , interest, royalties, investment income ) at rate of 15% , 20 % and 25 % depending on monthly taxable income with the introduction of the taxpayer obligation to recalculate accrued (paid ) tax. Also, introduced personal income tax at rate of 15% (17%) of retirement benefits if their size exceeds 10 thousand UAH. The beginning of July will be marked with increase in the excise tax and the minimum excise obligations on tobacco products.
Law introduced indexation of normative monetary valuation to determine the base for taxation of fixed agricultural tax. This innovation will come into force on 1 January 2015.
The Ministry of Revenue and Duties of Ukraine in its letter of 26.02.2014 № 3737/6/99-99-18-03-01-15 reported that economic entities operating in the field of sales of goods, catering and services and in accordance with law using PPO should compulsory accept the payment cards for payment of goods sold (services provided) .
From the mandatory acceptance of payment cards are exonerated:
- enclosed eating places for the Armed Forces personnel and other military formations, students, pupils and teachers of technical secondary schools and general education institutions, industrial workers ;
- trading enterprises with a sales area up to 20 square meters (excepting filling stations);
- economic entities operating in settlements with a population less than 25 thousand people.
If a physical person - entrepreneur uses PPO , he is obliged to give buyers the opportunity to use payment cards.
The Ministry of Revenue and Duties of Ukraine in its letter of 25.06.2013 № 5539/6/99-99-17-03-03-15 informed that in redemption by the bank savings (deposit) nominee certificate the amount of deposit of physical persons is not subject to Personal Income Tax, including situation if a person has purchased mentioned certificate at the secondary market.
Savings (deposit) nominee certificate can be bought and sold between individuals. At the same time securities trader, including bank, is not involved in transactions of purchase and sale (transfer of rights on such certificates) or the implementation of settlements between individuals, thus do not take the functions of a tax agent. Investment income is taxed at the rate of 15% (17%) and declared by the seller.
The Ministry of Revenue and Duties of Ukraine in its letter of 02.04.2014 recalled about abidance by rules on goods transfer when choose 'green channel'.
Through 'green channel' is allowed to transfer:
1) belongings: two mobile phones , one video camera , one camera, two portable personal computers , sports equipment , jewellery, clothes, shoes that were in use, 500 ml of eau de toilette and / or 100 ml of perfume and other goods for personal use;
2) products whose total value does not exceed EUR 500 , weight - 50 kg (land ) and 1000 euros ( air);
3) cash currency of Ukraine and foreign currency in an amount not exceeding 10 000 euros (equivalent ) per person;
4 ) alcoholic beverages: vodka, brandy , whiskey in volume of 1 liter, wine - 2 liters, beer - 5 liters;
5) tobacco - 200 cigarettes or 50 cigars or 250 grams of tobacco ( or 250 grams of these products);
6) food for own needs on the amount not exceeding 200 euros:
- in the original container (intended for retail) - 1 pack or a total weight not more than 2 kg of each item;
- without packaging - up to 2 kg of each item;
- indivisible product ready for immediate use - 1 unit of each item;
7) drugs : not more than 5 packs of each item per person ( except containing narcotic or psychotropic substances) or not exceeding specified in the recipe, issued in the name of that person and stamped by the doctor and/or health care institution.
Violation of rules leads to the penalty of 100 non-taxable minimum of incomes of citizens (1700 UAH). In the goods, prohibited for import into the customs territory of Ukraine, are found, provided their confiscation.
The Ministry of Justice of Ukraine by its Order of 25.03.2014 № 563/5 approved amendments to the Procedure of notarial activity by notary officers of Ukraine.
Since 28 March 2014 the notary officer certifies deals on transfer of ownership of real estate and construction in progress, excluding inheritance and gifts, with a document confirming payment of personal income tax to the budget, calculated from the price specified in the contract but not less the appraised value of such real property determined by subject of valuation activities in accordance with the requirements of legal acts of property valuation and the document of the appraised value.
The National Bank of Ukraine by its Decree 'On the settlement of activities of financial institutions and conducting foreign exchange operations' of 28.03.2014 № 172 (hereinafter - Decree №172) supplemented and improved measures for providing balance in the monetary market.
The document provides the adoption of a new package of temporary measures for banks.
Measures, in particular, include:
- possibility to make foreign exchange transactions by banks;
- repeal of a ban on the purchase of foreign currency for investment by residents abroad and to cover part of insurance reserves by insurers;
- reduction up to three days ( from 01.04.2014 - up to two ) of term for transactions on purchasing foreign currency by banks on behalf of legal entities and natural persons - entrepreneurs, foreign missions. At the same time banks are exempted from the obligation to generate and transmit to the territorial control NBU registers on purchasing foreign currency;
- simplified the procedure for buying by bank from individuals cash in foreign currency , which now allows to carry out such transaction without presentation of identity card and without it copying.
Furthermore, some additional stabilization measures introduced, namely:
- set the maximum amount of currency sales to one individual within one business day in one banking institution in terms of not more than 15 000 UAH;
- cash transfers by individuals of foreign currency outside Ukraine at current exchange trade transactions should not exceed 150 000 UAH per month. Those restrictions do not concern the costs of medical treatment abroad, transportation of patients and certain other expenses;
- for residents permitted to carry repayment of borrowings ( financial aid ) in foreign currency by contracts, including signed with non-residents, not earlier specified in the contract term;
- over validity of Decree №172 banks should suspend the issuing of new savings ( deposit) certificates , and the repayment of previously issued perform exclusively by transferring funds to the certificate holder or its bearer.
Social Insurance Fund on Temporary Disability in its letter of 26.02.2014 № 06-32-459 reported that temporary disability benefits during spa treatment provided to an insured person in cases if the duration of annual leave enough for the treatment and transfer to spa facility and back.
Insured person, ordered directly from hospital to treatment in the spa facilities after illness or injury, temporary disability benefits is given for the period of staying in a sanatorium institution (including travel to and from).
Chernobyltsy I category are eligible for sick leave for the period of treatment in sanatoriums and specialized hospitals, taking into account travel time, with the payment of benefits regardless of who and at whose expense voucher issued. Such a guarantee is provided by paragraph 16 Art. 20 of the Law of Ukraine 'On the status and social protection of citizens affected by the Chernobyl Disaster' of 28.02.91 № 796 - XII.
Chernobyl I category are eligible for spa treatment at the expense of Social Insurance Fund on Temporary Disability during annual leave and recovering treatment in rehabilitation and recreational centers with getting sick leave for the whole period of the treatment and state social insurance benefits.
