Taxes
VAT
The Cabinet of Ministers of Ukraine by the Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated 12 January 2011, № 15” of 25.03.15, № 136 (hereinafter - Resolution № 136) (entered into force 31.03.15) extended till 01.01.17 the list of waste and scrap ferrous and non-ferrous metals, supply and import of which were exempted from VAT. These lists are approved by the Resolution of the Cabinet of Ministers of Ukraine of 12.01.11, № 15.
The supply, import and export of waste and scrap of ferrous and non-ferrous metals are exempted from VAT temporarily to 01.01.17. The lists of such waste and scrap are approved by the Cabinet of Ministers of Ukraine (p.23 of subsection 2 of p. XX of the Tax Code of Ukraine). The Law of Ukraine dated 31.07.14, № 1621-VII extended the effect of this benefit from 01.01.15 to 01.01.17 (previously the benefit was provided for only to 01.01.15).
The State Fiscal Service of Ukraine in its letter dated 07.04.2015, № 12082/7/99-99-19-03-02-17 explained the rules for the determination of base for the accrual of VAT liabilities when delivering the own products.
Thus, according to p. 188.1 of the Tax Code of Ukraine (hereinafter - TCU) the base for the taxation of supplies of goods / services is determined on the basis of their agreed cost (in the case of controlled transactions - not lower the usual price determined in accordance with Article 39 of the TCU) taking into account the national taxes and duties (except the duty on obligatory state pension insurance, which is chargeable on the cost of services of cellular mobile communications, value added tax and the excise tax on ethyl alcohol used by the manufacturers - business entities for production of medications, including blood components and made medicinal products from them (except medicinal products in the form of balsams and elixirs).
In this case, the base for the taxation of supplies of goods / services fixed asset purchase price of the goods / services, the base for the taxation of supplies of independently manufactured goods / services could not be lower than their production cost, and the taxation base for the noncurrent assets supply could not be lower than the book (residual) value according to the accounting, established at the beginning of the reporting (tax) period during which such operations are carried out (in case of the absence of accounting of noncurrent assets - based on the regular price).
The tax authorities indicated in their letter that the taxation base for the VAT of the taxation of supplies of independently manufactured goods / services could not be lower than their production cost determined in accordance with NAS 16.
According to p. 11 of NAS 16 “Expenses”, approved by the Ministry of Finance of Ukraine of 31 December 1999, № 318 (hereinafter – IAS 16), the production cost of goods (works, services) include:
- direct material expenses;
- direct labour payment expenses;
- other direct expenses;
- variable general production expenses and permanent distributed general production expenses
The State Fiscal Service of Ukraine considers that the amount of uncompleted capital investments increases the net book value of Non-current Assets in order to verify the criterion of right for receiving of automatic budgetary VAT refund (pp. 200.19.3 of the Tax Code of Ukraine, hereinafter - TCU). The tax authorities made this conclusion in the letter of the SFS of Ukraine “On the inclusion of the amount of uncompleted capital investments to the net book value of the non-current assets” of 06.03.15, № 4684/6/99-99-19-03-02-15 based on the Book-Keeping Regulations.
It should be noted that the right to the automatic budgetary refund is provided to the VAT payers that have the non-current assets, the net book value of which in three times at the balance sheet date according to the tax accounting exceeds the declared VAT amount to refund (pp. 200.19.3 of the TCU) (and, if the fulfillment of a set of conditions).
The State Fiscal Service of Ukraine in subcategory 101.28 ZIR of the SFS of Ukraine explained that the error in Annex Д7 to the VAT return should be corrected by the adjusted calculation (hereinafter - AC) whether it influenced on declaration cost indexes or not. The adjusting Annex Д7 is to be added to the AC.
In this situation it is possible when the index of SU is corrected in Annex Д7 - the share of using of input VAT between the taxable and non-taxable transactions, which has been defined for the previous year results and has been applied in the current year. This leads to the correction of indexes of Line 15 of the declarations for the reporting periods from the beginning of the current year by submitting AC for the relevant periods.
The State Fiscal Service of Ukraine confirmed its negative attitude towards error correction after cancellation of the registration of business entity by the VAT payer. Starting from the date of cancellation of VAT registration this entity is not entitled to submit the adjusted calculation (see Subcategory 132.05 ZIR of the SFS of Ukraine - zir.minrd.gov.ua).
The last chance to correct the errors of VAT is the adjusted calculation, which is submitted as an Annex to the last VAT return.
It is submitted for the last reporting period that begins on the first day of the period and the end is the day of registration cancellation. The period of limitation for the filing is during 20 (40) calendar days following the last calendar day of such period.
The State Fiscal Service of Ukraine reported that the amount of excess cost of self-cost of independently produced agricultural goods / services over the actual cost of their delivery should be reflected in VAT return 0110, on which the Budget settlements were made. And only tax liabilities raised in agricultural company – the subject of special taxation treatment related to the delivery of agricultural products (or services) within the contract price should be reflected in line 1.1 of VAT return 0121-0123 (see category 101.24 ZIR SFS of Ukraine).
The State Fiscal Service of Ukraine in its letter “On the compilation of the tax invoices by the subsidiaries at the daily basis” of 03.03.15, № 4436/6/99-99-19-03-02-15 explained the procedure for the tax invoice filling (hereinafter - TI) on the daily results by the subsidiaries, which were entitled to issue them.
The total amount of transactions, which is reflected in the sales receipts printed during the day, should be shown in such TI. This amount should correspond to the actual amount of revenues and the VAT amount reflected in the Z-report.
The state financial control notes here that the payer has the right in his/her sole discretion to decide about the number of TI compilation under such transactions, as follows:
or to compile the separate resulting TI on each registered cash register;
or to compile one resulting TI with total amount of goods delivery, made through all the cash registers of VAT payer (including through those that are in the subsidiaries or branches).
Previously the tax authorities insisted on the compilation of the resulting TI separately for each cash register (see category 101.19 ZIR).
The Income Tax
The President of Ukraine signed the Law of Ukraine “On Amendments to the Tax Code of Ukraine concerning the taxation of certain non-profit organizations” of 18.03.15, № 263-VIII (comes into force from the day following the day of its publication), which restored the non-profit status of condominiums, associations of owners of residential buildings and housing cooperatives. These organizations are not required to pay the income tax.
In addition, it is legislated that the non-profit organizations are not required to be reregistered in the Register of non-profit organizations and institutions.
The State Fiscal Service of Ukraine in its letter “On the tax exemption of labor union organization” of 31.03.15, № 6701/6/99-99-19-02-02-15 informed: the union organizations belong to the non-governmental organizations by their legal status, therefore they are the non-profit organizations according to the paras. 133.1.1 of the TCU. Of course, if they are registered in the Register of non-profit institutions and organizations (including before 01.01.15), and their goal is not the receiving and distribution of the profit.
Thus, the labor union organizations do not pay the income tax.
The State Fiscal Service of Ukraine in its letter “On the tax revaluation of fixed assets as of 31.12.2014” of 02.03.15, № 4307/6/99-99-19-02-02-15 reported that from 01.01.15 the fixed assets and intangible assets should be depreciated based on their book value, which was formed as of 31.12.14.
At the same time, under the tax rules before 01.01.15 the payer was entitled to annual indexation of fixed assets and the amount of accumulated depreciation on them on the indexing coefficient (determined from the rate of inflation).
So, in order of further accrual of depreciation, it is possible to take the book value of fixed assets increased at the expense of the conducted indexation as of 31.12.14.
Individual income tax
The State Fiscal Service of Ukraine in its letter “On the representation of f. № 1DF by individual-entrepreneur in case of income payment to self-employed person” of 19.03.15, № 625/2/99-99-17-02-02-10 noted that individual-entrepreneur is relevant to number of tax agents on income tax. Therefore, in the case of the income provision by him/her in favor of other individuals, including in favor of individual-entrepreneurs and those people who conduct an independent professional activity, he/she should reflect this in the tax calculation in f. № 1DF.
Single social contribution
The State Fiscal Service of Ukraine in its letter of 09.04.15, № 12518/7/99-99-17-03-01-17 provided the clarification concerning the rate reduction of the unified social tax. In these given calculations, neither number of employees with disabilities, nor their assessed payments are taken into the calculation of indicators according to which the right to the reduced rate is determined. Accordingly, under the mentioned approach, the indicators of the employees with disabilities do not influence on the size of the decreasing coefficient.
The Registrar for payment transactions
The State Fiscal Service of Ukraine in its letter “On the Procedure of payments in electronic commerce system” of 30.03.15 р. № 6556/6/99-99-22-07-03-15 reminded that when the paying for goods (services) by non-cash transfer via Internet (in e-commerce system) the seller is obliged to make such payments through the cash register and draw a cheque directly to the buyer.
In addition, the filing of the document in electronic form under the transaction, which is paid with a card, is only possible in a situation, when the goods (services) are delivered to the user. When there is not the actual service delivery, when it is impossible to determine the place of settlements of its payment by the payment cards Visa and MasterCard, the cash register is NOT used. It is relevant for the information and consulting services, application software and other programs, which are provided to consumers via the Internet.
The State Fiscal Service of Ukraine approved a new State Register of Cash Registers, which was approved by the order of 27.04.15, № 302 (hereinafter - the State Register of CR). The list of CR models is specified there, business entities can use these models in the implementation of settlement transactions. In contrast to the previous version of the State Register of CR, the updated one is supplemented by new models of cash registers. Therefore we recommend checking the existence of your CR model in its updated version.
Other taxes and duties
The State Fiscal Service of Ukraine in its letter “The problematic issues of the tax compromise, which received from the regional authorities of the SFS” of 23.02.15, № 5996/7/99-99-20-07-03-17 explained the problematic aspects of the tax compromise. As follows:
1) the adjusted calculation in accordance with the procedure of the tax compromise could be submitted for the tax periods in respect of which 1095 days have not passed from the day following the day of tax return submission for such period.
Besides, the compliance with the requirements of limitation period should be clarified at the time of submission of the adjusted calculation to achieve the tax compromise;
2) the tax compromise could not be applied in cases which are under the cassation appeal procedure, if the appellate decision has been made in favour of the controlling authority.
This is substantiated by the fact that the appellate court decision comes into force from the date of the its proclamation (in the case of written proceedings – after five days after sending of their copies to the persons, who are involved in the case);
3) the head of controlling authority should decide on the application of the tax compromise during the period from the fourth business day after submission of the statement on the compromise application to the tenth day by the payer;
4) the companies, which are in the process of liquidation, are also entitled to apply the tax compromise.
The State Fiscal Service of Ukraine in its letter “On the methodological guidelines on Application of the tax compromise” of 06.03.15, № 550/2/99-99-10-04-01-10, indicated that the declaration of intention to achieve the tax compromise would not be considered in the following cases:
the application of the tax compromise only to penal (financial) sanctions, including accrued for the late payment of a monetary liabilities under the Art. 126 of the TCU;
the availability of fact of the reconciliation of the amounts of the tax (monetary) liabilities;
the availability of inconsistent amounts of tax liabilities under the taxes and duties that are not provided for by p.p. 1, 7 of the Law of Ukraine “On Amendments to the Tax Code of Ukraine to clarify the features of the tax liabilities of the company income tax and the value added tax in the case of application of the tax compromise” of 25.12.14, № 63-VIII. In other words, the taxes and duties are different from VAT and income tax, for example, the single and excise taxes, tourist tax and others.
Let us recall that the mechanism of exemption of the taxpayers from liabilities under the condition of their voluntary declaring of the VAT liabilities and company income tax is introduced from 17.01.15.
The State Fiscal Service of Ukraine in its letter “On the real property tax, different from the plots of land [on the submission of statement on form № 20-OPP]” of 17.03.15, № 5616/6/66-99-17-04-01-15 explained: if the company’s property is the subject to the real property tax, different from the plots of land, then it should be registered in the tax agency at the location of the property and should submit the statement within 10 business days after its registration on Form № 20-OPP.
The date of such registration is considered to be the completion of the state registration procedure of ownership of the property, i.e. obtaining the appropriate extract.
In turn, it is not required to re-submit the statement on Form № 20-OPP regarding the real properties, which are recorded in the controlling authorities.
The State Fiscal Service of Ukraine in its explanation “On taxation of Compensation Payments” of 02.04.15 reported: the amount of average wages to mobilized employees, compensated to the employer from the state budget were not included in the taxable income of such employees.
Therefore, the income tax, the war tax and unified social contribution are not withheld from the mentioned compensation payments. Because the compensation payment procedure to the companies, institutions, organizations within the average wage of employees, called up for the military service during the mobilization for the special period, approved by the Cabinet of Ministers of 04.03.15, № 105, entered into force on 17.03.15, the exemption from taxation of compensation payments from the budget within the average wage of mobilized employees is applied starting from March.
The State Fiscal Service of Ukraine in its letter “On the taxation of reequipment of cargo transport vehicle into the passenger car” of 24.02.15, № 4478/5/99-99-21-05-16 noted that the date of occurrence of the tax liability was the date of issuing of the Document of Compliance with the requirements of road safety of the reequipped car.
The car owner pays the excise tax not later than the date of submission of the documents for registration (re-registration) of the car to the internal affairs bodies of Ukraine (where the receipt or payment order on the tax payment should be presented).
The Declaration of excise tax should be submitted every month not later than the 20th day of the following month to the controlling authority at the place of registration.
The tax is calculated at the rates specified in paragraphs 215.3.5.1 of the Tax Code of Ukraine. The excise tax should not be paid if the Document of Compliance with the requirements of road safety of the reequipped car is received before 01.01.15.
The State Fiscal Service of Ukraine by the letters “The Guide № 74/1 of tax benefits that are the losses of revenues of the budget as of 01.04.2015” of 27.03.15, № 74/1; “The Guide № 74/2 of the other tax benefits as of 01.04.2015” of 27.03.15, № 74/2 updated the guides of tax benefits that are the budget revenue losses and other tax benefits as of 01.04.15. In the updated guidelines, compared to the previous (as of 01.01.15), another code names are given to the benefits on the land payment, and the fee benefits for the first registration of the vehicle are excluded from them.
The State Fiscal Service of Ukraine in its letter “On the payers of environmental tax regarding the tenants of the gasoline generator” of 13.01.15, № 311/6/99-99-15-04-02-15 and the Ministry of Natural Resources of Ukraine in its letter “On the obtaining a permit on the emissions of pollutants into the atmospheric air by the stationary sources (gasoline generator)” of 25.12.14, № 7/3692-14 explained: the tenant should pay the eco-tax for the rented gasoline generator. Because, its work causes the emission into the atmosphere of pollutants, even when using rented stationary sources of pollution. This conclusion is based on the pp. 240.1.1 of the Tax Code of Ukraine.
We note that one should obtain the required permit to use the generator. Depending on the category of the polluting object, this permit should be obtained in the Ministry of Natural Resources in consultation with the Sanitary and Epidemiological Inspectorate, or through the authorization centers in regional and Kyiv City State Administrations in consultation with the local authorities of the Sanitary and Epidemiological Inspectorate.
Mobilization and ATO
The President of Ukraine signed the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on the improvement of some issues on mobilization and social protection of citizens of Ukraine, who are to be discharged from military service during the special period or due to the demobilization announcement” of 18.03.15, № 259-VIII. This Law enhances the social protection of demobilized employees.
As it is known, for the mobilized young people (including from service in the officer personnel), who are employed for the first time, are provided the additional guarantees in employment assistance. In addition, the first work place for this category of persons (i.e. able-bodied citizens aged from 15 to 28 years) after demobilization would be provided for a period not less than two years.
The work place (position) and the average wage would be reserved for the employees, who have received a wound (other damage to health) during the military service and those who receive the medical treatment in the health care providing institutions, have been captured or declared missing. It lasts until the day following the day of such people registration for military service in the district (city) military commissariat after their discharging from military service in case of treatment termination, return from captivity, their appearance after they have been declared missing or before the day of presuming them dead by the court.
The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Article 23 of the Law of Ukraine “On the mobilization preparation and mobilization” (to strengthen the protection of the rights of Disabled Children)”. The appropriate amendments are provided for by the bill № 2011.
The Parliament by this decision gave a respite from the mobilized service during the mobilization to the military reservists, who supported a disabled-child of the subgroup A aged up to 18 years.
Control and Responsibility
The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On licensing of economic activity types” of 02.03.15, № 222-VIII (enters into force in three months after its publication day).
This law reduced the number of licensed types of State economic activity. The documents for a license obtaining may be electronically submitted.
The law clearly defined reasons for dismissing the application for a license without prejudice. The license for the implementation of licensed economic activity type would be in electronic form. That is the entry for the decision of the issuance of licenses by the licensing authority to issue the licenses to this economic entity would be made in the Unified State Register of Legal Entities and individuals – entrepreneurs. Certainly, the license applicant can get the license or a copy of it in hard copy at his/her request.
The licenses are to be issued for an unlimited period. Also, the re-licensing is free of charge.
The Ministry of Finance of Ukraine issued the Order “On approval of the Procedure of data validation specified in the declaration of property, incomes, expenses and financial liabilities” of 13.03.15, № 333 (enters into force after its official publication).
This document defines a mechanism of data validation specified in the declaration of property, incomes, expenses and financial liabilities.
The authority of the State Fiscal Service of Ukraine would conduct the mentioned above validation at the place of residence of the declarant.
The information on income, property, vehicles, money in bank accounts and other financial institutions, securities, contributions to the authorized capital stock of legal entities and financial liabilities would be verified.
If the disagreements between these data and the available tax information would be discovered, the state financial control would inform the declarant in written form and require the written explanations and / or copies of confirmatory documents. They should be given not later than on the fifteenth working day from the day of receipt.
In case of unreliability the taxmen would inform the specifically authorized entities in Anti-Corruption Enforcement and the head of the agency where the declarant works. This would be done within three days from the date of registration conclusion.
Also, the appropriate message would be sent to the Prosecution authorities, the special organized crime activity subdivision of the Ministry of Internal Affairs of Ukraine, bodies of the National Anti-Corruption Bureau of Ukraine (unless otherwise provided by the Law).
The Ministry of Ecology and Natural Resources of Ukraine by its Order of 16.03.2015, № 78 approved the Procedure of maintaining of government accounting of water use.
The purpose of maintaining of government accounting of water use is to provide state water cadastre making under the section “Water use”, and also the data classification on the collection and use of water, wastewater discharge and polluting substances, the presence of water recycling systems and their capacity, on the existing wastewater treatment systems and their effectiveness.
The government water agency organizes the maintaining of government accounting of water use.
The maintaining of government accounting of water use is carried out by submitting to the water users of water use reports in the form № 2ТП- water industry (annual) (hereinafter - Report). The reports are submitted to the government water agency through specialized companies, institutions and organizations that belong to its sphere of management, which are the authorised workers of the state water cadastre making, at the place of water use. The report is based on primary accounting data of water use according to the terms of measuring instruments, measurement results of water quality indices (at least once per quarter), which are submitted together with the report to the organizations that belong to the management of the government water agency. In case of absence of measuring equipment, the report should be made under the technological data (using indirect methods of accounting).
The information contained in the report is the primary data of water user and his/her water management activities.
The reporting period is the calendar year.
Labour and Salaries
The Ministry of Social Policy of Ukraine in its letter “On leaves granting for work in the radioactive contamination zone” of 23.03.15, № 279/20/112-15 explained: workers reserve the right to use leave days actually worked time before 01.01.15 in the amplified radiological monitoring zone (the so-called fourth zone). In addition, the payment of part of such vacation is compensated from the state budget as previously.
We remind para. 4 of part 1 of Art.47 of the Law of Ukraine “On the status and social protection of citizens suffered from the Chernobyl disaster” of 28.02.91 № 796-XII guarantees workers of amplified radiological monitoring zone 30 calendar days of annual leave in proportion to time worked there. But concept of the amplified radiological monitoring zone has been seized under the legislation since 01.01.15.
The Ministry of Social Policy of Ukraine in its letter “On assistance for temporary disability due to illness or injury” of 12.03.15, № 170/18/99-15 states: the first five days of temporary disability due to illness or injury not related to an accident at work are paid to the insured person with 2 years of insurance period in the amount of 60% of average salary. Starting from the sixth day of disability the benefit is paid in the amount of 50% of average wage.
In this case, 60% and 50% and an appropriate amount of working (calendar) days should be noted on back side of work incapacity certificate in Section “Intended aid”.
The Ministry of Social Policy of Ukraine in its letter “On the grounds of dismissal of workers at the initiative of the owner or authorized body due to the need of actions to mobilize, for the special period” of 18.03.15, № 69/06/186-15 reminded about the exception for mobilized employer-individual.
According to the general rules the owner (authorized body) should completely pay off with the employee and give the employment book on the day of the dismissal - Art.47 of the Labour Code of Ukraine. But experts of the Ministry of Social Policy reminded about the exception for mobilized employer-individual: he is allowed to perform the specified obligations within one month after demobilization (fines are not applicable in this case) (see Letter from the Ministry of Social Policy of Ukraine “On the grounds of dismissal of workers at the initiative of the owner or authorized body due to the need for of actions to mobilize, for the special period” of 18.03.15, № 69/06 / 186-15).
In addition, it is stated in the letter that there are no any obligations to give notice when the dismissal of employees due to the call or mobilization of owner-individual for special period.
Accounting and Reporting
The Cabinet of Ministers of Ukraine by the Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated 26 January 2011, № 59” of 08.04.15, № 173 adjusted the Standard regulations on accounting department of the budgetary establishment, approved by the Cabinet of Ministers of 26.01.11, № 59 (hereinafter - the Standard regulation). There are several important changes.
In particular, to the satisfaction of requirements of the Law of Ukraine “On Amendments to the Budget Code of Ukraine on the reform of inter-budget relations” of 28.12.14, № 79-VIII (hereinafter - the Law № 79) the Standard regulation got rid of all references on the obligation to coordinate the appointment and dismissal of chief accountant of the budgetary institutions with the Treasury.
Also, the requirements for the professional qualification of the head of the accounting department of the budgetary institution are removed from the Standard regulation. Instead, under such requirements now the document refers to the Guide of the typical professional and qualification characteristics of positions of government staff and the Guide of qualification characteristics of worker professions.
The Ministry of Finance of Ukraine in its letter “On the application of certain requirements of national accounting standards in the public sector” of 07.04.15, № 31-11420-07-5/12145 in connection with the entry into force of the national accounting standards in the public sector (hereinafter – the NAS) 121 “Fixed Assets” explained that the liquidation cost should to be determined for the item of fixed assets (hereinafter – FA), which residual value was equal to zero, but it to be used.
That is, when it is impossible or makes no sense to determine the fair value for the item of FA with zero residual value, its liquidity is to be established. The initial value of the item of FA is increased on the liquidity amount, and the depreciation amount is equal to zero. The liquidity is determined by the commission of the budget institution when the FA implementation or when its residual value is zero.
Also, the Ministry noted: the government employees are not required to revalue the FA. The institution may use this right if the residual value of the item of FA is significantly different from its fair (i.e. more than 10%). Then the revalue is conducted on the annual balance sheet date in agreement with the body authorized to manage the property.
Financial Markets
The National Bank of Ukraine by the NBU Board Resolution “On Amendments to Certain legislative acts of the National Bank of Ukraine” of 14.04.15, № 248 adjusted the foreign currency sale regulations to the legal entities.
The Bank is not entitled to execute an order of the resident-customer (excluding individuals) to buy foreign currency, if the person has the foreign currency on the current and deposit accounts in this and / or other banks in the amount of USD 10 thousand (equivalent) or more. The certain costs are not taken into account in this amount determining.
Therefore, the National Bank expanded the list of cases when the foreign currency, which is placed on current and deposit accounts of the resident (excluding individuals), is not taken into account to determine the amount of funds, when its reaching the right to buy the currency would be limited.
At the same time, the bank are entitled to execute their orders on the exchange of foreign currency of the first group of the Classifier to the foreign currency of the second group of the Classifier to help the customers meeting the commitments.
Also, if the customer planned to buy the currency and the information about the transaction that included in the register by the bank (which was submitted to the NBU), so this transaction could be conducted by the customer at the expense of his/her own (non bought) funds in foreign currency within the agreed amount of purchase without the reintroduction of the information of the funds transfer into the register. But it is possible, if the statement of the disconfirmation of the possibility of the transaction implementation was not received from the NBU after the client transaction.
The National Bank of Ukraine by the NBU Board Resolution “On establishing a procedure for transactions purchase by individuals - residents of foreign cash to repay credits in foreign currency” of 09.04.15, № 220 established a procedure for transactions purchase by individuals - residents of foreign cash to repay credits in foreign currency, obtained by them from authorized banks (hereinafter - Procedure).
The purchasing by individuals - residents of foreign cash to repay credits in foreign currency is carried out according to the Instruction on the organization and implementation of foreign exchange transactions on the territory of Ukraine approved by the NBU of 12.12.02, № 502 (hereinafter - Instruction № 502). The pension fee is not paid in the case of such transactions, including payment of interest accrued for the use of foreign exchange credit.
The individual can buy the cash foreign currency only in the amount of its foreign exchange obligations under the credit agreement. And the banks were obliged to control the compliance by the individual-resident of the intended use of purchased cash foreign currency with the performance of own obligations under the credit agreement concluded with an authorized bank.
The information that the foreign exchange is bought to repay the credit, should be additionally indicated in the receipt of the currency exchange transaction, and also the number and date of the relevant credit agreement, which is the basis for the purchase of foreign currency.
It is important that banks, financial institutions are prohibited to refuse in the implementation of foreign exchange transactions if they have appropriate funds and reverse transactions.
The National Bank of Ukraine in its letter “Clarification on the implementation of mandatory financial monitoring” of 15.04.15, № 25-02002/24990 explained to the banks that the actual delivery of goods into the customs territory of Ukraine was to be considered the actions related to the providing into the customs territory of Ukraine of delivery of goods that were the movable things within the meaning of the Customs Code of Ukraine (hereinafter - CCU).
The goods are any movable things including those on which the movable thing regime is spread (other than commercial purpose vehicles), currency values, cultural values, and electricity that is moved by transmission lines (p. 57 Art 4 of the CCU). The foreign goods are considered those that are not Ukrainian according to the p. 61 of Art 4 of the CCU, or if they lost their custom status of Ukrainian goods.
It is to be recalled that the financial transaction is not the subject to the financial monitoring. Namely the financial transaction of funds transfer abroad under agreements (contracts), which provide for the actual delivery of goods into the customs territory of Ukraine, in an amount that equals or exceeds UAH 150 thousand (or equivalent amount in foreign currency, banking metals and other assets). The mentioned-above rule is established by the p.7 of ch.1 of Art 15 of the Law of Ukraine “On prevention of legalization (laundering) of incomes obtained by criminal means, terrorist financing and financing of weapons of mass destruction spread” of 14.10.14 р., № 1702-VII.
Fee Policy
The Ministry of Finance of Ukraine announced a new form of the declaration of the maximum retail prices of excisable goods (products), as well as procedure of its preparation and submission. All this is approved by order of the Ministry of Finance of Ukraine “On Approval of the Declaration form on the maximum retail prices of excisable goods (products), the Procedure of preparation and submission of the declaration of the maximum retail prices of excisable goods (products)” of 25.03.15, № 359.
It should be reminded. This declaration should be submitted by manufacturers and importers of tobacco products in electronic form to the SFS of Ukraine not later than 10th day and 25th day of month.
The information about established maximum retail prices of domestic and imported tobacco products as well as the date on which they become effective should be included in the declaration. Such prices are marked on cigarettes packaging together with the date of their production.
The other things
The President of Ukraine signed the Law of Ukraine “On Amendments to Certain Laws of Ukraine regarding the voluntary activity” of 05.03.15, № 246-VIII, which regulated the legal aspect of volunteers’ activities.
So, the teenagers aged from 14 to 18 years can join the ranks of volunteers, but with the consent of one of the parents (adoptive parents), foster parents or guardians.
Also, it is established in which cases the volunteers are required to conclude the agreements on the carrying out of voluntary activities with organizations and institutions, which involve the volunteers in their activities. In particular, the foreigners and persons without citizenship engage in voluntary activities exclusively through such organizations.
The social benefits are also established for the volunteers. If a volunteer became disabled during the voluntary assistance in the ATO area, battle action and armed conflict, depending on the degree of disability, he/she should be paid the single financial assistance in the following amounts:
I degree of disability – 250 living minimum wages for able-bodied persons (hereinafter – LMW) (currently – UAH 304 500);
II degree of disability – 200 LMW (UAH 243 600);
III degree of disability – 150 LMW (UAH 191 700).
In the event of the death of a volunteer during the voluntary assistance, his/her family should be paid 500 LMW (UAH 609 000).
Also, the voluntary activity includes the following assistance:
the citizens suffered, in particular, due to the special period, legal regimes of emergency state or martial law, the ATO, as a result of social conflicts, accidents as well as victims of crime, refugees, internally displaced people;
Armed Forces of Ukraine, other military units, law enforcement authorities, State government bodies during the special period, legal regimes of emergency state or martial law, the ATO.
The Cabinet of Ministers of Ukraine in the Resolution “On the Higher education documents of (Diploma degrees) of state standard” of 31.03.15, № 193 regulated the list of information that should be indicated on the Higher education documents (Diploma degrees) of state standard.
The Сabinet resolved additionally:
the marginal cost of production of the higher education document of the state standard should not be more than two non-taxable minimum incomes of the population (34 UAH);
the previously issued higher education documents (Diploma degrees) of state standard and appendixes to them are valid and are not to be exchanged;
the information provided for the bachelor’s degree and master’s degree diplomas, should be indicated in the specialist’s degree diploma, which would be issued in the transition period due to the entry into force of the Law of Ukraine “On higher education” of 01.07.14, № 1556-VII (hereinafter - the Higher Education Law). The data provided for the junior bachelor’s degree diploma should likewise be indicated in the specialist’s degree diploma.
Last year, the Parliament adopted the Higher Education Law, which, in particular, introduced the new levels and degrees of higher education.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated 1 March 2010, № 243 and dated 17 October 2011, № 1056” of 08.04.15, № 231 expanded the set of measures oriented to effective use of energy resources and energy conservation.
It is planned among such events to encourage condominium and housing associations to conduct energy-efficient events: to compensate the amount of credit raised for acquisition of: equipment and materials for arrangement of individual heating units; water metering units and heat energy; energy efficient triple glazed windows for public places; materials for external wall insulation etc.
40% of credit amount (but not more than UAH 10 000) should be compensated per apartment of a block of flats for one credit contract.
Also people would be encouraged - by means of compensation of a credit amount part (20%, but not more than UAH 5000 for one credit contract), raised for the acquisition of boilers using any types of fuel and energy (except for gas).
It would be also compensated a credit part for the acquisition of:
- radiators with thermostats; energy efficient triple glazed windows; water meters; materials for external wall insulation etc. by residents of detached houses;
- radiators with thermostats; energy efficient triple glazed windows; water meters by residents of apartment buildings.
These residents would be compensated 30% of credit amount, but not more than UAH 10 000 for one credit contract.
Now the energy conservation measures are in the direction of budgetary funds for equipping utility companies in sphere of manufacture of heat energy by metering equipment of the actual heat supply, as well as compensation for the population of the credit part for the acquisition of boilers (other than powered by natural gas).
The Cabinet of Ministers of Ukraine by the Resolution “On the services provision of the state registration of rights to immovable property and encumbrances thereon in shortened timelines” of 08.04.15, № 190 determined that it was possible to register the rights to immovable property under the compact procedure for the additional charges.
In particular, the Government established the short term of services of state registration of rights to immovable property - 3 working days (usual - 5), and state registration with the issuance of ownership certificate on it and also the state registration of ownership of the company as a single property complex could be conducted for 5 working days (usually – to 14).
The price for this short term should be double size of the relevant administration fee. The short term of the state registration of encumbrances is 2 hours from the time of the statement registration. The payment is established in the amount of the admin fee for the state registration of the encumbrances. The information from the State Register of rights to immovable property in paper form could be provided just in an hour from the statement registration for the double payment.
The Cabinet of Ministers of Ukraine by the Resolution “Some issue of simplification of the procedure of providing of administrative services in the field of the State Registration of rights on Real Property and their fixed charge” of 18.03.15, № 137 brought its regulations into conformity with the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine concerning the Business Environment Simplification Task”.
Thus, the public officials of local government authorities, the managers of centers providing administrative services and Notaries Public are entitled to receive and issue the documents when the maintaining of the State Register of rights on Real Property (hereinafter - register).
The issuance of registration documents, in hard or soft format directly in the registration authorities or via mail (incl. via email), is also provided for.
In addition, the government officials equated the legal force of electronic and paper form of the decision of the State Register, as well as certificate of title to real property.
The Verkhovna Rada of Ukraine simplified the procedure of state registration of legal entities reorganization by accession, transformation, merger and division by the Law of Ukraine “On Amendments to the Law of Ukraine “On state registration of legal entities and individuals – entrepreneurs” on the simplification of termination of legal entities by merger, accession, division, transformation (reorganization)” of 07.04.15, № 285-VIII (effective of 29.04.15).
In particular, unclosed branches, representative offices or other separate subdivisions will not hinder the reorganization of legal entity. Except for the state registration of legal entity division. However, if the future of these subdivisions is determined in divided balance sheet when the legal entity division, the state registrar will make entry about their affiliation to legal entity - assignee in the Unified State Register of Legal Entities and individuals – entrepreneurs.
As a result of accession, transformation and merger is only one assignee. It is he who receives mentioned separate subdivisions (if any exist). Therefore, the legal entity, which terminates because of one of these methods of reorganization, should be entitled not to close such subdivisions. But in this case the state registrar should inform the assignee about them.
The State Registration Service of Ukraine in its letter of 06.04.15, № 32/06-15-15 “On some issues related to the entry into force of the Law of Ukraine of 12 February 2015, № 191-VIII “On Amendments to Certain Legislative acts of Ukraine on the Business Environment Simplification Task (deregulation)” explained: the differentiated administrative fee for state registration of rights to immovable property and their encumbrances was implemented from 05.04.15.
The fee size depends on the following factors:
- the area of the real estate property, the right on which claimed before the state registration;
- the status of the claimant (individual or legal entity).
The administrative fee size is determined as a percentage of the minimum wage.
These amendments are made to the Law of Ukraine “On State Registration of Rights to Immovable Property and Their Encumbrances” of 01.07.04, № 1952-IV (hereinafter - the Law № 1952) by the Law of Ukraine of 12.02.15, № 191-VIII, which entered into force on 05.04.15.
It should be added that before 05.04.15 the Article 29 of the Law № 1952 provided for the collection of the state duty for such a state registration.
