Legislation overview (November 2015)

Legislation overview (November 2015)

Taxes

VAT

The State Fiscal Service of Ukraine in its letter “On taxation of VAT transactions on funds transfer in the form of guarantee payment under the lease contract” of 28.10.15, № 22839/6/99-99-19-03-02-15 explained how guarantee payments received under the lease contract influenced on VAT accounting of lessor:

• if guarantee payment is credited in payment of lease (rent) payments, such payment amount increases the amount of VAT taxation base of the lessor;
• when the guarantee payment only enforces the obligations and is to be returned to the tenant at the end of the term of the contract, the amount of such payment does not increase the tax base of the lessor.

At the same time controllers note: in case of conclusion of additional agreement to the lease contract under the terms of which it is to be changed the direction of using of previously obtained guarantee payment, which at first enforced the obligations under the contract, and then directed to the payment of lease (rent) payments, the lessor should charge tax liabilities on the amount of received guarantee payments.

The tax invoice under such transaction should be drawn up on the date of signing of additional agreement. It is the basis to form a tax credit of tenant subject to its proper execution and registration in URTI.

The State Fiscal Service of Ukraine by its letter “On the procedure of VAT accrual when depreciation of damaged product” of 27.10.15, № 22542/6/99-99-19-03-02-15 reported that remains of product that the company recognized unsuitable for realization and sent to be recycled, should not be the subject under VAT taxation since such a transaction should not be considered as the goods supply.

At the same time such remains include the cost of the new products when the manufacture of which they were used. So, damaged goods which sent to be recycled should be considered as used in economic activity. So, the mechanism of accrual of “compensative” tax liabilities from para. 198.5 of the Tax Code of Ukraine does not work in this case.

The State Fiscal Service of Ukraine by its letter “On the procedure of VAT accrual when depreciation of damaged product” of 27.10.15, № 22542/6/99-99-19-03-02-15 reported that remains of product that the company recognized unsuitable for realization and sent to be recycled, should not be the subject under VAT taxation since such a transaction should not be considered as the goods supply.

At the same time such remains include the cost of the new products when the manufacture of which they were used. So, damaged goods which sent to be recycled should be considered as used in economic activity. So, the mechanism of accrual of “compensative” tax liabilities from para. 198.5 of the Tax Code of Ukraine does not work in this case.

The State Fiscal Service of Ukraine in its letter “On inclusion of adjustments calculation to tax invoices to the tax liabilities and tax credit” of 27.10.15, № 22541/6/99-99-19-03-02-15 supported tax reduction of tax liabilities by the supplier in the period of drafting of adjustments calculation, associated with a decrease in amount of compensation (despite that it registered next month, but in compliance with the 15-day period). Thus, officials denied the response, which appeared in October in category 101.23 ZIR. It should be reminded, that controllers in that response approved the reflection of adjustments calculation only during its registration in the Unified Register of tax invoices.

The State Fiscal Service of Ukraine in its letter “On the procedure of imposition of VAT transactions on assignment of receivables according to the factoring contract” of 05.11.15, № 23655/6/99-99-19-03-02-15 reported that transactions on assignment of receivables by the taxpayer against the debtor in favor of another taxpayer (factor) according to a factoring contract to be not the subject to VAT.

This conclusion follows from the fact that according to the sub-sec.196.1.5 of TCU factoring transactions are not the subject to VAT, if their object is the foreign currency valuables, securities, including compensating papers (certificates), investment certificates, mortgage certificates with fixed income, transactions of assignment of receivables under provided credits (loans) with mortgage, housing checks land bonds and derivatives.

It should be reminded that according to factoring contract (financing for assignment of the receivables) one party (factor) transfers or undertakes to transfer the funds at the disposal of the other party (client) for payment (in any manner provided by the contract), and the client assents or undertakes its assignment of receivables in favor of the factor to a third party (the debtor).

The State Fiscal Service of Ukraine by its letter “On charging penalties on the amount of declared balance of the budgetary compensation of previous reporting periods before 1 February 2015” of 09.11.15, № 23832/6/ 99-99-19-03-02-15 clarified the issue of legality of charging penalties on the amount of “technical” tax debt of VAT that arose in the integrated card of taxpayer (hereinafter - ICT) due to improper filling of column 4 of Table 1 of Annex 2 to the VAT declaration. It should be reminded that Annex D2 to be filled for the reporting periods February − June 2015.

In this column there were recorded outstanding amounts of VAT which were declared to the budget compensation for the reporting periods before 1 February 2015 on account of reducing of tax liabilities with VAT of subsequent periods. These amounts were transferred to the accounts of ICT.

So, if this figure was filled in incorrectly (the VAT amounts, which were not taken into account in ICT, were indicated there), “technical” tax debt of VAT arose for the taxpayer. According to its economic content it does not meet the definition of tax debt within the meaning of the Tax Code of Ukraine (hereinafter − TCU).

The state financial control explained that such a penalty which was accrued for the amount of the tax debt arose due to incorrect filling in of Annex D2 to the VAT declaration by the taxpayer should be considered to be accrued illegally and to be subjected to reversal by the decision of the supervisory authority at the registration place of the taxpayer.

According to the sub-para.129.1.1 of TCU (which was in force before 01.09.15) the penalty was accrued on the amount of the tax debt after the expiry of maturity dates of agreed monetary liabilities determined by the TCU.

The tax debt is the sum of agreed monetary liabilities (including penalties, if available) but not paid by the taxpayer within the period prescribed by TCU and penalty accrued on the amount of such monetary liabilities (sub-para.14.1.175 of TCU).

The State Fiscal Service of Ukraine in its letter “On procedure of formation of VAT credit” of 06.11.15, № 23731/6/99-99-19-03-02-15  noted that tax invoice (hereinafter - TI) to be considered to be drawn up with violations of the procedure of filling in of TI, if the name of the person who drew it up and the digital signature (hereinafter − DS) of the person who registered this TI in the Unified Register of tax invoices (hereinafter − URTI) belong to different people.

The state financial control noted that TI drawn up with violations of the established procedure of TI did not entitle the buyer to a tax credit.

We believe that such an opinion is controversial, because according to para. 201.10 of the Tax Code of Ukraine (hereinafter - TCU) the following reasons do not entitle the buyer to a tax credit:

• the absence of the fact of registration of TI in URTI by the seller;
• and/or violation of the procedure of filling in of mandatory requisites of TI provided for by para. 201.1 TCU.  There are no such deficiencies in the TI.

Taking fiscals’ opinion into account, in order to avoid claims against the credit of the buyer, the seller should provide TI drawing up and ES imposing on it during registration in URTI by one person.

The State Fiscal Service of Ukraine by its letter “On the procedure for registration in the Unified Register of tax invoices of adjustment calculations to tax invoices including the date of preparation before 01.02.2015” of 16.11.15, № 24356/6/99-99-19-03-02-15 explained: special deadlines of registration of tax invoices issued during the period of 1 July to 30 September 2015 could be applied prior to registration in the Unified Register of tax invoices of adjustment calculations.

This refers to para. 39 of subsection 2 of sec. XX of the Tax Code of Ukraine (hereinafter – TCU) under which the tax invoices:

• prepared from 1 to 15 days (inclusive) of the month − registered to the last day (inclusive) of the month in which they to be drafted;
• prepared from 16 day to the last day (inclusive) of the month − registered to the 15th day (inclusive) of the month following the month in which they to be drafted.

There are more details about this in Calendar of registration of tax invoices and adjustment calculations.

The tax officers avoided a clear answer to the mentioned letter on extension of special terms for the registration of adjustment calculations. So we recommend to be guided by the general rule - 15 days from the date of their registration.

The State Fiscal Service of Ukraine by its letter “On inclusion to the tax credit of tax invoices issued in hard copies before introduction of the system of electronic VAT administration” of 16.11.15, № 24353/6/99-99-19-03-02-15 noted: if the amount of compensation to be reduced but the buyer failed the registration of adjustment calculations, the seller to be entitled to reduce the amount of tax liabilities of VAT only in the period of adjustment calculations in the Unified Register of tax invoices. At the same time controllers argue that a seller has such right within 365 calendar days from the date of adjustments calculation.

The State Fiscal Service of Ukraine in its letter “On determining of tax liabilities” of 12.11.15, № 24137/6/99-99-19-03-02-15 mentioned: taxpayer, whose non-current assets to be accounted for at the time of cancellation of VAT registration, and tax credit was reflected when the non-current assets to be obtained and which were not used in taxable transactions within its business activities, should no later than such date to charge tax liability under such non-current assets due to their usual price, determined at the moment of such calculation.

Under the regular price to be understood the price of goods (works, services) specified by the parties of the agreement, unless otherwise provided by the TCU. Thus, unless otherwise is proven, it is considered that such regular price corresponds to the level of market prices.

Controllers cited the determination of the market price from sub-paras. 14.1.219 of the TCU: “This is the price at which goods (works, services) to be transferred to another owner, provided that the seller wants to transfer such goods (works, services), and the buyer wants to obtain them on a voluntary basis, both parties are mutually independent legally and in fact, have sufficient information about such goods (works, services) and the prices which are in the market of identical (and in their absence - of similar) goods (works, services) in comparable economic (commercial) conditions”.

Corporate Income Tax

The State Fiscal Service of Ukraine by its letter “On amendments in payments accounting” of 13.10.15, № 37872/7/99-99-20-03-01-17 reminded that the transfer of amounts of advance payments of income tax should be implemented on the budget accounts under budget classification codes provided for the accounting of corporate income tax.

These changes are related to the exception of budget classification codes, provided for the accounting of revenues of advance payments, from the income tax. The State Treasury Service of Ukraine on 06.10.15 made transfer of advance payments balances from the income tax on the accounts of revenues for income tax and closed accounts of revenue accounting of advance payments from the income tax.

The State Fiscal Service of Ukraine by its letter “On determination of the financial result and income tax on transactions with securities due to differences arising from transactions for the sale or other disposal of securities measured at their fair value” of 29.10.15, № 22909/6/99-99-19-02-02-15 reported that the excess costs from markdowns of securities measured at fair value (excluding government securities or local loan bonds) over previously conducted revaluation of such securities increased financial result before tax.

In turn, the price reduction that does not exceed the amount earlier conducted revaluation does not increase financial results determined according to Accounting Standards or IFRS before tax.

Unified Social Contribution

The State Fiscal Service of Ukraine in its letter “On accrual of Unified Contribution for compulsory state social insurance on wages for those students who undertake an internship in company” of 13.10.15, № 21700/6/99-99-17-03-03-15 concluded that wages, charged for those students who undertake an internship in company under the contract on practical training, is the basis for accruing of Unified Contribution. It is interesting that the Ministry of Social Policy and the Pension Fund of Ukraine claim in their explanation that students-trainees are not in labor relations with a company where they have practice. Therefore, it is not required to accrue and to retain the Unified Contribution. However, in our opinion, the conclusion of the state financial control conclusion concerning the need of Single Contribution accruing and retaining is reasonable.

Also, the state financial control noted that additional charges of the Unified Contribution are not applied to the wages of students-trainees. And data on such people are not considered when calculating of defining the eligibility for decreasing coefficient.

Other taxes and fees

The State Fiscal Service of Ukraine in its letter “On making information to application 6 of Declaration of excise tax” of 22.10.15, № 9817/Б/99-99-21-05-14 advised to focus on the information indicated on the label of alcoholic product while completing some lines of application 6 “Calculation of excise tax on realization of excise goods by the retailing entities” to the Declaration of excise tax approved by the Ministry of Finance of Ukraine of 23.01.15, № 14 (hereinafter − Declaration).

In particular, in line 1 “Alcoholic beverages” of Declaration should be filled in types of vodka and alcoholic beverages (liqueurs, cordials, liqueurs, balms, aperitifs, cocktails, dessert drinks), while in line 2 “Wine products, other alcoholic distillates, products containing ethyl alcohol 8.5 percent by volume and more” of Declaration should be indicated natural wines, champagne wine, vermouth, brandy, cognac, whiskey, rum, gin, tequila etc.

Control and Responsibility

The Cabinet of Ministers of Ukraine by its Resolution “On amendments to paragraph 22.5 of the Road Traffic Regulations” of 21.10.15, № 869 banned vehicular traffic and their trains in case of transportation of divisible goods (i.e. goods that can be divided and transported by several trucks) on motor roads with loading on:

• single axle over 11 tons;
• dual axis − over16 tons;
• triplex axis − over 22 tons or actual weight of over 40 tons.

The traffic of container vehicle is prohibited on motor roads with loading on:

• single axis − over 11 tons;
• dual axis − over 18 tons;
• triplex axis − over 24 tons or actual weight of over 44 tons.

At the same time, transportation limit for container vehicle on specifically determined routes by Ukravtodor and State Traffic Inspectorate is larger − 46 tons.

Also, the traffic on public roads of local importance vehicles with axle load over 24 tons (or more than 7 tons per axle). List of such roads should be approved by the regional state administrations every three years (Sec. 11 of Art. 8 of the Law of Ukraine “On automobile roads” of 08.09.05, № 2862-IV).

The Verkhovna Rada of Ukraine adopted the Law “On the State Bureau of Investigation” (the bill registered at № 2114), which determined the legal basis for the establishment and activities of the Bureau.

The State Bureau of Investigation (hereinafter - SBI) is a central executive authority that carries out law enforcement activity for the purpose of prevention, detection, suppression and investigation of crimes within its jurisdiction.

The law defines the following main tasks of SBI:

• detection, solving, suppression and investigation of crimes related to the activities of organized criminal groups and organizations;
• detection, solving and investigation of cases of torture and other crimes related to cruel, inhuman or degrading treatment or punishment committed by law enforcement officers;
• detection, solving and investigation of especially grave violent crimes for which the Criminal Code of Ukraine provides for life imprisonment;
• solving and investigation of crimes committed by public officials occupying especially responsible position. The same applies to people whose positions belong to the first - the third categories of positions of State service, judges and prosecutors;
• solving and investigation of crimes committed by public officials of the National Anti-Corruption Bureau of Ukraine, prosecutors of specialized anti-corruption Prosecution Service. The exceptions are cases where prejudicial inquiry of these crimes belongs to the jurisdiction of detectives of the internal control unit of the National Anti-Corruption Bureau of Ukraine.

Also, this law:

• establishes guarantees of independence of SBI;
• forbids illegal interference of state agencies, local government authorities, political parties and other subjects of SBI activity;
• determines the powers of SBI;
• establishes peculiarities of obtaining of applications and reports about criminal offenses, people under investigation of SBI;
• determines the structure and size of SBI, the procedure for appointment of the director and his/her deputies, the powers of the director, restrictions of SBI staff;
• determines the financial and material support, social and legal defence and also responsibility of SBI employees;
• determines interaction of SBI with other state bodies, peculiarities of democratic civilian control over the Bureau activity and ensuring the transparency of its activities.

The Cabinet of Ministers of Ukraine approved its resolution “On approval of the Procedure of issuance of operational permit, form of operational permit and recognition invalid of some resolutions of the Cabinet of Ministers of Ukraine” of 1.11.15, № 930 (comes into force from the day of its official publication). According to the document the State Veterinary Phytosanitary Service issues operational permit based on results of verification of compliance of market operator capacities with requirements of sanitary measures (per each separate capacity). The permit enables market operator to do defined kinds of business activities of production and/or storage of food products of animal origin.

Now, market operator should submit together with the application a list of food products, which are planned to be produced or stored. It is specified that inspection should be conducted not later than 15 calendar days after receipt of the documents. The fee for a permit is 0.17 of minimum wages on 1 January of appropriate year. Currently, this amount is UAH 207.06 (previously – UAH 200).

In general, the procedure does not make revolutionary changes, but merely clarifies the current provisions of the legislation. The permit as before is to be issued within 30 calendar days from the day of receipt of the application and documents, but it is left with unlimited period.

Labour and Salaries

The Ministry of Social Policy of Ukraine in its letter “On indexation of wages in determining of allowances for the special kind of work” of 22.10.15, № 16009/0/14-15/13 clarified the introduction in September of 50% allowances for the special kind of work to the employees of social protection, who directly performed the function of providing various types of social assistance. As competent authorities emphasised, the mentioned above allowance was established due to the increased volume of work of such employees. And a month when the increase of money incomes appears due to the increased volume of work, should not considered to be the base with the purpose of indexation (para.5 of the Procedure of indexation of money incomes of population, approved by the Resolution of the Cabinet of Ministers of Ukraine of 17.07.03, № 1078).

The Ministry of Social Policy of Ukraine in its letter “On error correction in the notification of employment” of 09.10.15, № 1336/13/84-15 indicated that two types of notification of worker employment to be established in the Order of the Cabinet of Ministers “On the procedure for notification of the State Fiscal Service and its territorial bodies on worker employment” of 17.06.15, № 413:

1. “starting” − submission of information on the acceptance of the worker;

2. “cancelling” – to be submitted in the case of errors assumption by the employer and amending the notification of acceptance of the worker.

If the employer made a mistake in the mentioned notification (the submitted information should be amended), the mistake is to be corrected. For the correction the employer should submit a notice “cancelling” with mistakes and simultaneously – “starting” with the correct data to the SFS territorial bodies of the place of registration.

The Ministry of Social Policy of Ukraine in its letter “On the redundancy payment for an employee under para.1 of Sec.1 of Art.40 of the Labor Code before the warnings expiry” of 07.10.15, № 420/06/186-15 reports: current law does not give the right to the employer to dismiss a worker on its own initiative in case of changes in the organization of production and labor (para.1 of Sec.1 of Art.40 of the Labor Code) before the two-month period of the dismissal notice respectively.

However the agency believes that if the employee wishes to retire before the end of two months of the dismissal notice, the employer can satisfy the request.  But this initiative of the employee (to retire earlier) should be recorded on the paper. The employee should submit a statement where heshe asks to shorten the term of the dismissal notice, and where the date heshe wishes to retire to be indicated.

It should be reminded that whereas the basis for termination of employment contract is para. 1 of Sec.1 of Art.40 of the Labor Code, the employee should be paid the redundancy payment in the amount not less than the average monthly wage (Art.44 of Labor Code). However, additional redundancy payment could be established in workplace agreement of the company.

The Social insurance fund for temporary incapacity for work in its letter “On issues of average wages calculation in accordance to the Procedure № 1266” of 25.08.15, № 5.2-32-1380 indicated: if insured person was sick a part of the month in the accounting period, the single incentive and compensation payments accrued and paid in the this month should be included in full when the wages calculation. In other words it is not necessary to take into account the amount of payments proportion to the hours actually worked. And in any case, the amounts of monthly wages should be taken within the threshold for paying of single contribution.

In addition, the agency reminded: if the insured person for a serious reason (specified para. 3 of the Procedure of the average wage calculating (income, cash security) to calculate the payments on compulsory state social insurance, approved by the Cabinet of Ministers of 26.09.01, № 1266) didn’t work full month (the first day to the first day of the month) during the calculating period, such month should be excluded from the calculating period. Incentive and compensation one-time payments accrued and paid this month, are not included in the calculation of average wages.

Accounting and Reporting

The State Fiscal Service of Ukraine by its letter “On determination of the financial result and income tax on transactions with securities due to differences arising from transactions for the sale or other disposal of securities measured at their fair value” of 29.10.15, № 22910/6/99-99-19-02-02-15 reported that the excess costs from markdowns of securities measured at fair value (excluding government securities or local loan bonds) over previously conducted revaluation of such securities increased financial result before tax.

In turn, the price reduction that does not exceed the amount earlier conducted revaluation does not increase financial results determined according to Accounting Standards or IFRS before tax.

The Ministry of Finance of Ukraine in its letter “On involvement of means of transport during mobilization” of 11.06.15, № 31-11420-07-10/19544 reported: during the annual inventory it is not allowed to forget about assets, including vehicles that were mobilized according to Art.6 of the Law of Ukraine “On mobilization preparation and mobilization” of 21.10.93, № 3543-XII.

Therefore, they are also to be inventoried. Since (due to understandable reasons) access to such facilities is limited, the Ministers of Finance recommends to take an inventory of mobilize transport under the rules prescribed for the inventory of property transferred under custody.

Also, the Ministry of Finance noted that reflections in inventory register of mobilized transport should be conducted on the basis of Delivery-Acceptance Act and information received from the custodian of transport.

Mobilization and ATO

The Verkhovna Rada of Ukraine in general voted for legislation № 2035, which provided for increased responsibility for violation of guarantees to employees, called up for military service, established by the law.

Legislative changes provide for the introduction of penalties to employers for specified violation in amount of 10-fold minimum wages for each employee for whom the violation was committed. Currently this penalty is UAH 13 780.

In addition, the administrative penalty from UAH 850 to UAH 1700 would be imposed on public officials, legal entities and individuals-entrepreneurs who have violated the rights of mobilized employees.

Land Matters

The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On amendments to Section X “Transitional Provisions” of the Land Code of Ukraine on the extension of the restraint on alienation of agricultural lands” (bill № 3404).

Amendments extend the validity of moratorium on purchase and sale contract and disposal of land plots in a different way to the enactment of the law on dealings in lands of agricultural land, but not earlier than 1 January 2017.

The mentioned above moratorium during the relevant period is in effect on introducing rights to land shares (properties) to authorized capitals of business companies.

Summary of Court Rulings

The Supreme Economic Court of Ukraine in its letter “On Certain Issues of practical application of the Law of Ukraine “On Court Fee” (with amendments and additions introduced according to the Law of Ukraine of 22.05.2015, № 484-VIII) of 12.11.15, № 01-06/2093/15 paid attention to problematic issues regarding the payment of court fees. Here are some of them:

• statements of claim on liabilities to transfer funds under the contract of bank account belong to material nature. So, the Court Fee should be paid in the amount established for mentioned applications;
• deferral or instalment plan of payment of court fee is possible for a period not longer than adoption of the judgment in the case;
• court fee of appeal and cassation complaints against decisions of the court should be calculated based on the rates payable in the case of a claim regardless of whether appealing all decision (resolution) of the court in whole or in part.

If the court fee was paid before 01.09.15 the calculation of the court fee for applying an appeal or cassation should be carried out in view of the amount of court fee paid when submission a claim. This amount is not the subject to recalculation under the new rates, valid of 01.09.15.

Other Things

The Cabinet of Ministers of Ukraine by its Resolution “On establishment of the State Audit Service Ukraine” of 28.10.15, № 868 decided to create a new central executive body - the State Audit Service of Ukraine. The Service won’t come out of nowhere – the Government reorganizes the State financial inspection, and based on it is going to establish the auditing service.

It is not known what the Service is going to do and what its authorities are. The Ministry of Finance of Ukraine is authorized to develop provisions on auditing service within two months. It will be clear what controllers should do as soon as the document appears.

The Cabinet of Ministers of Ukraine by its Resolution “Some issue of providing of implementation of electronic service on apostille” of 04.11.15, № 890 approved the procedure for maintenance of Apostilles electronic register. According to the document, the state apostille registration should be implemented from 09.11.15.

However, before 15.12.15 the Ministry of Justice of Ukraine should provide the Register with the information about authorised signatures, seals impression or stamps of ministry officials authorized to issue the certificate, officials of state registration departments as well as state registrars. Application for apostille may be submitted by any person subject to presentation of a document certifying the identity of the citizen of Ukraine, foreigner’s national passport or a document certifying the identity of the foreigner. The original document for apostille and document on payment services should be added to the application.

It should be reminded that according to the Hague Convention of 1961 apostille is a special stamp, which is put on the official documents received from the countries - Parties to this Convention. Apostille exempts these documents from necessity of diplomatic or consular legalization. It certifies the authenticity of signature of a person signing the document and authenticity of the seal or stamp affixing the appropriate document.

The State Fiscal Service of Ukraine in its letter “On providing of tax consultations by the SFS agencies” of 06.11.15, № 23771/6/99-99-10-03-02-15 explained: the taxpayer can use tax consultation provided before 01.09.15, until it is changed or cancelled. Up to this point it is considered to be valid, and the payer acting in accordance with such consultation could not be brought to justice.

It should be noted that taxpayers worried because of amendments in Art.52 of TCU, according to which from 01.09.15 controlling authorities at district level were entitled to provide consultations only in oral form. But “immunity” is guaranteed only by written or electronic tax consultations. They are provided by tax administrations in AR of Crimea, Kyiv and Sevastopol cities, regions, interregional and SFSU.

The State Regulatory Service of Ukraine in its letter “On reissuance and issuance of license” of 26.10.15, № 8205 clarified the terms of reissuance of license. The Law of Ukraine “On licensing of economic activities” of 02.03.15, № 222-VIII did not establish the terms of reissuance of license.

The State Regulatory Service of Ukraine recommends using the terms provided for the decision to issue a license. That is ten working days of receipt day of the application for reissuance of the license by the licensing body.

The same situation is with the terms on taking decision on refusal to issue a license. It is advised to follow ten working days from the date of receipt the application for a license by the licensing body.

It should be reminded: information about the reissuance of the license to be recorded to the Unified State Register of Legal Entities and individuals-entrepreneurs not later than the working day following the day of the decision.

The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to the Law of Ukraine “On state registration of legal entities and individuals – entrepreneurs” and some other legislative acts of Ukraine on decentralization of authority of state registration of legal entities and individuals - entrepreneurs and community organizations” (corresponding bill was registered under № 2983).

The adoption of this law will provide the system reform of providing of administrative services in the sphere of state registration of legal entities and entrepreneurs. The purpose of the document is to bring the state registration in compliance with such principles of administrative services providing:

• disclosure;
• transparency;
• efficiency and timeliness;
• rational minimization of number of documents and procedural actions necessary to obtain the administrative services;
• availability and convenience for objects of applications;
• transfer of authority to provide administrative services in the field of state registration of legal entities and entrepreneurs to local governments, local state administrations, notaries and banks.

The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Article 60 of the Law of Ukraine “On Business Associations” (to reduce quorum of the general meeting of participants of a limited liability company)”. Corresponding bill is registered under № 2757, which establishes that the general meetings of participants are considered to be plenipotentiary, if participants, representatives of participants) are present there owning in aggregate more than 50% of votes.

At the same time the document also contains a provision which states: another percentage of votes also is entitled to establish quorum of participants. The limited liability company, which statutory capital has no the state share, has this possibility.

It should be recalled that currently quorum of general meeting of participants is equal 60% of votes.