Taxes
Value Added Tax
The President of Ukraine signed the Law 'On the Repeal of Certain Laws of Ukraine' of 28.01.2014 № 732-VII. The laws, determined by this document, were adopted in violation of established procedures. In particular, cancelled:
- the Law № 727 on spreading TCU on non-tax sphere and on taxation peculiarities of public associations acting as a foreign agent;
- the Law №721 of the exemption from VAT import natural gas to Ukraine transactions. It should be noted that on the same day entered into force with the same content the Law of 01.28.2014 № 736 -VII. It was adopted in compliance with the required procedure.
The Cabinet of Ministers of Ukraine by its Resolution of 05.02.2014 № 43 amended the list of run off and ferrous and non-ferrous scrap, supply transactions of which , including imports , up to 1 January 2015 are exempt from VAT.
Excluded the following :
- and scrap of germanium ( УКТ ВЕД 8112 30 40 00);
- unwrought wolframite, run off and scrap ; powders (УКТ ВЕД 8112 40 10 00).
Were added the following:
- run off and scrap of germanium and vanadium (УКТ ВЕД 8112 92 21 00);
- unwrought wolframite, powders (УКТ ВЕД 8112 92 91 00).
The Ministry of Revenue and Duties of Ukraine by its Order of 16.01.2014 № 26 approved the Regulation on registration of VAT payers.
The new Regulation does not contain provisions and applications associated with certificates of VAT payers.
Besides form of extract from the registry of VAT (form №2 -BP) and request to receive it (form№ 1- ЗВР), intended to be copied on paper (by mail or in person), there is a certificate from the registry of VAT payers (form №2 - ДР) with a request to receive it (form № 1- 3ДР) .
Submission date (or mailing) of request - 2 , and reference - 5 working days.
According to the Regulation:
- Registered VAT payers do not need to re-register;
- Valid certificates (including on special treatment basis) can be used as extract before making any changes to the registry or getting extract and modification of data about the payer;
- Certificate and certified copies should be returned to the first call for extract.
The Ministry of Revenue and Duties of Ukraine in its letter of 17.12.2013 № 20121/5/99-99-19-04-02-16 said to apply tax benefit, exempting transactions on the supply of construction works from VAT, related to construction of affordable housing (p. 197.15 the Tax Code of Ukraine) are eligible only entities, that are developers and executives of the regional construction (purchasing) program of affordable housing in the relevant region (indicated in the passport of the program) and directly engaged in construction work.
The land plots on which such building is carried out, should be in a list - construction should comply with all requirements for funding, technical and other conditions determined by the Law 'On prevention of the global financial crisis on the construction industry and housing construction' and by relevant legal acts.
Other entities that perform work to provide affordable housing for subcontracts with implementing the regional program construction (purchase) of affordable housing, don’t have the right to use mentioned benefits and provide services with VAT charged at the full rate.
Income Tax
The Ministry of Revenue and Duties of Ukraine in its Letter of 29.01.2014 № 2191/7/99-99-19-03-01-17 pointed out to changes of its recommendations on drawing up of reporting on corporate income tax for 2013 . In particular, be permitted to apply the old forms, developed by the Ministry of Finance of Ukraine , but with two clarifications :
- Only for the period until will not be introduced a new form in the software of electronic reporting . About this date will be announced additionally;
- Letter concerns taxpayers reporting on a quarterly basis. For them, the reporting deadline – 10 February 2014.
Calculation of the monthly advance payment which should be paid from March 2014 to February 2015 inclusive, will be carried out in the old forms of declarations on an automatic basis (when the software will be modified ), and entered into the card 's account of the payer as follows:
- in a declaration on income tax of an enterprise (the Order of the Ministry of Finance of 28.09.2011 № 1213 ) (line 11 + line 12 - line 13.1 - line13.2 - line 13.6 of the Applications ЗП to line 13)/12;
- in a declaration on income tax of a bank (the Order of the Ministry of Finance of 21.12.2011 № 1683 ) (line 11 + line 12 - line 14.1 – line 14.2 of the Application ЗП to line 14)/12;
- in a declaration on income tax (profit) of an insurer (the Order of the Ministry of Finance of 22.06.2012 № 759) (line 13 - line 14.1) / 12.
The Ministry of Revenue and Duties of Ukraine in its letter of 30.12.2013 № 18744/6/99-99-19-03-02-15 noted that profit from the electricity industry (Class 40.11 Series 40 КВЭД 009:2005 or Сlass 35.11 КВЭД 009:2010), generating electricity exclusively from renewable energy sources is exempted from taxation
In the letter were recalled that Class 40.11 Series 40 КВЭД 009:2005 includes the production of electricity with using any sources, including heating, nuclear energy , water power, energy, derived from renewable sources, electricity produced by gas turbines , diesel stations or other renewable sources.
Class 35.11 Series 35 КВЭД 009:2010 includes all economic activities, related to the position 40.11.0 КВЭД 009:2005 , namely using generating systems for the production of electricity , including heating, nuclear , hydroelectric and gas turbines, diesel stations or other renewable sources other than generating electricity from incineration of wastes.
The Ministry of Revenue and Duties of Ukraine in its letter of 11.12.2013 № 26953/7/99-99-19-03-02-17 noted that income tax payers with the base tax (reporting ) period the calendar year should reflect (calculate ) in tax accounting of income tax return the amount of returnable financial assistance and imputed interest, accrued on such amounts for the reporting (tax) year, not quarterly.
Returnable financial assistance from non-payers of income tax (including non-residents) or payers, using the benefits from this tax, including applying a reduced rate, which was not returned at the end of the reporting period should be included in other income . Further, the amount of returned financial assistance is included in the costs.
Amounts of imputed interest, accrued on returnable financial assistance, received from income tax payers and not returned at the end of the reporting period are included in the taxpayer's income as non-repayable financial assistance.
Personal Income Tax
The Ministry of Revenue and Duties of Ukraine in its letter of 08.11.2013 № 14933/6/99-99-17-02-01-15 analyzed the order of t personal income tax payment by legal entities, their branches, offices and other separated units and noted that if the legal person has neither authorized nor unauthorized separated divisions, the personal income tax on income, paid to an individual in the form of rent for the land, such person should pay (transfer) at its location on the accounts, opened in the State Treasury authorities.
Personal income tax withheld by separated division, in particular, from the incomes of employee, working on rented lands are, transferred to the local budget at the location of such separated division.
For the separated division, which is not authorized to charge (to pay) the personal income tax, all duties should be paid by the legal entity.
Simplified Taxation System
The Ministry of Revenue and Duties of Ukraine in its letter of 14.01.2014 № 464/5/99-99-19-01-01-10 noted that the Tax Code of Ukraine does not impose restrictions on the possibility of a single tax payer - natural person who is in group 2, to provide services on hotel accommodation to foreigners, residing in Ukraine for a short time.
Authors of the letter reminded that if the primary document was prepared outside of the village, as a place where business operation performed, should specify the appropriate administrative and territorial unit.
In case of documentation business transaction carried out outside of Ukraine by primary document should be specified the name of country.
The absence of this document does not allow to make document primary.
Other taxes and duties
The Ministry of Revenue and Duties of Ukraine by its Order of 05.12.2013 № 766 approved the form of a declaration on real property other than land tax.
Compared to the form of the Ministry of Finance there are several differences, but they are inessential. Attention should be paid only to one difference - in the form of detailed information about residential real estate, which is attached to the declaration , the box is added to reflect the code of the territory where the facility is located (КОАТУУ).
As it is known, the enterprise on its own calculates the amount of tax as of 1 January of the reporting year and to 20 February of the same year gives in to supervisory authority at the location of the object of taxation declaration with quarterly breakdown of the annual amount.
The Ministry of Revenue and Duties of Ukraine by its Order of 30.12.2013 № 866 approved the tax declaration forms for fee on parking and tourist tax .
In the new forms:
- Detailed note to box for affixing the period for which errors are corrected. Clarified that this figure is filled in case of specification of figures of declaration, filed before, with reporting or reporting new declaration for any subsequent tax (reporting) period for which data errors were identified by taxpayers.
- Specified box titles for reflecting the local government code.
The Ministry of Revenue and Duties of Ukraine by its Order of 05.12.2013 № 767 approved the form of calculating the amount of the fee for the first registration of vehicles.
In this form exists the table for recording additions in accordance with par. 46.4 TCU, according to which if the payer believes that the form of the tax declaration increases or reduces its tax liability despite TCU, he has the right to note this fact it in the provided space.
Enterprises within ten days after the first registration of vehicles in Ukraine give in to the appropriate supervisory authority of its location and of the place of registration of the vehicle calculation of the fee for these vehicles. To calculation must be attached copies of registration documents, certified by an appropriate authorized state body which carried out the registration.
The Ministry of Revenue and Duties of Ukraine in its letter of 16.01.2014 № 842/7/99-99-15-04-01-17 reminded that since 1 January 2014 the rates of fee for special use of forest resources increased by 2 times.
Calculation and payment of fees in 2014 remained unchanged.
Deadlines for providing the calculation and payment of tax liabilities for special use of forest resources:
- 2013 : 10 of February and 19 of February 2014;
- I quarter 2014 : 12 of May and 20 of May 2014 ;
- half of 2014 : 11 of August and 19 of August 2014 ;
- three quarters of 2014 : 10 of November and 19 of November 2014 ;
- 2014 : 9 of February and 19 of February 2015
The Ministry of Revenue and Duties of Ukraine by its Order of 30.12.2013 № 865 approved the Tax Declaration form for land payment (land tax and / or rent for the land plots of the state or communal ownership).
The form identical to the acting on current date.
Recall that business entities independently calculate the amount of tax annually as of 1 January and no later than 20 February of this year should submit to the appropriate supervising authority at the location of the land plot the declaration for the current year.
Unified Social Contribution
The Cabinet of Ministers of Ukraine by its Resolution of 29.01.2014 № 31 matched with the legistation on an unified social contribution procedure of its calculation and payment for certain categories of insured persons:
1) passing military service in the Armed Forces and other security agencies (Security Service of Ukraine , the Ministry of Internal Affairs , the Civil Protection authorities );
2) receiving benefits for child until they reach the age of 3;
3) unemployed able-bodied persons who are caring for a disabled group I , a disabled child or elderly persons and receive state assistance;
4) parents and child minders of family-type homes , foster -parents receiving state assistance.
Innovations, provided by the document, are the replacement of Pension Fund of Ukraine authorities on tax authorities , increase the maximum size of the income of one person , which is charged with an unified social contribution from 15 to 17 of personal exemption, establishing by the Ministry of Revenue and Duties of Ukraine in agreement with Pension Fund of Ukraine and the social insurance funds reporting deadlines.
The Ministry of Revenue and Duties of Ukraine reminded that reconciliation of the accrual and payment of Unified Social Contribution should be held at the request of taxpayers. It is about employers and self-employed persons.
For this purpose, to the authority of revenue and duties on principal place of registration application is submitted in any form for the reference of no debt for Unified Social Contribution payments. The application should contain name of the institution where this information is supplied. Supervisory Authority on the basis of the payer's account card detects the presence/absence of debt for Unified Social Contribution payments on the date of the reference formation.
The reference in any form (other than the reference of absence of debt for Unified Social Contribution payments in connection with the decision on liquidation, corporate restructuring , business interruption individual) is free for 15 days .
The Ministry of Revenue and Duties of Ukraine in its letter of 26.11.2013 № 16087/6/99-99-1703-01-16 reminded that up to 1 July 2013 Unified Social Contribution (USC) had not been accrued on the amount of benefits in connection with pregnancy and childbirth. Therefore, the amount of benefits for pregnancy and childbirth which is calculated for the mentioned period is not the base for USC taxation.
Sick leave and maternity leave, which was opened after 01.07.2013 should be included in the calculation of USC base.
Control and Responsibility
The Ministry of Revenue and Duties of Ukraine in its letter of 24.01.2014 № 1700/7/99-99-15-04-01-17 reminded about the features of toll for use of radio- frequency resource , and noted that for its declaration is used acting form of calculation, approved by order STA .
Payers should submit to regulatory authorities copies of licenses for use of radio- frequency resource, licenses for broadcast and permissions to use radio and electronic means and emitting devices within a month after their issuance.
In case of non-payment within six months, the relevant license and permission are canceled without compensation of losses and debt enforcement.
The Ministry of Revenue and Duties of Ukraine by its Order of 31.12.2013 № 896 approved the program for support par excellence payers and criteria for their definition.
The main advantages of exemplary - planned documentary inspection no more than once every three calendar years, desk audits of VAT reporting within 5 working days and automatic VAT refund .The actual gain is reducing of terms submitting to the tax authorities:
- Tax advice from 30 to 20 calendar days;
- The following administrative services from 5 to 3 working days: issuance of references of absence of tax debt, issuance of references on payment by non-residents in Ukraine Tax expense ( income) , assurance of reference on the declaration of currency values, the registration of reference of absence from business entities outside Ukrainian currency values and property.
Labour and Salaries
The Cabinet of Ministers of Ukraine by its Decree of 29 January 29 2014 changed indexation of population income procedure. Text of the Decree has not yet been made public.
In particular, specified types of income, which are not subject to indexation. Now they also include payment, calculated from the average wage (payment for vacation, sick leave, business trip). In addition, changed the mechanism of calculating the amounts of indexation if the employee works part-time - the amount of indexation should be paid proportionally to working days.
Also updated the mechanism of calculating the amounts of indexation in case of increase of wages, such as a surcharge for a temporarily absent employee or payment of premiums.
The Ministry of Social Policy of Ukraine in its Letter of 14.11.2013 № 490/13/116-13 noted that fixed-term employment contract is signed when the employment relationship can not be established for a certain period depending on the type of work or its conditions, or interests of the employee and in other cases, covered by the legislation.
In the order of hiring an employee for a fixed term contract is necessary to note term of employment contract.
State ensures the financial assistance to teachers for recovery in the amount of monthly salary (wages) when vacation is provided and payment of month bonuses for seniority in size from 10 to 30% of the salary (wage) depending on employment term.
Payment of aid amounting to salary provided at the main place of work in the provision of regular vacation according to the schedule, regardless of the week (annual) teaching work or the scope of work.
The Ministry of Social Policy of Ukraine in its Letter of 10.12.2013 № 1141/13/155-13 clarified the conditions of bonus payment to a chief accountant of school. Bonuses for school leaders, educational institutions and research institutions, their deputies, determination bonuses to the salaries, provision of financial assistance made by the decision of a higher level authority within the available funds.
Specific conditions, procedure and size of staff bonuses determined by Regulation on bonus payment of the relevant authority, depending on the funds available for this purpose.
Job title 'Chief Accountant' with code 1231 (Occupational Classification ГK 003:2010) according to occupational classification relates to the professional group 'Managers of financial, accounting, economic, legal and administrative units and other leaders'. Thus, his bonuses like other workers, allowed by a decision of the head of the institution on the ground of the order .
The Ministry of Social Policy of Ukraine by its letter of 23.01.2014 № 13/06/186-14 reminded terms of attracting employees to work on weekends. Existing labor legislation does not contain provisions about prohibiting to sign the employment contract at the weekend , with the proviso that these days the company are working in accordance with the internal regulations and collective agreement ( applications to which are usually work schedules , shift) .
Hiring order which should be signed by the employee may be issued prior to admission as an employee to work, and after the actual admission (but necessarily in the order should be specified the date of the beginning of work ) .
Social Protection of Disabled Fund in its the letter of 28.05.2013 № 1/6-175/09 noted that the Law 'On Social Protection of Disabled in Ukraine' does not set standards for the employment of disabled people in relation with the notice of a job center vacancies and in case of default of this standard the company should pay sanctions.
Social Protection of Disabled Fund said that ensuring the rights of disabled persons for employment and paid work, including the condition of work at home, carried out by their direct appeal to enterprises, institutions, organizations or public service employment.
Selection of the workplace is carried out mainly in the enterprise, where disability had taken place, with the wishes of the disabled, its existing skills and knowledge, as well as the recommendations of medical and social expertise.
The Ministry of Social Policy of Ukraine in its letter of 26.12.2013 № 14909/0/14-13/06 on consideration of the order of business entities employing workers for further performance of their work in Ukraine for another employer, noted that such activities indicated by subject in the registration card confirming state registration of legal entities and physical persons-entrepreneurs, as one of the core activities (codes 78.10, 78.20 and 78.30 КВЕД: 2010) and is carried out only on the basis of a permit, issued by the State Employment Service.
If the subject of economic activities does not have types of its activity in accordance with КВЕД 78.10, 78.20, 78.30 or they are not assigned to the main resolution on hiring employees for further performance of their work in Ukraine for another employer by State Employment Service is not issued.
Also, it is obligatory to sign relevant agreement between the employer, hiring workers and the employer who will use work of such employee.
Accounting
The Ministry of Revenue and Duties of Ukraine by its Order of 24.12.2013 № 844 amended the Procedure of registration and running settlement books, books of settlement operations .
The main changes relate to КУРО forms (on PPO and economic unit) .
КУРО form on economic unit (Appendix 2) and a section for accounting РК form КУРО on PPO (Appendix 1) were returned to its original appearance by adding some boxes .
In the Procedure of КУРО running the errors were corrected:
- ambiguous wording of duty to use КУРО on PPO and on economic unit ;
- incorrect reference to the application (Appendix 3) instead of КУРО on economic unit (Appendix 2) in the context of an authorization to perform additional totals records.
The Ministry of Finance of Ukraine by its Order of 31.12.2013 № 1203 approved Сhart of account in public sector.
State Treasury Service by its Order of 13.02.2014 № 53 adopted an action plan for the opening of accounts for the accounting of income to state and local budgets , adjustments to their analytical parameters in accordance with the requirements of the Law on the State Budget of Ukraine for 2014 .
Key stages of the plan:
17 February 2014 - the opening and bringing new account details to the Ministry of Revenue and Duties of Ukraine authorities and other bodies controlling the charging revenues to the budgets for further notices to taxpayers;
1 March 2014 - ensuring the transfer of balances from accounts that are closed to new accounts , bringing the norms of distribution of payments in accordance with the laws ;
3 March 2014 - the beginning of transactions with new accounts.
Securities
National Commission on Securities and Stock Market by its decision of 27.12.2013 № 2998 approved the Regulation on the Procedure of issuance of corporate bonds, bonds of international financial organizations and their circulation.
National Commission on Securities and Stock Market by its Decision of 26.11.2013 № 2670 approved the Procedure for processing complaints of self-regulating organizations of professional stock market participants on the delegation of authority to self-regulatory organizations, professional stock market participants and making decision.
Financial Services Market
National Commission for the State Regulation of Financial Services Markets by its Regulation of 30.01.2014 № 278 issued new edition of the Model rules of construction funds (CF).
According to the Model Rules manager should conclude with the developer agreement under which the developer agrees to build one or more construction projects , put into operation in accordance with legislation and handed over CF investment principals in a timely manner, and the manager is committed undertake to carry out construction financing of construction projects on a contract basis .
This contract should contain a commitment of the builder after construction hand over investing in property principals CF under the terms of the Law 'On financial and credit mechanisms and management of property in housing construction and real estate' and these Rules.
For a construction project, the developer has no right to enter into agreements with various managers of CF.
Other things
The Verkhovna Rada of Ukraine adopted a new Law on the Cabinet of Ministers of Ukraine. The document was prepared in connection with Constitution changes. It should ensure compliance the legal status of the CMU with basic constitutional norms.
Parliament also adopted the Laws:
- On amending the Law of Ukraine 'On the central executive authorities' on bringing it to conformity with the Constitution of Ukraine;
- On amending the Law 'On local state administrations' on bringing it into conformity with the Constitution of Ukraine.
The Cabinet of Ministers of Ukraine by its Resolution of 29.01.2014, № 33 approved basic standard of share of profits contribution, which is used for payment of dividends on the results of financial and economic activity in 2013of business entities in the authorized capital of which is contained corporate law of State in the amount of 30%.
If non-payment of dividends up to 1 July 1 2014 on the basis of financial and economic activity in 2013, the contract with the head of the business entity will be cancelled.
The Ministry of Revenue and Duties of Ukraine by its Order of 17.01.2014 № 32 approved the reference on ownership in private person of land plots (the form№3ДФ ) . It confirms the right of such person to receive income from the tax withholding agent without personal income tax.
The reference is issued to owners of agricultural products, grown, fattened , caught , collected , produced , manufactured, processed or processed directly by private person on land plots, granted in the size, established by the Land Code of Ukraine.
This form differs from the current by availability of two new margins where should be shown the information on land shares allocated in kind (on site ), in particular , are not used ( leased, serviced) .
The Ministry of Foreign Affairs, the Ministry of Education and Science, the Ministry of Justice of Ukraine by joint Order of 05.02.2014 № 41/101/250/5 amended the rules of apostille on official documents attachment, intended for use in other states.
Payment for services on apostille attachment conducted by transfer of funds through banks, post offices or software and hardware self-service.
The terms of keeping order books on providing apostille services (from 75 to 25 years ) and receipts for service ( from 75 years to 3).
Note that the apostille - one of the ways of legalization of documents , for example reference on the amount of paid tax abroad, which could be counted to reduce tax liabilities in Ukraine.
State Agency for Tourism and Resorts in its letter of 27.01.2014, the № 260/60/2-14 reports that the legal basis for assessment procedures of hotels, which is owned to private person - entrepreneur, on accordance with a certain category (five stars, four, three, two stars and one star) and certificate establishing the appropriate category are not available.
This is the conclusion the authors letters were based on a determination hotels, which should be a legal entity.
State Land Agency by its letters of 14.01.2014 № 28-28-0.17-250/2-14 and of 21.01.2014 № 28-28-0.17-575/2-14 provided explanations regarding:
- Re-registration of a right of permanent land using;
- Order of registration of a right of using (lease) of land for agricultural purposes.
