Taxes
The Ministry of Finance of Ukraine by Order No. 489 of August 30, 2021 set out in a new wording:
- the Procedure for consideration by the supervisory authorities of complaints against claims for payment of arrears of a single contribution to the obligatory state social insurance and against decisions on accrual of fines and imposition of fines;
- the form of the Decision on leaving the complaint without consideration (Annex 1 to the Procedure);
- the form of the Decision on the results of the complaint (Annex 2 to the Procedure).
This Procedure determines the actions for filing and reviewing by the State Tax Service of complaints on claims for payment of arrears of single contribution to the obligatory state social insurance and on decisions on accrual of fines and penalties and complaints of banks on decisions on imposition of financial sanctions.
The Procedure does not apply to appeals against claims and/or decisions of tax authorities, actions or omissions of their officials and other employees, if the law establishes a different procedure for appealing such claims and/or decisions, actions or omissions, as well as in appeals against decisions made in cases on administrative offenses.
Not subject to administrative appeal:
- liabilities to pay a single contribution, independently determined by the payer;
- claims and/or decisions that were appealed and complaints in respect of which were considered in accordance with the requirements of this Procedure;
- claims and/or decisions that are appealed by the payer in court.
Thus, the Procedure is brought in line with the requirements of Law No. 465-IX and Law No. 2464-VI, as Law No. 465-IX amended the Law on single social contribution in terms of clarifying the procedure for sending the claim for payment of arrears of the single contribution, the procedure and deadlines for consideration of the single contributor’s complaint by tax authority. In particular, in the new edition paragraph 7 of part 4 of Art. 25 of the Law on SSC. According to the Law:
- the tax authority reviewing the single contributor's complaint is obliged to make a reasoned decision and send it to the single contributor within 20 calendar days from the date of receipt of the complaint by mail with a notice of receipt or against signature;
- the head (deputy or authorized person) of the tax authority may decide to extend the term of consideration of the single contributor’s complaint beyond the established term, but not more than 60 calendar days, and notify the single contributor in writing before the end of the 20-day period;
- if a reasoned decision on the complaint is not sent to the single contributor within 20 days or within the period extended by the decision of the head (deputy or authorized person) of the tax authority, such complaint is considered fully satisfied in favor of the single contributor from the day following the last expiration date.
Thus, the term of consideration of the complaint is reduced from 30 to 20 calendar days, it is possible to extend the term of consideration to 60 days and determine from which date the complaint is considered satisfied in favor of the payer of single social contribution in connection with the expiration of its consideration.
This order came into force on November 9.
Accounting and Reporting
The Ministry of Finance of Ukraine by Order No. 496 of September 3, 2021 approved the Procedure for accounting of inventories for sole proprietors, including single tax payers.
This Procedure determines the rules of inventory accounting and applies to sole proprietors, including single tax payers, who in accordance with the Law “On the use of payment transactions recorders in trade, catering and services” are required to keep inventory and sell only those goods that are reflected in such accounting, and persons who actually carry out the sale of goods (services) and/or payment transactions at the point of sale (business object) of such SP.
Order No. 496 stipulates that the accounting of inventories is carried out by the SP by constantly entering in the Accounting Form information on the receipt and disposal of goods on the basis of primary documents, which are an integral part of such accounting.
A sole proprietor that has several points of sale (business objects) keeps records of inventories also for each individual point of sale (business object) on the basis of primary documents issued for a separate place of sale (business object), and/or primary documents for internal movement of goods and copies of primary documents confirming receipt of goods by SP. Primary documents for internal movement of goods and copies of primary documents for receipt of goods by SP are an integral part of such accounting.
The form of accounting is maintained at the choice of SP in paper or electronic form. When keeping records of inventories in electronic form, the sole proprietor chooses at own discretion the program format and method of entering information into the Accounting Form in compliance with the requirements of this Procedure.
Control and Responsibility
The Verkhovna Rada of Ukraine has adopted the Law “On Amendments to the Administrative and Criminal Legislation Concerning the performance of Duties of the Bureau of Economic Security of Ukraine”.
The law defines the legal basis for the creation and implementation of certain tasks of an independent state law enforcement body, which must perform the functions of analytical assessment, prevention, detection, termination, investigation and detection of criminal offenses under its jurisdiction.
The law establishes the following conceptual provisions:
In the Code of Administrative Offenses:
- the responsibility of employees of the Bureau of Economic Security of Ukraine (hereinafter –BES), who have special ranks, for administrative offenses under disciplinary statutes is determined;
- administrative liability is provided for illegal use of the name and signs belonging to BES.
The Criminal Code introduces liability for VAT fraud as a separate type of criminal offense, the investigation of which is within the competence of the BES.
Determining the specific composition of the crime of VAT fraud will provide an opportunity to effectively investigate the theft or misappropriation of budget funds in the form of VAT, and will avoid conflicts between law enforcement agencies in determining the composition of crimes under Art. 191 of the Criminal Code of Ukraine.
A number of other types of crimes have also been amended in connection with the establishment of the BES, ensuring its independence and the special procedure for investigating criminal offenses committed against its employees.
The draft law was registered under No. 3959-1.
Controlled Transactions
The Cabinet of Ministers of Ukraine has approved an updated procedure for preliminary approval of pricing in controlled transactions. The decision of the Cabinet of Ministers approved a new version of the Procedure for Preliminary Approval of Pricing in Controlled Transactions, as a result of which agreements of unilateral, bilateral and multilateral nature are concluded for the purposes of transfer pricing.
The adopted resolution provides:
- the only form of application for prior approval of pricing;
- submission of an application with attachments by a large taxpayer to the State Tax Service by electronic means during both the preparatory review and during the pricing agreement procedure in controlled transactions, as well as in case of extension of the preliminary agreement on pricing.
The proposed changes are aimed at speeding up and simplifying the administration of processes at all stages of the procedure of pre-negotiation of pricing in controlled transactions, including through their digital development, in particular during correspondence between the State Tax Service and a large taxpayer.
Financial Markets
The National Bank of Ukraine will require non-bank financial institutions to disclose more information to customers. In particular, the regulator expanded and specified the amount of information to be disclosed by non-bank financial services market participants, as well as improved the procedure for its disclosure.
In addition, the National Bank has set requirements for data disclosure on the financial institutions websites and in places of providing services to customers. The relevant requirements will apply to non-banking financial services market participants throughout their stay in the State Register of Financial Institutions.
Thus, providers of non-banking financial services will disclose their own registration data, conditions and procedures, a list of their own websites.
In addition, information on separate units and the list of persons providing intermediary services will be publicly available.
Accounting information will remain mandatory for disclosure, including the annual financial and consolidated financial statements, certified by an independent auditor, together with report will be published.
By making the information publicly available, non-bank financial service providers will be guided by clearly defined rules. Thus, the information should be relevant, not to mislead customers, and its search should be simple.
Such changes are made by the Regulation on the procedure for disclosure of information by non-bank financial institutions, approved by Resolution of the Board of the NBU No. 114 of November 5, 2021.
The document entered into force on November 10, 2021.
The new provision will allow customers to obtain all the necessary information about the financial institution, and therefore make an informed decision about cooperation.
Labor and Salaries
The Pension Fund of Ukraine has prepared a draft Resolution “On the procedure and order of submission of information for the creation of electronic employment records”. It can be found on the website of the joint representative body (hereinafter – JRB) of trade unions.
The draft act stipulates that information on employment of an employee, sole proprietors who are self-employed, in electronic form is submitted in any period within five years from the date of entry into force of the Law of Ukraine “On Amendments to some legislative acts of Ukraine on the accounting of labor activity of the employee in electronic form” taking into account the priority of submission and processing of information on labor activity of persons who has two or less years left to an old-age pension in accordance with Part 1 of Art. 26 of the Law of Ukraine “On Compulsory State Pension Insurance”, and on employment of persons for the period up to July 1, 2000.
In addition, it is proposed to approve amendments to the Procedure for submitting information on employment of an employee, sole proprietor, individual who is self-employed, in electronic form, approved by Resolution the Board of the Pension Fund of Ukraine No. 11-1 of March 12, 2021, in order to implement the provisions of the Law of Ukraine No. 1217-IX of February 5, 2021 “On Amendments to Certain Legislative Acts of Ukraine on Accounting for Employment of Employees in Electronic Form”.
The changes stipulate that information on the employee’s employment is submitted to the territorial body of the Pension Fund of Ukraine (hereinafter –PFU) by the employee personally or through the web portal of PFU electronic services in electronic form by the employee, insurer or the insurer’s representative.
It is envisaged that information on the employee’s employment for the period after the entry into force of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Accounting for Employee’s Employment in Electronic Form” is submitted as part of consolidated reporting on personal income tax, military levy and single social contribution.
There is no information in the register of insured persons about hiring, moving from one structural unit to another or transfer to another permanent position or job, dismissal, reinstatement, as well as the assignment, change or deprivation of rank, class, title, category, taking the oath, internship, training, etc. are submitted by the insured through the web portal of electronic services PFU in electronic form by creating an appropriate electronic record in the electronic office of the insurer no later than the day of dismissal.
The Other Things
The Verkhovna Rada of Ukraine adopted the Law “On Multimodal Transportation”. It defines the legal and organizational framework for multimodal transport and aims to create conditions for its development and improvement, encourage the use of cleaner modes of transport to protect the environment, prevent climate change and excessive energy consumption.
The law provides for the implementation of Council Directive 92/106/EEC of December 7, 1992 laying down common rules for certain types of combined transport of goods between Member States (in accordance with Annex XXXII to Chapter 7 “Transport”, Section V “Economic and sectoral cooperation” of the Association Agreement between Ukraine and the EU).
The law introduces the concept of multimodal and combined cargo transportation, multimodal terminal, multimodal transportation document, operator and customer of multimodal transportation, definition of multimodal transportation agreement, its essential conditions, rights and obligations of its parties, basic principles of state regulation and state aid.
The law enshrines the right of multimodal transport participants to carry out cargo transportation on the basis of a single contract (multimodal transport contract) for all stages of transportation regardless of changes in modes of transport and to carry cargo under one transport document (multimodal transport document).
The law stipulates that when providing a multimodal transportation service, the responsibility of the multimodal transportation operator for the cargo to the customer of the service covers the period from the moment of acceptance of the cargo to the multimodal transportation and to the moment of delivery of the cargo.
In order to receive compensation for lost (damaged) cargo, the customer does not need to establish at what stage of transportation the damage or loss of cargo occurred or which of the carriers did not fulfill the obligation to deliver the goods on time.
The law provides for the establishment of the maximum amount of liability of the multimodal transportation operator in special borrowing rights in accordance with current international practice.
The draft law was registered under No. 4258.
