The State Fiscal Service of Ukraine in its letter “The place of payment (transfer) by an individual – entrepreneur the individual income tax and the war tax from income paid to individuals in the form of rental payment for use of land plots” of 26.01.2016 № 347/Н/26-15-12-02-14 informs: an individual – entrepreneur pays (transfers) the individual income tax and the war tax at the place of his/her registration in controlling bodies when the payment of rental payment for use of land plots to individuals. This is due to the fact that the individual – entrepreneur, according to the paragraphs 14.1.180 of TCU, acts as a tax agent for the individual, which receives rent payment. And according to Art.64 of Budget Code of Ukraine, the PIT, paid by the tax agent – individual, should be paid to the appropriate budgets at the place of registration of such an individual in revenues and duties agencies. This also applies to the war tax, because the order of its payment (transfer) as well as the personal income tax is determined by Art.168 of TCU.
The State Fiscal Service of Ukraine in its letter “On taxation of dividend income accrued (paid) by company - resident of the Russian Federation in December 2015 and January 2016 to a citizen of Ukraine, who owns a share in the authorized capital of the Company” of 21.01.2016 № 645/П/99-99-17-03-03-14 reported that foreign income (including dividends), received in December 2015 by individual – resident, should be included in the total annual taxable income of such person for 2015. In this case the individual is obliged to file an annual tax return and pay the tax at a rate of 15 (20) % before May 1, 2016.
At the same time, the amount of indicated income, to be received by individuals - residents in January 2016, should be included to the total annual taxable income on the results of 2016 with reflection in the tax returns submitted before 1 May 2017 and taxed at 18% rate.
The State Fiscal Service of Ukraine in its letter “On the value of noncurrent assets for the purposes of accrual of depreciation in accordance with paragraph 138.3 of Art.138 of the Tax Code of Ukraine” of 28.01.2016 № 2784/7/99-99-19-02-02-17 informed about the determination of the amounts of adjustments for differences arising in the accruing of depreciation of noncurrent assets.
According to para.134.1.1 of TCU as in force on 01.01.2015, the subject to the income tax is a profit with the source of origin from Ukraine and abroad, which is determined by adjusting of the financial result before tax, as defined under national Accounting Regulations ( Standards) or IFRS, on the differences arising under the provisions of sec. III of TCU. In particular, differences arising when accruing of depreciation of noncurrent assets should be formed in accordance with the requirements of Art.138 of TCU.
It is stipulated in para. 138.1 of TCU that the financial result before tax should be increased:
- by the amount of markdowns and losses from utility decrease of fixed assets or intangible assets included in the expenses of reporting period in accordance with national Accounting Regulations ( Standards) or IFRS.
According to the para.138.2 of TCU the financial result before tax should be decreased:
- by the amount of surplus and benefits from utility recovery of fixed assets or intangible assets within previously classified as losses of markdown and losses from utility decrease of fixed assets or intangible assets in accordance with national Accounting Regulations ( Standards) or IFRS.
Therefore, to calculate the depreciation in accordance with para.138.3 of TCU, the value of fixed assets and intangible assets excluding their reassessment (markdown, surplus) conducted under the provisions of accounting should be recognized.
With due regard to the requirements of para.11 of sub-section 4 of sec. XX of TCU, when the calculation of depreciation of fixed assets and intangible assets in accordance with para.138.3 of TCU, book value of fixed assets and intangible assets as of 01.01.2015 should be equal to book value of such assets, determined as of 31.12.2014 in accordance with Articles 144 - 146 and 148 of sec. III of TCU, which was in force before 01.01.2015.
The SFS emphasizes that the tax advices in respect of value of fixed assets to determine differences in accordance with para.138.3 of TCU should be used insofar as it does not conflict with this explanation.
The State Fiscal Service of Ukraine in its letter “On providing an explanation” of 28.01.2016 № 2844/7/99-99-17-03-01-17 reported that before the approval of a new form, the Report of USC (Unified Social Contribution) should be submitted to revenues and duties agency both for reporting periods of 2016 and for previous periods before 2016 (untimely submitted) in the form according to Annex 4 to the Order № 435, effective as on 01.05.2015, with filling in all required details.
Despite the introduction of a single rate of the USC for all types of income, the lines in Table 1 of the Report of USC should be filled under types of income.
Starting from the reporting period of January 2016, the withholding of USC from accrued income of insured persons is cancelled, the figure should not be specified when filing the Report of USC (lines 5, 5.1 - 5.6 in Table 1 of the Report). Also, accrued income, from which the USC is withheld (lines 4, 4.1 - 4.4 Table 1 of the report), should not be reflected. Accordingly, the requisite 20 “The amount of unified social contribution withheld for the reporting month (from wage / income)” should not be filled in Table 6 of Report of USC.
Reports of USC for January 2016 should be submitted before February 22, 2016.
The Ministry of Finance of Ukraine by its order “On Approval of the forms and Procedure of filling and submission of tax returns of value-added tax” of 28.01.2016 № 21 (hereinafter - Order №21) established a new form of VAT returns. It entered into force on 01.02.2016. Except the tax return, the Procedure of filling and submission of tax returns of value-added tax was also updated.
In particular, the order № 21 approved:
- form of tax return of value added tax;
- form of refined calculation of tax liabilities for value added tax due to correction of independently identified errors;
- form of calculating of tax liabilities accrued by service recipients not registered as a payers of value added tax, supplied by non-residents, including their permanent representations that are not registered by taxpayers in the customs territory of Ukraine;
- the Procedure of filling and submission of tax returns of value-added tax.
It should be noted that the SFS informed on its web-portal: considering the fact that recent changes in taxation, which were implemented on 1 January 2016, could be reflected in full only in the tax return of the value added tax approved by the Ministry of Finance dated 28.01.2016 № 21, a new form of VAT return should be submitted in a new form electronically by all taxpayers starting from the reporting period for January 2016.
The Ministry of Finance of Ukraine by its order “On Regulation Approval on Financial Monitoring by reporting entities, the Ministry of Finance of Ukraine performs the governmental regulation and supervision of which” of 22.12.15 №1160 approved the relevant regulation and obliged the Auditors to report the State Financial Monitoring Service on suspicion concerning financial machinations. Now, auditors, audit firms, business entities (individuals-entrepreneurs), which provide accounting services, should provide disclosure detection of financial transactions between the customer of auditing or accounting services and their contractors and conduct their registration and inform the State Financial Monitoring Service if the entity has grounds to suspect, specified in Art. 16 of the Law of Ukraine “On prevention of legalization (laundering) of proceeds from crime, terrorist financing and the financing of spread of weapons of mass destruction of 14.10.2014 № 1702-VII.
A financial transaction is subject to financial monitoring if the reporting entity has grounds to suspect, in particular based on:
- risk criteria defined independently by reporting entities inclusive of risk criteria established by the central executive authorities on the formation and implementation of state policy in the sphere of prevention and counteraction to legalization (laundering) of proceeds from crime or terrorist financing;
- established on the results of analysis of the facts (facts) of discrepancy of financial transaction (transactions) of the financial condition and/or content of the customer activity;
- typological studies in the field of counteraction to legalization (laundering) of proceeds from crime or terrorist financing or financing of weapons of mass destruction, prepared and published by specially authorized body.
The Ministry of Social Policy of Ukraine in its letter “On calculation of average wages for accrual of compensation for unused leave” of 25.12.2015 № 1675/13/84-15 provided clarification on mentioned issue. The letter reports that maternity benefits should be included in payments that are taken into account when calculating the average wage for accrual of compensation for unused vacation.
But according to Sec. 6 of para.2 of the Order of calculating the average wage, approved by the Cabinet of Ministers of Ukraine of 08.02.1995 № 100, the time during which workers under current law or other valid reasons did not work and his/her wage wasn’t reserved or reserved in part, should be excluded from the calculation period. This provision applies to cases when child care leave to be granted to employees until the child reach 3 years of age in accordance with Art.18 of the Law of Ukraine “On leave” of 15.11.1996 № 504/96-ВР.
Therefore, when calculating the average wage for accrual of compensation for unused leave, when child care leave falls into accounting period until the child reach 3 years of age, the average daily wage is calculated by dividing total income for the last 12 months before leave granting on appropriate amount of calendar days of the year, decreased by the number of public holidays and nonworking days established by the law (Art. 73 of the Labor Code of Ukraine), and by the number of calendar days of staying of employee on leave for child care until the child reach 3 years of age. The obtained result is multiplied by the number of vacation calendar days.
