The Verkhovna Rada of Ukraine posted a draft law on its website according to which the income tax will be replaced by the exit capital tax. The document clearly states that the abolition of the income tax and the introduction of the exit capital tax will take place on 01.01.19.
The subject to the new tax are the transactions on capital exit and transactions that are equated with capital exit transactions.
It should be explained that exit capital transactions are, in particular, the payment of dividends in favor of a non-resident or a unified tax payer, payment of part of the profits to state-owned enterprises, the return of contributions to the owner of corporate rights - non-taxpayer (in the amount exceeding the cost of the contribution made by the founder and / or the owner before the authorized capital of such legal entity), etc.
Tax rates - 15%, 20%, 5%.
By December 31, 2018, lawmakers plan to create a Register of Taxpayers for the exit capital tax, to which the payers of the company income tax registered in the controlling authorities as of 01.12.18 are included.
The President of Ukraine signed the Law of Ukraine “On Currency and Exchange Transactions”.
This legal act liberalizes exchange transactions in Ukraine, and they can be practically unrestricted.
The key innovations of the law are as follows:
- Ukrainians will be able to invest abroad without obtaining individual exchange licenses;
- the law will allow to remove of excessive foreign exchange controls from minor transactions both for the population and for business;
- the law provides significant benefits to exporters and importers.
Despite the fact that there are no prohibitive measures in the law, this does not mean that they will not exist at all. If necessary, the National Bank will be able to set its own limits if it detects risks in the currency market.
The new law will become the only legislative act that determines the procedure for the organization of currency regulation and the implementation of foreign exchange supervision in the country.
The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the Procedure for Voluntary Insurance of Responsibility of Heads and Members of the Supervisory Councils of State Unitary Enterprises and Economic Associations in the authorized capital of which more than 50 percent of shares belong to the state” approved the procedure for voluntary insurance of liability of heads of state enterprises.
According to the Resolution, the decision on the conclusion of the insurance contract is taken by the management entity of the objects of state property, the sphere of management of which belongs to the company, and the general meeting of the company.
Among the insurance risks to be reimbursed are:
- investment activity that led to losses of the enterprise;
- comments and statements by company managers that negatively affected the business reputation of the enterprise and led to its losses;
- disclosure of official and confidential information and commercial secrets, which caused the enterprise to be damaged;
- conclusion of agreements, including those in which directors or members of the supervisory boards have personal interest that resulted in losses;
- causing damages to the enterprise during the procedures for its reorganization or liquidation;
- disclosure of false financial statements of the enterprise that led to its losses.
The State Fiscal Service of Ukraine in its letter “On clarification of certain norms of legislation” of 06.06.2018, No. 19467-16/99-99-13-01-01-15 reported that in accordance with para. 299.10 of Art. 299 of the Tax Code of Ukraine (hereinafter - TCU), the registration as the unified tax payer is permanent and can be canceled by way of exclusion from the register of the unified tax payers by the decision of the controlling authority in the case of:
- submission by the taxpayer of the application for the refusal of the application of the simplified taxation system in connection with the transfer to payment of other taxes and fees determined by the TCU - on the last day of the calendar quarter in which such application is submitted;
- termination of entrepreneurial activity by an individual entrepreneur in accordance with the law - on the day of receipt by the relevant controlling authority from the state registrar of the notification of the state registration of such termination;
- in the cases specified in paras. 298.2.3 of para. 298.2 of Art. 298 of TCU.
Provided that the relevant control authority identified during the inspections of violations by the unified tax payer of the first - third groups of requirements established in Chap. 1 of sec. XIV “Special tax regimes’ of the TCU, cancellation of registration of the payer of the unified tax of the first to the third group is made by the decision of such a body, adopted on the basis of the act of verification, from the first day of the month following the quarter in which the violation was committed. In this case, the business entity has the right to choose or to move to the simplified taxation system after the end of four consecutive quarters from the moment the decision was made by the controlling authority (para. 299.11 of Art. 299 of TCU).
The TCU norms do not provide for the establishment of a certain form of decision to cancel the registration of the unified tax payer. Such a decision is given to the taxpayer in writing, signed by the head of the supervising authority, with mandatory indication of the grounds for canceling the registration of the unified tax payer.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Rates of the Unified Tax” of 26.06.2018, No. 2860/6/99-99-12-02-03-15/ІПК reported: if the unified tax payer decided to change the rate of the unified tax from 5% for 3%, he/she should submit not later than 15 calendar days before the beginning of the calendar quarter:
- registration statement of the VAT payer;
- statement on the application of the simplified taxation system, in which to indicate the change in the rate of the unified tax.
Then the 3% rate can be applied from the beginning of the quarter following the quarter in which the taxpayer applied for a change in the unified tax rate.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On VAT Taxation” of 25.06.2018, No.2821/6/99-99-15-03-02-15/ІПК reported that upon import of goods into the customs territory of Ukraine, the right to the tax credit for such a transaction arises only at the customer at the date of payment of VAT liabilities in accordance with para.187.1 of the TCU on the basis of a customs declaration, drawn up in accordance with the requirements of the legislation.
Tax liabilities on commissions, the commissioner has in accordance with para. 187.1 of the TCU in the general order in accordance with the rule of the first event:
- or by the date of receipt of the remuneration from the customer on the current account;
- or by the date of signing the act of the services provided.
At the same time, the VAT base is determined in accordance with the requirements of para.188.1 of the TCU.
Consequently, if, in accordance with the commission agreement, the commission agent at the expense of the commissioner purchases goods from a non-resident and, at the time of customs clearance, pays the VAT to the budget, then the right to assign the amount of VAT to a tax credit has only the owner of such goods - the customer on the basis of the customs declaration, in which it should be indicated as the recipient (owner) of the goods.
The National Bank of Ukraine adopted the Resolution “On Amendments to the Resolution of the Board of the National Bank of Ukraine dated October 1, 2015 No. 654” of July 3, 2018, No. 73, which allowed persons sanctioned to carry out obligatory financial transactions within the state.
The resolution adopted by the NBU brought its requirements in line with the decision of the National Security and Defense Council of Ukraine (NSDC) “On the Application and Amendment of Personal Special Economic and Other Restrictive Measures (Sanctions)”, enacted by the Decree of the President of Ukraine of 21.06.2018, No. 176/2018. In particular, in pursuance of paragraph 4 of this decision, the National Bank extended the mechanism for the implementation of sanctions applied by the NSDC by banks, non-banking institutions, the national postal operator, and payment institutions.
Also, the National Bank allowed the persons sanctioned “to prevent the capital exit outside Ukraine”, to fulfill their obligations to Ukrainian counterparties, and also to make mandatory payments to the budget, payment of wages, etc.
The State Labor Service of Ukraine in its letter “On the decision making on the imposing penal sanctions in case of independent removal by the employer of the violation of labor legislation” of 07.05.2018, No. 3571/4.1/4.1-ДП-11 reported that in case of independent removal by the employer prior to the inspection visit violation of the legislation on the payment of compensation for all days of unused leave on the day of dismissal in accordance with the requirements of Article 117 of the Labor Code of Ukraine, this fact would be taken into account by the authorized person when deciding on the consideration of case on penalties imposition.
It should be recalled that in accordance with Article 83 of the Labor Code of Ukraine (hereinafter - Labor Code), in the event of the dismissal of an employee, he/she to be paid monetary compensation for all unused days of his/her annual leave, as well as additional leave for workers with children or an adult child with disabilities from the childhood of a subgroup A of Group I.
Article 116 of the Labor Code provides that, upon dismissal of an employee, payment of all sums belonging to him/her from the company, institution or organization should be carried out on the day of dismissal.
Failure to comply with the minimum state guarantees for remuneration in accordance with the paragraph of the fourth part of Article 265 of the Labor Code entails the imposition of a fine on a legal entity and an individual – entrepreneur, who uses hired labor, in tenfold of the minimum wage established by law at the time of the detection of the violation, for each the employee for whom the violation was committed.
At the same time, the State Labor Service stresses that the letters of the ministries, other central executive bodies are not normative legal acts, they are only informational and do not establish legal norms.
