The Ministry of Finance of Ukraine, by Order No.148 of March 22, 2023, approved the Procedure for filling in ‘Purpose of payment’ requisites of payment instructions when paying (collecting) taxes, duties, customs, other payments, a single contribution to mandatory state social insurance, making advance payments, cash deposit, as well as in case of their return.
Its main goal is to minimize the number of mandatory fields of ‘Purpose of payment’ details of the payment instruction, which are filled in by payers and executive authorities.
In particular, according to the order:
- the number of mandatory fields that payers fill in ‘Purpose of payment’ details of the payment instruction was reduced to 2 fields for payers on budget/non-budget/deposit accounts (‘Payment type code’, ‘Additional information of the record’), and for payers on a single account – to 1 field (‘Additional information of the record’);
- the number of mandatory fields filled by executive authorities in ‘Purpose of payment’ details of the payment instruction has been reduced. For example, territorial bodies of the State Tax Service and bodies of the state executive service fill in 3 fields (‘Account number’; ‘Tax amount’; ‘Additional information of the record’) when collecting funds to a single account.
Also, in the new Procedure for filling in ‘Purpose of payment’ details, examples of filling in these details are given.
In addition, it was established that the Procedure for filling in ‘Purpose of payment’ details of settlement documents for transfer in case of payment (collection) of taxes, fees, payments to budget accounts and/or a single contribution to mandatory state social insurance to non-budget accounts, as well as to a single the account approved by Order of the Ministry of Finance No. 666 of July 24, 2015 will be used only in the case of using the unstructured format of ‘Purpose of payment’ details in accordance with the international standard ISO 20022. Moreover, only for a transitional period until July 1, 2023. From this date, Order No. 666 will become invalid.
The Ministry of Finance of Ukraine has developed a new form of an advance report and the procedure for its preparation. The draft order ‘On Amending Ministry of Finance of Ukraine Order No. 841 of September 28, 2015’ was published on the website of the Ministry of Finance.
The changes are required in connection with the update of item 170.9 of the Tax Code, which was introduced by Law of Ukraine ‘On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine regarding Payment Services’ No. 2888-IX of January 12, 2023.
We remind you that Law No. 2888, in particular, updated paragraphs 170.9.4 of the Tax Code, which now provides for filling out a report on the use of funds/electronic money issued for a business trip or for a report. This document is drawn up and submitted by taxpayers (in paper or electronic form) in the form established by the Ministry of Finance, in the event of:
a) taxable income for the purpose of calculating the amount of tax;
b) taxpayer's use of cash in excess of the amount of daily expenses (including the amount obtained with the use of payment instruments).
The legislative changes also provide that if during a business trip or the performance of certain civil legal actions, the taxpayer used payment instruments, including corporate (business) payment instruments or personal payment instruments, or their details for cashless payments and/or for receiving cash within sums of daily expenses and in the absence of taxable income, a report on the use of funds/electronic money issued for a business trip or for a report is not compiled and submitted.
Given the above, the Ministry of Finance proposes to update the form of the Report on the use of funds issued for a business trip or for a report, and the Procedure for its preparation.
The draft order changed the name of the report itself to the following: Report on the use of funds/electronic money issued for a business trip or subject to a report.
The possibilities of using different types of signature have been expanded (signing by hand or using an electronic digital signature)
The terminology of the Report form has been brought into compliance with the Law of Ukraine ‘On Payment Services’, namely, the words ‘payment orders’ have been replaced by the words ‘payment instructions’.
The number of signatures required to ensure confirmation of a financial and economic transaction by responsible persons has been optimized.
The State Tax Service of Ukraine has approved new benefit directories as of March 30, 2023, namely:
- Directory No. 114/1 of tax benefits, which are losses of budget revenues;
- Directory No. 114/2 of other tax benefits.
In the mentioned directories, a list of benefits with their codes and terms of validity is given, in particular, from the corporate income tax; value added tax; from the land fee; from real estate tax; from excise tax, local taxes and fees.
We would like to remind you that accounting of the amounts of tax benefits received by business entities is carried out by the controlling authorities on the basis of the information contained in the tax declarations submitted by such business entities.
The Cabinet of Ministers of Ukraine has adopted amendments to the regulations simplifying the identification of a person when obtaining a qualified electronic signature.
From now on, when receiving fiduciary services, in particular by representatives of foreign legal entities, forming and issuing a qualified certificate for individuals or legal entities, it is not necessary to be present in person. You can confirm your identity online.
At present, not all providers can perform personal identification remotely. Instead, identification of a person is carried out in person. During martial law, this takes much longer and makes it impossible for users to receive an electronic signature in a timely manner.
The adopted resolution allows the use of different methods of identification of persons operating in the EU during the formation of qualified certificates for all categories of users. These conditions will apply regardless of the martial law in Ukraine.
The National Bank of Ukraine, by Resolution No. 42 of March 31, 2023 ‘On Approval of Changes to Certain Regulatory Acts of the National Bank of Ukraine’ , which entered into force on April 5, 2023, updated the approaches to supervision of the non-banking financial services market.
This results in:
- optimization of the process of interaction between the National Bank and market participants, in particular regarding the provision of necessary additional information during on-site supervision and inspections;
- ensurance of effective communication with participants in the market of non-banking financial services whose location, according to information from the Unified State Register, is the territory of active hostilities;
- actualization of the powers of the members of the inspection group and the duties of the head of the object of inspection;
- update of the criteria for assessing the degree of risk from activities carried out by participants in the non-banking financial services market;
- establishment of requirements for the structure of the plan for restoring the financial stability of credit unions;
- determining the procedure for monitoring compliance with the requirements regarding the ownership structure;
- update of the deadlines for providing information on changes in the composition of information on the ownership structure;
- spread of the requirements of the Regulation on requirements for the ownership structure of payment providers and providers of limited payment services in connection with the implementation of the Law of Ukraine On Payment Services’;
- optimization of the procedure of on-site supervision and inspections.
For this purpose, amendments were made to five normative legal acts of the National Bank:
- Resolution of the Board of the National Bank No. 157 of December 11, 2020 ‘On Approval of the Regulation on Establishing Criteria for Assessing the Degree of Risk from Activities by Market Participants of Non-Banking Financial Services, their Social Importance, based on which the Periodicity of Planned Inspections is Determined, and the Procedure of their Application’;
- Resolution of the Board of the National Bank No. 169 of December 28, 2020 ‘On Approval of the Regulation on the Implementation by the National Bank of Ukraine of Off-Site Supervision on the Markets of Non-Banking Financial Services’;
- Resolution of the Board of the National Bank No. 12 of February 1, 2021 ‘On Approval of the Regulation on the Use of Influence Measures by the National Bank of Ukraine in the Sphere of State Regulation of Activities in the Markets of Non-Banking Financial Service’;
- Resolution of the Board of the National Bank No. 22 of February 26, 2021 ‘On Approval of the Regulation on the Organization, Conduct and Registration of the Results of Inspections of Participants in Non-Banking Financial Services Markets’;
- Resolution of the Board of the National Bank No. 30 of April 14, 2021 ‘On Approval of the Regulation on Requirements for the Ownership Structure of Financial Service Providers’.
The Ministry of Finance of Ukraine by Order No. 154 of March 27, 2023, made changes to the budget classification approved by Order No. 11 of January 14, 2011.
Budget classification is a table with codes of budget receipts (revenues) (both state and local). Everyone uses it when making payments to budgets.
In particular, the Classification of budget revenues has been supplemented with new items.
In addition, some positions in the Departmental Classification of State Budget Expenditure and Crediting have been changed, namely 310, 311, 312, 313.
Also, positions 275 (Ministry of Development of Communities and Territories of Ukraine) and 276 (Ministry of Development of Communities and Territories of Ukraine (general state expenditures and lending)) are excluded.
The Ministry of Justice of Ukraine by Order No. 1158/5 of March 29, 2023 ‘On Amendments to Certain Regulatory Acts of the Ministry of Justice of Ukraine’ improved application forms in the field of state registration of legal entities, individual entrepreneurs, and public organizations. The application forms in the specified area are set out in a new edition, which will come into effect on May 1, 2023.
Submission of applications in the field of state registration of legal entities, individual entrepreneurs and public organizations in accordance with the forms approved by the specified order in terms of choosing a simplified taxation system and/or voluntary registration as a value added tax payer and/or inclusion in the Register of non-profit institutions and organizations under the time of state registration of changes to information about a legal entity/individual entrepreneur, contained in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations, by filling in the relevant pages of applications, will be carried out from the day of posting the relevant announcement on the website of the Ministry of Justice.
The Cabinet of Ministers of Ukraine has expanded the eRobota project and is launching new grant programs for veterans to start or develop their own business. The corresponding decision was made at the meeting of the Cabinet of Ministers on March 30.
In particular, new grant programs are being launched, under which you can receive a grant:
- UAH 250,000 – for a participant in hostilities and/or a person with a disability as a result of the war, provided that one workplace is created;
- UAH 500,000 – for a family member of a combatant and/or a person with a disability as a result of the war, provided that two jobs are created;
- UAH 1 million – for a participant in hostilities and/or a person with a disability as a result of war, who has been registered as sole proprietor for at least 3 years, provided that four jobs are created, at least 2 of which will be occupied by veterans or persons with a disability as a result of war.
Grants of UAH 500,000 and UAH 1 million will be provided under the condition of co-financing with the recipient in a ratio of 70/30, that is, the recipient of the grant must invest 30% of their own funds in business, 70% of the funds will be provided by the state in the form of a grant.
The entrepreneur can use the grant funds for the purchase of equipment, raw materials, materials, rent of premises and vehicles necessary for the implementation of business project, purchase of licensed software, payment for marketing and advertising services.
Applications for grants can be submitted from April 10 through the Diya portal.
In addition, grant recipients will be able to undergo free training on entrepreneurship and receive consultations at regional employment centers.
As a reminder, the government project eRobota includes grant programs aimed at stimulating entrepreneurial activity and job creation. In particular, these are micro-grant programs for opening or developing one's own business, grants for the creation and development of processing enterprises, planting a garden and viticulture, and greenhouse farming. Both active entrepreneurs and people with no business experience can apply for a grant. Currently, applications are being accepted for all areas of the program. Work is ongoing. The application is submitted through the Diya Portal.
