The Cabinet of Ministers of Ukraine, by Resolution No. 660 of June 30, 2023, amended item 4 of the Procedure for Certification of Workplaces by Working Conditions, approved by Resolution No. 442 of the CMU of August 1, 1992.
Now, according to the decision of the employer, agreed with the trade union, certification of workplaces by working conditions can be carried out within six months from the date of termination or cancellation of martial law in Ukraine.
The results of the certification carried out before the introduction of martial law in Ukraine continue to be valid and used during the period of martial law and for six months from the date of its termination or cancellation.
The State Tax Service of Ukraine has developed a procedure for appealing the decision to disregard the payer’s table and the payer’s compliance with risk criteria. Draft Law of Ukraine ‘On Amendments to the Tax Code of Ukraine on Bringing UKT FEA Codes of the Economic and Financial Markets into Compliance and Clarifying Certain Provisions’ (hereinafter – the draft law) is posted on the web portal of the State Tax Service of Ukraine.
The draft law was developed in connection with the need to bring the codes in accordance with the Ukrainian classification of goods of foreign economic activity (hereinafter – UKT ZED), listed in the Tax Code, in accordance with the requirements of the new version of 2022 of the codes of UCT ZED, approved by Law of Ukraine No. 2697-IX of October 19, 2022 ‘On the Customs Tariff of Ukraine’ (hereinafter – Law No. 2697), bringing it into line with Law of Ukraine No. 1053-IX of December 3, 2020 ‘On Rehabilitation in the Field of Health Care", as well as clarifying certain provisions and elimination of technical inaccuracies for the full application of legal norms.
Thus, Law No. 2697 establishes a new version of the nomenclature of the Customs Tariff of Ukraine, which is based on a new version of the UKT FEA, built on the basis of the Harmonized Commodity Description and Coding System 2022 version and the Combined Nomenclature of the European Union of 2022, which apply from January 1, 2023. At the same time, Law of Ukraine No. 674-IX of June 4, 2020 ‘On the Customs Tariff of Ukraine’ (as amended by Law of Ukraine No. 1261-IX of February 19, 2022) (hereinafter – Law No. 674) is recognized as having lost its validity as of January 1, 2023.
Certain provisions of the Code contain commodity codes according to the 2017 version of UKT FEA, which were determined by Law No. 674 and, accordingly, require changes.
Taking into account the above, the draft law proposes to amend Article 14 of Chapter I, Article 165 of Chapter IV, Article 197 of Chapter V, Article 215 of Chapter VI, items 58, 59, 64, 641, 65, 78 of section 2 of Chapter XX, item 56 of section 4 of Chapter XX, items 17, 41, 44 of section 5 of Chapter XX, point 68.2 of item 68 and sub-point 69.51 of item 69 of section 10 of Chapter XX of the Tax Code, which make it possible to eliminate inconsistencies in the coding of commodity, in particular excise goods, and to avoid complications during the administration of value added tax, excise tax, corporate income tax and personal income tax.
In addition, the provisions of the draft law define procedures for pre-trial settlement of disputes between value-added tax payers (hereinafter – tax payers) and the supervisory body regarding decisions on disregarding the taxpayer’s data table and on the taxpayer’s compliance with the risk criteria.
The need to develop the draft law is also caused by the need to clarify certain provisions and eliminate technical inaccuracies that formally make full application of the Code’s norms impossible.
The Ministry of Finance of Ukraine, by Order No. 302 of June 7, 2023 (as amended by Order No. 353 of June 28, 2023), updated the income tax declaration.
The document was prepared in order to implement the provisions of Law of Ukraine No. 2888-IX of January 12, 2023 ‘On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine regarding Payment Services’.
We would like to remind you that Law No. 2888, in particular, sets forth in the new edition paragraph 2 of items 141.1.3 and paragraph 2 of item 141.1.4 of the Tax Code regarding:
- increase in the financial result before taxation by the positive difference between the gain (loss) formed in the relevant reporting period in accordance with international financial reporting standards by insurance reserves, except for those that do not affect the formation of the financial result before taxation of the insurer (minus the rights of claim to reinsurers in insurance reserves), and the increase (loss) of the corresponding reserves, calculated according to the methodology determined by the National Bank of Ukraine (after deducting the rights of claim to reinsurers in insurance reserves);
- reduction of the financial result before taxation by the negative difference between the gain (loss) formed in the relevant reporting period in accordance with international financial reporting standards by insurance reserves, except for those that do not affect the formation of the financial result before taxation of the insurer (minus the rights of claim to reinsurers in insurance reserves), and the increase (loss) of the corresponding reserves, calculated according to the methodology determined by the National Bank of Ukraine (after deducting claim rights to reinsurers in insurance reserves).
In this regard, the difference annex to the Tax Declaration is brought into line with the Tax Code.
In addition, cosmetic changes have been made to Diia application.
Since the annexes are a necessary component of the income declaration, income tax payers received an updated form again.
In accordance with item 46.6 of the Tax Code, new forms of declarations enter into force for reporting for the tax period that follows the tax period in which they were published.
Order No. 302 will enter into force from the day of its publication. If the Order is published in the 3rd quarter, we will first report using the updated form for the 4th quarter of 2023. But State Tax Service, as always, may have its own point of view.
The Cabinet of Ministers of Ukraine has shortened the list of products whose prices are regulated by the state. Thus, the CMU, by Resolution No. 650 of June 19, 2023, continued the state regulation of prices for certain types of food products during the period of martial law and three months after its termination.
For the period of martial law and three months after its termination or cancellation, the document sets the maximum level of trade allowance (markup) at the level of 10% for the following goods:
- high grade wheat flour,
- pasteurized milk with a fat content of 2.5% (in a package),
- rye-wheat bread,
- C1 category chicken eggs,
- poultry (chicken carcasses, quarters of chicken carcasses),
- a loaf of bread
- refined sunflower oil.
Thus, the following are excluded from the list: granulated sugar, pasta products of domestic production (vermicelli made from wheat flour of the highest grade), and butter with a fat content of 72.5%.
At the same time, the maximum term for making payments for delivered goods of domestic production, except for goods marked as organic products, namely: buckwheat, granulated sugar, pasta (vermicelli made from high-grade wheat flour), butter with a fat content of 72.5%, still mineral water and goods from the list of state regulations, no later than 10 calendar days after the supplier of such goods issues an invoice for payment for the supplied products.
The government also decided to cancel the procedure for declaring changes in retail prices for goods of significant social importance and anti-epidemic goods.
Resolution No. 650 entered into force on the day following the end of the quarantine established by the Cabinet of Ministers of Ukraine to prevent the spread of the acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus on the territory of Ukraine.
The State Tax Service of Ukraine has published new handbooks of benefits as of July 1, 2023, namely:
- Handbook No. 117/1 of tax benefits, which are losses of budget revenues;
- Handbook No. 117/2 of other tax benefits.
The mentioned Handbooks contain a list of benefits with their codes and terms of validity, in particular, corporate income tax; value added tax; land fee; real estate tax; excise tax, local taxes and fees.
It is worth noting that the accounting of the amounts of tax benefits received by business entities is carried out by the controlling authorities on the basis of the information available in the tax declarations submitted by such business entities.
The National Bank of Ukraine by Resolution No. 88 of June 30, 2023 ‘On Amendments to the Resolution of the Board of the National Bank of Ukraine No. 18 of February 24, 2022’ expands the list of exceptions from the current administrative restrictions in order to further stabilize the situation with the exchange of cash foreign currency.
Thus, since July 1, 2023, the National Bank has enabled non-banking financial institutions to withdraw national and foreign currency from their bank accounts without restrictions in terms of amount to reinforce their own cash registers or cash registers of separate divisions with cash.
This will help to expand the supply of foreign currency that does not show signs of significant wear or damage in the cash foreign exchange market, where citizens can buy and sell foreign currency. In addition, granting permission to non-bank financial institutions to withdraw cash hryvnia without restrictions will make it possible to maintain the hryvnia liquidity of the latter at an appropriate level, which is important for their smooth acceptance of cash foreign currency from citizens.
In this way, the NBU has provided a significant impetus for the further stabilization of the situation with the exchange of cash foreign currency. So, thanks to the introduced changes, non-banking financial institutions will have uninterrupted access to foreign currency cash without the signs of significant wear and tear that banks already have. Accordingly, this will have a positive effect on the state of cash foreign currency that citizens have access to.
In order for the granted permission to be used exclusively for the purpose of ensuring a stable situation on the foreign exchange market, the NBU defined the conditions that non-bank financial institutions must comply with.
Thus, the amount of cash withdrawn in hryvnia or foreign currency by a non-banking financial institution should not exceed the amount of funds in hryvnia or foreign currency that was previously credited to their bank account, in particular:
- a non-banking financial institution can credit the hryvnia account with funds received through currency exchange operations and from the sale of non-cash foreign currency;
- to an account in foreign currency – funds received from currency exchange operations and as compensation for foreign currency banknotes accepted for collection.
