The President of Ukraine signed the Law of Ukraine “On State Control over Compliance with the Legislation on Food Products, Forages, Animal Origin by-products, Health and Welfare of Animals” of 18.05.17, No. 2042-VIII, which entered into force on July 04, 2017. Insufficient control over the production process and the quality of food products (especially of animal origin) created obstacles for Ukrainian producers to enter the markets of solvent states for a long time. A similar problem was related to the import of food products into Ukraine, which threatened the health of Ukrainian citizens.
In order to eliminate these barriers and avoid mass food poisoning, this regulatory act introduced an effective system of state control to verify compliance by market operators with the Legislation on Food Products, Forages, Health and Welfare of Animals, as well as Animal Origin Products during importation (forwarding) of such by-products into the customs territory of Ukraine.
The Cabinet of Ministers of Ukraine adopted the Resolution “On Amendments to the Procedure for the Provision of Monthly Targeted Assistance to Internally Displaced Persons for the Payment of Housing and Communal Services of 04.07.17, No. 453, which amended the mentioned above Procedure. As it is known, if one of the family members of the immigrants owns housing located in other regions than the temporarily occupied territory, ATO areas and settlements located on the collision line, then targeted assistance should not be provided to cover the cost of living. From now on, the Government has made an amendment to this rule: this limitation shall not apply to the family, composed of soldiers from among persons who defend the independence, sovereignty and territorial integrity of Ukraine and are directly involved in the ATO, ensuring its implementation, while directly in areas of antiterrorist operation.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On accrual of Depreciation on Mortgage immovable property, located in Donetsk, which is not used in the economic activity of the taxpayer” of 15.06.17, No. 675/6/99-99-15-02-02-15/ІПК clarified that immovable property in the ATO zone, which the taxpayer did not use in economic activities, to be not the subject to tax depreciation. Similarly, this property should not be depreciated in the tax-profitable account and in the period of its conservation.
Consequently, fixed assets (hereinafter − FA) in the ATO zone were actually equated to non-productive FA by the representatives of the fiscal department.
Non-productive FA are fixed assets not intended for use in the economic activity of the taxpayer.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the Recalculation of Personal Income Tax” of 21.06.17, No. 752/6/99-99-13-01-01-15/ІПК reported that when individual sells housing for the first time in a year, and such an object was owned by him/her for more than three years, then the income received should not be taxed. Thus, the legal entity - buyer should not withhold the income tax and the war tax from such payment. If the tax was wrongly withheld, then the error can be corrected by calculation according to the procedure of sub-para. 169.4.3 of the Tax Code of Ukraine. And in order to correct the error it is enough to indicate withheld excess tax in columns 4 and 4awith the sign “minus”, and it is required to submit the clarifying calculation.
The tax agent has the right to return or calculate in or towards payment of subsequent payments only the amount of excess tax paid, which was transferred to the budget over accrued amounts of monetary obligations, the deadline of payment of which occurred on such a date.
The State Fiscal Service of Ukraine in the individual tax consultation “On the adjustment of the financial results before taxation for 2016-2017 on the difference arising as expenses for the payment of vacations” of 23.06.17, No.809/6/99-99-15-02-02-15/ІПК clarified that payers of the income tax had the right to take into account in the object of taxation of the expenses for payment of vacations to employees and other payments related to wages, which were repaid after 01.01.15 at the expense of reserves and provisions formed before 01.01.15. Of course, if these costs were not taken into account when determining the object of taxation to 01.01.15. Such a right to take into account the “old” vacation is given by para.24 of sub-sec.4 of sec. XX of TCU.
According to tax officials, those taxpayers who report in non-adjusting regime have the right to take these costs into account.
The corresponding expenses should be reflected in line 4.2.11 of Annex PI to line 03 PI of The corporate income tax return, approved by the Order of the Ministry of Finance of Ukraine of 20.10.15, No. 897 (as amended by the Order of the Ministry of Finance of Ukraine dated April 28, 17, No. 467).
The State Fiscal Service of Ukraine in the Individual Tax Advice “On Taxation of the Excise Tax” of 23.06.17, No. 813/6/99-99-15-03-03-15/ІПК informed about the excise consequences of the use of self-identified fuel surplus. Representatives of the fiscal department stressed that when shipping such fuel (including for the purpose of own consumption), if its receipt was not confirmed by the registered excise tax invoice, the company must pay the excise tax. The amount of tax should be calculated for the corresponding amount (surplus) of fuel at the rates provided for in paragraphs. 215.3.4 of TCU.
The object of taxation of the excise tax, in particular, arises in the company if the volumes of sold (spent) fuel exceed the volumes of received fuel from other tax payers of the excise tax, which is confirmed by registered excise invoices in UREI.
In case if the volumes of the sold (spent) fuel by the company do not exceed the amount of the received fuel from other payers of the excise tax, which is confirmed by registered excise invoices in UREI, then the subject to taxation will not arise when such an operation.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On Reflection of expenses, related to economic activity, in the Book of Income and Expenses of Taxpayers of the Unified Tax of the Third Group, which are VAT payers” of 27.06.17, No. 845/Ж/99-99-13-01-02-14/ІПК allowed the entrepreneur-unified tax payer, who carried out passenger transportation, to include incoming VAT on purchased spare parts, accumulators, tires and bus glass in the tax credit. Interestingly, the representatives of the fiscal department did not mention their traditional requirement - keeping records of expenses by the entrepreneur. They finally admitted that entrepreneur needs only registered tax invoice to reflect a tax credit.
The State Fiscal Service of Ukraine in its letter “On filling in the new form of the declaration on corporate income tax” of 30.06.17 No. 16989/7/99-99-15-02-01-17 explained the main changes in the form of the corporate income tax return approved by the order of the Ministry of Finance of Ukraine dated 20.10.15, No. 897. It should be reminded: such changes were made by the order of the Ministry of Finance of Ukraine dated April 28, 177, No. 467.
Representatives of the fiscal department noted that the Annex PI from 01.01.17 was supplemented with new differences, in connection with which the editorial board changed the names of individual differences and the numbering of line codes. Major amendments to the Annex are the following:
- Differences, which arise when the calculation of depreciation, were supplemented with new differences: which increase the financial result (para. 1.1.3, para. 1.1.4) and reduce the financial result (para. 1.2.3).
- Differences, which arise when the formation of provisions (reserves), were subject to editorial changes and were supplemented with a new difference, which reduces the financial result (para. 2.2.3).
- Differences, which arise when the financial transactions, were subject to significant editorial changes and are supplemented with new differences that increase the financial result (para. 3.1.10, para. 3.1.11 and para. 3.1.12).
The tax authorities also recommend to the income tax payers, who report quarterly for the reporting (tax) period - half of this year, to file a tax declaration for an updated form.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the Formation of Costs by the Individual-Entrepreneur in the General System of Taxation” of 29.06.17 No. 894/О/99-99-13-01-02-14/ІПК noted: Individual-Entrepreneurs, which are in the general system of taxation, may include depreciation of FA purchased or manufactured after 01.01.17 in their expenses.
In this case, the expenses of acquiring or manufacturing such FAs must be supported by relevant documents.
Thus, there is no need to calculate tax amortization for FA, received by entrepreneurs to 2017.
The cost of self-employed individual does not include the cost of purchasing or self-producing of such FA.
The National Bank of Ukraine prepared a draft regulation of the Board of the National Bank of Ukraine “On Amendments to the Regulation on the Conduct of Cash Transactions in the National Currency in Ukraine”. This is stated on the official website of the National Bank.
The draft regulation provides for:
- to grant the right to economic entities to independently develop and approve the procedure of cash entering in accounting records by the inner order in their cash registers;
- to improve the procedure for calculating the cash register limit of the enterprise;
- to allow the issue of cash under the report for the purchase of scrap of ferrous and non-ferrous metal scrap for a period not exceeding 30 working days from the date of their issue.
