The Cabinet of Ministers of Ukraine has approved the Procedure for Access to Information Necessary for Verification and Monitoring of State Payments.
“Procedure for access to information in the information and analytical platform for electronic verification and monitoring of bodies making state payments” was adopted on December 28, 2020 in accordance with the Law of Ukraine “On Verification and Monitoring of State Payments” in order to enable bodies making state payments, receive by means of information-analytical platform in real time confirmation of compliance of information reported by recipients of state aid, legal requirements affecting the determination of their right to receive and the amount of state payments, or a recommendation to conduct additional verification of such information.
According to the Procedure, the bodies that make state payments will have access to information free of charge on the basis of an agreement with the Ministry of Finance. The head of such a body will also designate authorized persons to grant them access for the duration of their term of office.
The Ministry of Finance of Ukraine by Order No. 783 of December 17, 2020 amended the form of the tax return on property and income.
This order implements the rights of taxpayers to submit joint reports on personal income tax and a single contribution.
According to Law No. 466, a resident taxpayer recognized as a controlling person in respect of a controlled foreign company is obliged to determine a part of the controlled foreign company's profit in accordance with the Code, include it in the total taxable income reflected in the annual tax return on property and income (hereinafter – the return), and determine their tax liabilities. Therefore, it is necessary to supplement the return with information on the reflection of these incomes and tax liabilities, as well as to supplement the return with a separate annex to the CFC.
Laws No. 115 and 116 stipulate that the submission of reports on the accrual of a single social contribution is carried out as part of the reporting of personal income tax, in connection with which there is a need to supplement the return with additional separate annexes SSC 1, SSC 2 and SSC 3 and separate the single contribution liabilities in the return for:
- sole proprietors in the general taxation system;
- persons engaged in independent professional activity;
- members of the farm, if they do not belong to persons who are subject to insurance on other grounds;
- persons who pay a single contribution under the terms of the agreement on voluntary participation in the mandatory state pension insurance.
Order No. 783 stipulates that the tax return on property and income in the wording of this order will be filed from January 1, 2022.
The Ministry of Finance of Ukraine by Order No. 842 of December 31, 2020 approved the Generalized Tax Consultation on some issues of value added tax (hereinafter – VAT) transactions for the supply of software products.
The consultation provides an answer to the question of whether transactions for the supply of various types of software products will be exempt from VAT.
In particular, it is clarified that transactions on delivery of computer programming results in the form of sites and/or online services and access to them, in case of transfer of intellectual property rights to such objects to the customer, will be exempt from VAT.
At the same time, transactions for the supply of systems and/or machinery/equipment, which are part of software products without allocating a separate value, are subject to VAT in the generally established manner.
The Ministry of Finance of Ukraine by Order No. 773 of December 15, 2020 approved a new form of tax calculation of the amounts of income accrued (paid) in favor of taxpayers - individuals, and the amounts of tax withheld from them, as well as the amounts of accrued single social contribution (hereinafter – SSC). Thus, usual form No. 1DF is supplemented by information on the accrual of SSC.
The tax calculation under the new form must be submitted for the first time in the first quarter of 2021.
The calculation is submitted separately for each quarter (tax period) broken down by months of the reporting quarter within 40 calendar days following the last calendar day of the reporting quarter. A separate calculation for a calendar year is not submitted.
The statements consist of the Calculation and its annexes:
- Annex 1 (A1) “Information on the accrual of wages (income, cash benefits) to insured persons”;
- Annex 2 (A2) is formed and submitted only by district (city) departments of labor and social protection;
- Annex 3 (A3) “Information on persons serving in the military”;
- Annex 4 (A4) “Information on the amounts of accrued income, withheld and paid personal income tax and military duty”;
- Annex 5 (A5) “Information on labor relations of persons and the period of military service”;
- Annex 6 (A6) “Information on the existence of grounds for accounting for seniority of certain categories of persons in accordance with the law”.
The State Tax Service of Ukraine has reported that from January 1, 2021 in accordance with item 296.1 of Art. 296 of the Tax Code of Ukraine accounting in any form by monthly reflection of income is provided for sole proprietors – payers of the single tax of the first and second groups and payers of the single tax of the third group, who are not VAT payers.
For sole proprietors – payers of the single tax of the third group, who are VAT payers, accounting is provided in any form by monthly reflection of income and expenses.
It is determined that the accounting of income and expenses may be conducted at the discretion of the single tax payers in paper and/or electronic arbitrary form.
If desired, taxpayers of the first – third groups of the single tax may continue to keep records of income in the books in predetermined forms.
Registration of books in the supervisory authorities is canceled from January 1, 2021 on the basis of amendments to Order of the Ministry of Finance of Ukraine “On repealing Order of the Ministry of Finance of Ukraine No. 579 of June 19, 2015” No. 728 of November 26, registered in the Ministry of Justice of Ukraine under No. 1240/35523 of December 11, 2020.
The State Tax Service of Ukraine has reported that from January 1, 2021 to January 1, 2022 the payment transactions recorders (hereinafter – PTR) and/or software payment transactions recorders (hereinafter – SPTR) are not used by single tax payers of the second - fourth groups (sole proprietors), whose income during the calendar year does not exceed 220 times the minimum wage established by law on January 1 of the tax (reporting) year (UAH 1,320,000), regardless of the chosen type of activity, except for those who carry out:
- sale of technically complex household goods subject to warranty repair;
- sale of medicines, medical devices and provision of paid services in the field of health care;
- sale of jewelry and household products made of precious metals, precious stones, precious stones of organogenic formation and semi-precious stones.
The Ministry of Finance of Ukraine by Order No. 729 of November 27, 2020 approved new forms of the following documents:
- Excise invoice form “P”
- Excise invoice form “S”
- Calculation of adjustment of excise invoice form “P”
- Calculation of adjustment of excise invoice form “S”
- Application for replenishment (adjustment) of the fuel balance
- Application for replenishment (adjustment) of ethyl alcohol residue
In addition, a new procedure for filling in the excise invoice, calculating the adjustment of the excise invoice, applications for replenishment (adjustment) of fuel balance, applications for replenishment (adjustment) of ethyl alcohol balance was approved.
The new forms of documents will take effect on January 27, 2021.
The National Bank of Ukraine has published an annual plan of inspections on financial monitoring, compliance with currency and sanctions legislation for 2021. The National Bank has planned inspections in 17 banks and 32 non-banking institutions.
The annual plan of on-site inspections is based on a risk-oriented approach based on the results of the risk assessment of banks and non-banking institutions.
The annual plan is published in accordance with the requirements of Regulations on the organization and implementation of supervision in the field of financial monitoring, currency supervision, supervision of implementation and monitoring of personal special economic and other restrictive measures (sanctions) (item 11, Chapter II), approved by the Board Of the National Bank of Ukraine No. 90 of June 30, 2020.
Об’єктами безвиїзного нагляду є:
The National Bank of Ukraine by Resolution of the Management Board No. 169 of December 28, 2020 approved the Regulations on the Procedure for Off-Site Supervision of Participants in Non-Bank Financial Services Markets. This will allow the regulator to effectively and systematically carry out off-site supervision, receive up-to-date information about the market, prevent offenses and communicate with market participants in a timely manner.
Objects of off-site supervision are:
- non-bank financial institutions;
- financial service providers that are not financial institutions;
- intermediaries in financial services markets;
- sole proprietors – providers of financial services;
- permanent representative offices in the form of branches of foreign insurance companies;
- non-bank financial groups.
The National Bank will carry out off-site supervision on a regular basis. To this end, the National Bank will regularly assess the overall financial condition, performance and quality of corporate governance, internal audit and risk management systems, compliance with mandatory regulations and other requirements. Meetings may be held with holders of substantial share and leaders of market participants to discuss issues that may arise during off-site supervision.
The National Bank of Ukraine in letter No. 57-0009/80572 dated December 30, 2020 at the request of the Ministry of Economic Development confirmed that payment for goods (services) through Privat24, Oschad24, MONOBANK, Liqpay by transferring funds from the account at the request of the client is a banking transaction.
A similar position was taken before. From the NBU's point of view, non-cash payments include transfers using money transfer services (Liqpay, Portmone, iPay, etc.), remote banking systems such as Privat24, MONOBANK, Oschad24/7, etc. (including using a payment card) by the buyer depositing cash at the cash desk of a bank or non-banking institution (including through the use of software and hardware self-service. It can be found in letter of the NBU No. 57-0009/53844 dated September 28, 2020.
The NBU asked to take these requirements into account when providing tax advice to taxpayers.
The STSU interpreted settlements with the help of such services as settlement transactions within the meaning of the Law on PTR and required the recipients of the transfer for goods (services) to receive a fiscal check.
On December 29, 2020, the STSU press service confirmed only the fact that consumers, using the Internet, order services and pay for them exclusively using electronic payment instruments and payment systems (LiqPay, Portmone, EasyPay, PayPong, Ipay.ua, City24, Privat24, etc.), such transactions are performed without the use of PTR by the service provider.
This followed after from December 10, 2020 due to the Law No. 1071 the PTR is not required for payments for services, if such payments are made exclusively through banking systems of remote service and/or money transfer services.
