The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the Procedure for the Transition of Taxpayers of the Company Income Tax to the submission of a simplified tax declaration of such tax and a simplified tax declaration form of the Company Income Tax, which is taxed at the rate of 0 percent in accordance with paragraph 44 of subsection 4 of section XX “Transitional Provisions” of the Tax Code of Ukraine” of 09.08.17, No. 592 approved the form of a simplified tax declaration of the company income tax, which to be taxed at the rate of 0% in accordance with paragraph 44 of subsection of 4 of sec. ХХ of the Tax Code of Ukraine (hereinafter − TCU).
It should be recalled that from 01.01.17 to 31.12.21 zero rate of the income tax is to be applied by payers, whose annual income does not exceed UAH 3 million, the salary of employees accrued for each month of the reporting period is higher than 2 minimum wages and which meet one of the following criteria:
- registered after January 1, 2017;
- operating whose annual income did not exceed UAH 3 million during the three previous years, and the average number of employees amounts to 5−20 people;
- registered by the payers of the unified tax to January 1, 2017, and whose amount of proceeds from the sale of products was up to UAH 3 million in the last calendar year, and the average number of employees amounts to 5−50 people.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure for taxation of non-residents’ incomes in the form of interest on granted credits/loans, if such interests are not paid to a non-resident, but are taken into account in increasing the amount of credit/loan” of 25.07.17, No. 1343/6/99-99-15-02-02-15/ІПК reported that non-resident’s incomes with source of their origin from Ukraine in the form of interest should be taxed on repatriation in accordance with the provisions of para. 141.4 of TCU independently from the method of payment of such income, including by enrolment at the expense of increase of the authorized capital or amount of credit/loan.
At the same time, according to representatives of the fiscal department, the tax on non-residents’ incomes in the form of interest should be paid entering of the counter claims of the same kind.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the issues of taxation of the income tax, if a legal entity (employer) at his/her own expense organizes food (lunch) for individuals (employees)” of 02.08.17, No. 1454/6/99-99-13-02-03-15/ІПК explained: if the employer, at his own expense, arranges lunches for workers which sales price is lower than the cost, then the difference between the cost of food and the sale price should be included in the taxable income of taxpayers as an additional benefit and should be taxed by the income tax and the war tax. In addition, the amount of such a difference is the basis for the accrual of the unified contribution.
Representatives of the fiscal department argue their position, based on para. 164.2.17 of TCU, as well as the fact that the amount of the difference between the cost of organized meals and the sale price is not given in the List of types of payments, for which the unified contribution, approved by the Resolution of the Cabinet of Ministers of Ukraine dated 22.12.10, No. 1170 (hereinafter − List No. 1170), is not accrued.
As for the income tax and the war tax, the position of the fiscal department is more convincing, because sub-para. “e” of para. 164.2.17 of TCU provides for the inclusion in the additional benefit of the cost of goods received at regular prices, as well as the amount of the discount of the usual price individually assigned to such a taxpayer.
It should be recalled that, accruing the income tax for additional benefit, one should not forget about the “natural” coefficient.
The State Fiscal Service of Ukraine on the publicly available information resource (ZIR) in category 102.18 reported that a resident individual who pays to a non-resident legal entity income from a source of origin from Ukraine is obliged to withhold tax from such incomes and at their expense, unless otherwise provided by the provisions of the international agreement of Ukraine with the country of residence of the person for whom the benefit is paid (paragraph 141.4.2 of TCU).
At the same time, representatives of the fiscal department stressed that a resident individual on the basis of the reporting (tax) period (quarter, half year, three quarters, a year), in which he/she paid such income, should file a tax declaration on the company income tax, which form is approved by the order of the Ministry of Finance of Ukraine dated 20.10.15, No. 897. Line 23 and the annex of TI should be filled in it.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the necessity of registration of the Company by the payer of the excise tax, the statement and registration of the excise tax note in the case of the transactions of refuelling own fuel, leased, involved in the contract of equipment and the necessity of using cash register during the delivery of fuel” of 05.07.17, No. 998/6/99-99-15-03-03-15/ІПК responded to the question of compulsory registration of an economic entity by the taxpayer in case of the transaction of refuelling the leased fuel, as well as the equipment involved in contract work.
In the case of equipment lease (without crew and with crew), subject to acceptance for use in accordance with the act of acceptance-transfer, the entity will use the fuel exclusively for its own needs, namely for refuelling machinery that for a specified period of time was granted to him/her for use on conditions of Lease agreement. Such transactions are not the sale of fuel in the sense of the paragraph of the second subparagraph 14.1.212 of TCU. Consequently, company should not be registered by the excise tax on the sale of fuel.
However, when refuelling vehicles of third parties (executors) engaged by the customer under the terms of the contract or service contract, it should be made the transfer (release) of fuel from the customer to the contractor (executor), which is a transaction on the sale of fuel in the sense of paragraph 14.1.212 of TCU. Therefore, the customer during the implementation of such transactions is a person who sells fuel, and must be pre-registered as the payer of excise tax.
The Ministry of Finance of Ukraine in its letter “On Implementation of Certain Provisions of the Budget Code of Ukraine on the Calculation and Payment of Benefits” of 16.06.17, No. 09010-20-10/16034 reported that budget commitments for the payment of subsidies, assistance, payment privileges housing and utilities and communications services, compensations to citizens from the budget are accounted by the Treasury of Ukraine, regardless of the budget allocations determined for this purpose. The financing of expenses for the provision of benefits is carried out within the established social norms (standards) regardless of the amount of funds provided in the state or local budgets for the relevant year.
The Ministry of Finance of Ukraine by its Order “On Amendments to the Tax Declaration for Transport Tax” of 27.06.17, No. 595 approved an updated form of the tax declaration for the transport tax. In particular, taxpayers will have to inform tax officers in more details about their car. Now, the following should be indicated in a new declaration:
- type of fuel used by the passenger car;
- International Vehicle Identification Number (VIN-code).
It should be recalled that the transport tax should be paid by the individuals and legal entities who have their own cars registered in Ukraine in accordance with the current legislation, with a period of not more than five years (inclusive) and their average market value more than 375 sizes of minimal salary (established on January 1 of the reporting year).
The Ministry of Economic Development and Trade of Ukraine by its letter “On the implementation of procurement under separate parts of the procurement item (lots)” of 02.08.17, No. 3304-06/26774-06 clarified some aspects of the purchase of certain parts (lots) of goods, services or works in the unified procurement procedure.
In particular, the auction may be canceled in part (under lot). Also, the customer has the right to accept bids as failed in part (under lot). If the necessity of purchase has not disappeared, the customer carries out a new procurement, guided by the cost limits, tender legislation. If the cost of the purchase is less than these cost limits, the customer makes such purchase without the use of procurement procedures. At the same time, it is possible to volunteer use ProZorro electronic public procurement system.
The procurement contract should be concluded on the basis of the procurement procedure with the winner under each lot separately. If the winner of all lots is the same entity, the customer can conclude one procurement contract, provided that such possibility was provided by the tender documentation and the draft agreement.
The State Statistics Service of Ukraine by its order “On Approval of Forms of State Statistical Surveillance on Agricultural Product Sales by Agricultural Companies” of 12.07.17, No. 165, “On Approval of the Form of State Statistical Surveillance Regarding Plots, Gross Collection, and Productivity of Agricultural Cultures” of 17.07.17, No. 170, “On approval of the form of state statistical observation No. 2-farm (annual) “Report on expenditures on production of agricultural products (works, services)” of 21.07.17, No. 193 updated the following forms of statistical reports for agricultural companies:
- No. 21 (monthly) “Report on the implementation of agricultural products” − put into effect starting from the report for January 2018;
- No. 21 (annual) “Report on the implementation of agricultural products” − put into effect starting from the report for 2018;
- No. 29 (annual) “Report on the area and gross collections of crops, fruits, berries and grapes” − put into effect starting from the report as of December 1, 2017;
- No. 2-farms (annual) “Report on expenditures on production of agricultural products (works, services)” − put into effect starting from the report for 2017.
The State Service of Ukraine on Labor Affairs by it Order “On the Approval of the Procedure for Notifying Registration of Inspection Visits and the Labor Inspector decision on the Visit of the Employer” of 22.06.17, No. 76 approved the Procedure for the Notifying Registration of Inspection Visits and the decisions of the Labor Inspectorate on visiting the employer. The procedure determines the procedure for notification of registration of inspection visits and decisions of the labor inspector on visits of the employer.
The information about the visits of employers by the labor inspectors will be registered by the territorial authorities of the State Labor Organization, and in case if the company will be visited by inspectors from the apparatus of the State Labor Organization, registration of the visit will be conducted by the Department of Labor Affairs of the State Labor Organization.
The information about the visiting inspector and the site of visit will be entered into the Register of Inspection visits and the decisions of the Labor Inspectorate on the visit of the employer. Each visit is given a number, which consists of an appropriate index of region and the sequence number of the entry record on the visiting entered in the Register.
It should be recalled that labor inspection hide banal checks under beautiful formulation of “inspection visits”, obviously, to deprive this process of negative color.
