The Cabinet of Ministers of Ukraine approved the Procedure for prices range calculation (profitability) and the median of such range for transfer pricing purpose (hereinafter - Procedure) by the Resolution of 04.06.15, № 381.
It is developed to implement paragraphs 39.3.2.3 of the TCU, which determine the criteria according to which the price (or rate of profitability), applied in a controlled transaction, is in line with regular.
The lower and upper prices ranges (profitability) are calculated under this Procedure, and also the procedure for determining of median prices range (profitability). The latter is used if the price (profitability) of controlled transaction is outside the range instead of its minimum / maximum value (provided that use of the median not to lead to underestimation of the tax amount).
In its turn, the previous Procedure of calculation and application of market prices range and market profitability range for transfer pricing purpose approved by the CMU of 17.10.13, № 763 lost its validity.
The Cabinet of Ministers of Ukraine by the Resolution of 04.06.15, № 367 (comes into force on the day of its official publication) determined the Procedure for the crossing of the administrative border of the free economic zone “Crimea” when entry into temporarily occupied territory of Ukraine and departure from the country of citizens of Ukraine, foreigners and stateless persons.
Entry into temporarily occupied territory of Ukraine and departure from it should be through control points. Thus the citizens of Ukraine, who cross the administrative border, should present any document confirming citizenship of Ukraine, and those who have not reached the age of 16 - under the rules of the state border crossing for such persons.
Foreigners and stateless persons cross the administrative border with their passport documents and special permits. This permission is issued by the territorial authority of the State Migration Service of Ukraine. The cases, when they should issue such special permits, are also called.
Control points of entry into the temporarily occupied territory of Ukraine/ departure from it for road service are “Kalanchak”, “Chaplina”, “Chongar”. For railway service are “Kherson”, “Melitopol”, “Vadym”, “Novooleksiyivka”.
The State Fiscal Service of Ukraine in subcategory 301.04.01 ЗИР ГФСУ (zir.minrd.gov.ua) reported: even if the social insurance Fund delayed the payment of maternity leave, the employer to be obliged to pay withheld single contribution from the amount of accrued maternity benefit for relevant calendar month not later than the 20th day of the following month regardless of whether such amounts were actually paid or not after their accrual.
If the last day of payment of the single contribution accounts for weekend or holiday, the last day of such timing of payment of the single contribution should be the first working day following the weekend or holiday.
The Verkhovna Rada of Ukraine by the Law of Ukraine of 19.05.15, № 448-VIII (comes into force from the day following the day of its publication) amended the Law of Ukraine “On social and legal protection of military personnel and their families” of 20.12.91, № 2011-XII (hereinafter - the Law on social protection of military personnel). This time innovations related to the procedure, granting conditions and time length of leave for military personnel.
First, in case of failure to provide basic annual leaves to military personnel due to advent of special periods provided for by the paragraphs 17 and 18 of Art 101 of the Law on social protection of military personnel, such leaves should be provided next year. At the request of military personnel the basic annual leaves for two years could be combined, but total duration of the combined leave should not exceed 90 calendar days. The mentioned above leaves can be provided in several parts (more than two) without limitation of the duration of each of them.
Second, the duration of annual basic leave in a year of beginning of their service should be calculated at the rate of 1/12 of the length of such leave for each full month of service until the end of the calendar year - for military personnel, except for conscripts. It should be reminded that currently this regulation applies to all contract military personnel.
Third, at the request of military personnel, except cadets (trainee) of higher military educational institutions, the annual basic leave can be provided to them in parts, not more than two, on condition that its main continuous part is not less than 15 (currently 24) calendar days.
The State Fiscal Service of Ukraine said on its website about implementation of electronic service of exchange of adjustment calculations to TI between contractors. This service is implemented by the state financial control for VAT payers in order to assist them in the exchange of adjustment calculations to Tax Invoices (hereinafter – TI). This exchange is provided for by para.16 of the Resolution of the CMU of 16.10.14, № 569 “Some issues of electronic administration of value added tax”.
The adjustment calculations to TI drafted by the supplier should be registered in the Unified Register by the buyer, if the compensation amount of goods value (services) is decreased. In this case, the supplier sends the calculation to the buyer. The supplier is entitled to decrease the tax liability under the adjustments calculation only after its registration in the Single Register by the recipient.
The format of electronic adjustments calculation should meet the requirements of the Format (standard) of electronic document of business entities reporting approved by the Ministry of Revenue of Ukraine of 29.11.13, № 729.
Also it should be signed by certified means of electronic digital signature, which are currently used for signing and encrypting of electronic documents submitted to the SFSU.
The State Fiscal Service of Ukraine stated that individuals–entrepreneurs, who used fixed assets in their business activities, should not include into the expenses and VAT credit amounts paid due to their acquisition (construction) and withholding (see the SFS of Ukraine Letter “On accounting of fixed assets by individuals–entrepreneurs” of 06.01.15, № 167/6/99-99-17-02-15).
They explain it by the fact that individuals–entrepreneurs do not keep accounting and, accordingly, cannot account for fixed assets on the balance sheet, cannot determine their original cost value and residual value, as well as share of their use exactly in business activity.
In addition, controllers have reminded that the definition “individual” and “individual–entrepreneur” has a different tax status in the legislative conception.
However the individual, not the employer, acts as subject of the property right. The current legislation does not provide for reasons to consider the property, which is privately owned by individual, as capital assets of the business entity, if such citizen registered as an entrepreneur.
The Ministry of Social Policy of Ukraine in its letter of 27.05.15, № 7776/0/14-15/5 “On the right of certain categories of citizens to free travel in transportation utilities” reported: participants of the war, victims of Nazi persecution, persons born in time of war, labor veterans, for whom “status” benefits were canceled from 01.06.15, could use the right to free travel in urban and suburban transport under the general benefit as retirement pensioner or people with disabilities.
The municipal executive committees and local authorities should provide this right. The compensations for travel privilege in the form of subventions from the state budget to local budgets in the amount of UAH 1.9 billion (at last year’s level) is provided for in the budget of Ukraine for 2015 for this purpose.
It should be reminded that the Law of Ukraine dated 28.12.14, № 76-VIII “On amendments and invalidation of Certain Legislative Acts of Ukraine” of 01.06.15 canceled the right to free travel in urban and suburban transport of certain categories of citizens, in particular: labor veterans, persons born in time of war, participants of the war, victims of Nazi persecution, the family members of the victims (dead) Veterans of War, disabled people of group III and others.
At the same time, retirement pensioners and disabled people preserve the right to free travel in public municipal passenger transport (excluding metro and taxi) and suburban routes according to the CMU Resolutions “On free travel of pensioners in public transport” of 17.05.93, № 354 and “On extension into force the Resolution of the Cabinet of Ministers of Ukraine dated 17 May 1993, № 354” of 16.08.94, № 555.
