The Cabinet of Ministers of Ukraine has announced that benefits for temporary disability, as well as in connection with pregnancy and childbirth will be verified. Verification of payments from the Social Insurance Fund of Ukraine (hereinafter – SIFU) will ensure the targeted use of funds and minimize the risk of errors in making payments. The verification will not affect the timing of funding from the Fund.
In the near future, technical issues of information exchange for verification will be worked out, a protocol and an updated agreement with the Ministry of Finance of Ukraine will be signed, and a mechanism for providing recommendations in case of discrepancies will be developed.
This was agreed on March 10 at a working meeting initiated by the Ministry of Social Policy of Ukraine. The event was attended by representatives of the SIFU, the Ministry of Finance and the Ministry of Social Policy.
Also during the round table of the Committee of the Verkhovna Rada of Ukraine on Social Policy and Protection of Veterans' Rights on March 11, the progress and problematic issues of verification implementation were discussed.
Verification of payments will be carried out for all types of material support and insurance payments of the Social Insurance Fund of Ukraine. In particular, preventive verification mechanisms will be introduced, which will prevent the implementation of non-target expenditures.
We will remind, earlier implementation of verification was begun for insurance payments which SIFU carries out for victims as a result of accidents at work or occupational diseases, and also members of their families.
The State Tax Service of Ukraine has reminded that the amendments introduced by Law of Ukraine No. 466-ІХ of January 16, 2020 to item 46.2 of the Tax Code of Ukraine (hereinafter – the Tax Code) provide that income taxpayers who in accordance with Law of Ukraine No. 996-XIV of July 16, 1999 ‘On Accounting and Financial Reporting in Ukraine” (hereinafter – Law No. 996) are required to publish annual financial statements and annual consolidated financial statements together with the auditor's report and submit to the supervisory authority:
- together with the tax return for the relevant annual tax (reporting) period, Statement of financial position (balance sheet) and Statement of profit and loss and other comprehensive income (statement of financial performance), prepared before the audit of the financial statements by the auditor;
- annual financial statements together with the auditor's report, which is subject to publication, no later than June 10 of the year following the reporting year.
However, since this change came into force on May 23, 2020, for the first time the rule of this item on the mandatory submission of annual financial statements together with the auditor's report no later than June 10 of the year following the reporting year applies in 2021 for the reporting year 2020.
In accordance with item 3 of Art. 14 of Law No. 996, depending on the category of the business entity, the financial statements together with the auditor's report must also submit:
- public interest entities (except for large enterprises that are not issuers of securities), public joint-stock companies, natural monopolies in the national market and business entities operating in the extractive industries – not later than April 30 of the year following the reporting period, must publish the annual financial statements and the annual consolidated financial statements together with the auditor's report on their website (in full) and in other ways in cases specified by law;
- large enterprises that are not issuers of securities, and medium-sized enterprises – no later than June 1 of the year following the reporting period, must publish annual financial statements together with the auditor's report on its website (in full);
- other financial institutions belonging to micro and small enterprises – no later than June 1 of the year following the reporting period, must publish the annual financial statements together with the auditor's report on its own website (in full).
In case of non-submission (late submission) of the annual financial statements together with the auditor's report, which is subject to disclosure, the sanctions provided for in item 120.1 of the Tax Code for the submission of tax returns (calculations) will be applied.
The fine provided by this norm is UAH 340, and for repeated violation (if such a fine has already been applied during the year) – UAH 1,020.
The State Tax Service of Ukraine in category 101.17 “ZIR” has answered the question “Can a taxpayer correct an error in filling in a complaint against the decision to refuse to register a tax invoice/adjustment calculation in URTI?”.
The taxpayer cannot correct the error made when filling in the complaint regarding the decision to refuse to register the tax invoice/adjustment calculation (hereinafter – TI/AC) in the Unified Register of Tax Invoices (hereinafter – the Complaint).
In case of receiving the second receipt with notification of errors, such payer eliminates them and within 10 working days from the day after the entry into force of the decision of the regional level commission to refuse registration of the tax invoice/adjustment calculation resends the Complaint to the State Tax Service.
For the period from March 18, 2020 to the end of the quarantine (the date of which will be determined by the relevant legislation), the deadlines (10 working days) for filing Complaints against the decision of the regional commission on refusal to register TI/AC in URTI accepted (date of decision-making) from March 3, 2020 and for which there are no complaints already submitted to the commission of the central level with the relevant decisions.
If after registration of the Complaint in the State Tax Service the payer finds an error in the data, which is not automated, then until the decision of the central level commission the payer has the right to send a statement of withdrawal of the Complaint and re-submit the Complaint to the central level commission.
The State Tax Service of Ukraine in category 109.04 “ZIR” has reported that consumer cooperatives during the activities in the village and agricultural producers who use their own products, have the right to make payments without the use of PTR/software PTR using settlement books and ledgers settlement operations, provided that the maximum amount of annual settlement operations for the sale of goods of each structural (separate) unit (point of sale of goods) of such enterprises will not exceed UAH 250 thousand.
In case of exceeding the specified amount, the business entity is obliged within one month from the date of exceeding the annual volume of settlement transaction to register PTR and/or SPTR and to make settlements using PTR and/or SPTR.
The State Tax Service of Ukraine in category 107.01.03 “ZIR” has answered the question “What amount is considered the income of the sole proprietor – payer of single tax (first – third groups) in the case of using payment terminals when making payments for goods (works, services): total revenue (taking into account the amount of the commission withheld by the bank) or the amount of revenue minus the amount of the commission withheld by the bank?”.
The procedure for applying the simplified system of taxation, accounting and reporting is defined in chapter 1 section XIV of the Tax Code of Ukraine (hereinafter – the Tax Code).
According to paragraph 1 item 292.1 of the Tax Code for a sole proprietor – payer of the single tax the income is the income received during the tax (reporting) period in monetary form (cash and/or non-cash); tangible or intangible form, defined by item 292.3 of the Tax Code.
The income does not include passive income received by such an individual in the form of interest, dividends, royalties, insurance payments and indemnities, income in the form of budget grants, as well as income from the sale of movable and immovable property owned by an individual and used in its business activity.
The amount of income of the single tax payer includes the value of goods (works, services) received free of charge during the reporting period (paragraph 1, item 292.3 of the Tax Code).
The date of receipt of the single taxpayer's income is the date of receipt of funds by the single taxpayer in monetary form (cash or non-cash), the date of signing the single taxpayer's act of acceptance-transfer of goods (works, services) received free of charge. For a single taxpayer of the third group, who is a value added tax payer, the date of receipt of income is the date of writing off accounts payable, for which the statute of limitations has expired (item 292.6 of the Tax Code).
Therefore, if during the settlements for goods (works of service) with the use of payment terminals from the amount of revenue the bank withholds a fee for settlement services, the income of asole proprietor – payer of the single tax is the total cost of goods sold (works, services) taking into account the interest (commission) of the bank.
The date of receipt of income is the date of receipt of funds on the current account of the single taxpayer.
