December 9 – 13, 2019. The Ministry of Finance of Ukraine has approved changes to income tax return

The Ministry of Finance of Ukraine approved the amendments to the form of the corporate income tax return, approved by the order of the Ministry of Finance of Ukraine No. 897 of October 20, 2015.

These changes include, in particular:

• supplements to the income tax return with a new addition to the income tax “Information on tax benefits amounts¹”, which will be submitted by taxpayers who do not pay tax in connection with the receipt of tax benefits, in accordance with resolution of the Cabinet of Ministers No. 1233 of December 27, 2010;
• supplements to the income tax return with the new lines to reflect tax liabilities, other penalties and charges, determined in accordance with the Tax Code of Ukraine (hereinafter – TCU), unrelated to the correction of errors (lines 35–37). The value of the new line 35 should be taken into account in the calculation of the indicator of line 26. Also similar is line 35 “The amount of increase of tax liability for violation of the requirements of purposeful use of tax exempted assets in accordance with items 142.1–142.3 of article 142 of section III, item 41 of subdivision 4 of chapter XX of the Tax Code of Ukraine” will appear in Table 1 of Annex VI of the correction of errors and will be taken into account in other indicators of this Annex;
• supplements to the table on the availability of annexes with a column to mark the presence of a new addition to the income tax, as well as division of the column “ФЗ¹²” into two columns for the marking of financial reporting under NAS or IFRS;
• definition in Note 1 to Annex to TI that in the lines “Full name of non-resident¹” and “Location of non-resident¹” of this annex indicates the full name of non-resident, location of non-resident specified in the contract/agreement;
• exclusion from table 1 of Annex to TI of line 12 “Contributions and premiums for insurance or reinsurance of risks in Ukraine or insurance of residents from risks outside Ukraine”;
• supplements to the correction of errors annex with the third table on the presence of the annexes attached to the declaration – financial reporting forms for the reporting (tax) period to be specified;
• presentation in the revised version of the names of differences in lines 3.1.6, 3.1.6.1, 3.1.6.2 and 3.1.7 of the differences annex to the declaration, as well as supplement to this annex in the section “Other differences” with the new line 4.1.4.1 to reflect the positive difference between the sum of any payments (remuneration) to insurance intermediaries and other persons and the amount of the standard of such expenses stipulated by subitem 141.1.3 of the TCU.

These changes were approved by Order of the Ministry of Finance No. 481 dated November 14, 2019. This order enters into force from the date of its official publication, except for the amendments to the differences annex and the new annex to the income tax, which come into force on January 1, 2020.

According to item 46.6 of the TCU, new forms of declarations (settlements) are applied from the period following the publication.

So, if these changes are made public this month (December 2019), it is necessary to report for the first time on the updated income tax return for the periods from January 1, 2020 according to the TCU.

However, as practice shows, tax officials often ignore this rule. Therefore, it is likely that tax authorities will insist on reporting on an updated return form for the current reporting periods.

The State Tax Service of Ukraine through the Office of Large Taxpayers informed on the responsibility for late payment of income tax.

The taxpayer is obliged to pay taxes and fees within the time limits and in the amounts established by the TCU.

The tax liability recognizes the duty of the taxpayer to calculate, declare and/or pay the amount of tax and charge in the order and within the time limits specified by the TCU. This duty is incurred by the payer for each tax and charge.

The taxpayer is responsible for the failure or improper performance of the tax obligation.

At the same time, for violation of taxation laws, financial responsibility is established, which is applied in the form of penal (financial) sanctions (penalties) and/or fines (Article 111 of the TCU).

Fine is a sum of money in the form of interest accrued on the amount of monetary liabilities and not paid within the time limit specified by law (par. 14.1.162 of the TCU). The procedure for calculating the penalty is defined in Art. 129 of the TCU.

If the taxpayer does not pay the agreed amount of the monetary obligation within the specified terms, such taxpayer shall be liable in the form of a fine in the following amounts:

• in the event of a delay of up to 30 calendar days inclusive, following the last day of the term of payment of the amount of the monetary obligation, in the amount of 10% of the repaid amount of the tax debt;
• in the event of a delay of more than 30 calendar days following the last day of payment of the amount of the monetary obligation, in the amount of 20% of the repaid amount of the tax debt (Article 126 of the TCU).

The State Labor Service of Ukraine has provided clarification on the provision of medical workers' overalls. According to Art. 163 of the Labor Code (hereinafter – LCU) and Art. 8 of the Law of Ukraine “On occupational safety” for work with hazardous and dangerous working conditions, as well as work related to contamination or carried out in unfavorable temperature conditions, the employees are given special clothing, special footwear and other personal protective equipment free of charge under the established standards.

The employer is obliged to ensure, at his own expense, the purchase, acquisition, issuance and maintenance of personal protective equipment in accordance with regulations on labor protection and the collective agreement.

Order of the Ministry of Social Policy No. 1804 of November 29, 2018, approved the Minimum safety and health requirements for the use of personal protective equipment by employees. Pursuant to item 4 of part II, “General obligations of employers” of this Order, the employees of general (cross-cutting) occupations of different industries are given personal protective equipment regardless of the type of economic activity of the enterprise, except when these professions and positions (professional titles of work) are provided. in the relevant Norms for the free issuance of PPEs, taking into account specific working conditions.

The financing and volumes of measures on labor protection are determined in accordance with Art. 19 of the Law and Resolutions of the Cabinet of Ministers “On approval of the list of measures and means of occupational safety and health” No. 994 of June 27, 2003. Indeed, according to this article the financing of preventive measures on labor protection, implementation of national, sectoral and regional programs for improving the state of safety, occupational hygiene and the production environment, other government programs aimed at preventing accidents and occupational diseases, are envisaged, together with other sources of funding specified by law, in the state and local budgets.

For enterprises, irrespective of its form of ownership, or individuals who use hired labor in accordance with the law, labor costs represent at least 0.5% of the previous year's payroll budget.

At the enterprises financed at the expense of the budget, the amount of labor protection costs is set in a collective agreement taking into account the financial capabilities of the enterprise, institution, organization.

The list of measures and means of labor protection approved by the Cabinet of Ministers Resolution No. 994 of June 27, 2003, in particular, stipulates the provision of workers with special clothing, shoes and personal protective equipment in accordance with the norms established by the legislation on labor protection and collective agreement or treaty (including provision of detergents and agents that counteract the harmful effect on the body or the skin of hazardous substances in connection with the performance of works that do not exclude the possibility of contamination by these substances). Pursuant to item 2 of this regulation, the amount and sources of financing of labor costs are determined in the collective agreement or treaty.

Given the abovementioned, as well as the Standard industry rules for the free issuance of clothing, special footwear and other personal protective equipment for workers and employees of health care and social security institutions of medical research institutions and educational institutions, the production of bacterial and biological substances, materials, materials, manuals on the procurement, cultivation and treatment of medical leeches are recognized as not applicable in the territory of Ukraine in accordance with the decree of the Cabinet of Ministers No. 1022-p of December 18, 2017, p. It is advisable to decide on the issue of special clothing, special footwear and other personal protective equipment, including medical professionals, in a collective agreement or treaty.