The Ministry of Finance of Ukraine prepared a draft of amendments to NAS 21 "The Effects of Changes in Foreign Exchange Rates". On the website of the Ministry of Finance, the draft of the Order "On Amendments to the National Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates" (hereinafter – the Order) was published.
The draft order was prepared with the aim of bringing some norms of the National Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates", approved by Order of the Ministry of Finance No. 193 of August 10, 2000, into compliance with current legislation and international financial reporting standards, in particular the International Financial Reporting Standard reporting for small and medium-sized enterprises and International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates".
The draft order proposes bringing the issue of forming accounting information about operations in foreign currencies into compliance with the requirements of the International Financial Reporting Standard for Small and Medium Enterprises and International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates".
The Ministry of Finance of Ukraine has worked out changes to the forms of declarations of single tax payers of groups III and IV. The draft order of the Ministry of Finance "On Approval of Changes to the Forms of Tax Declarations of a Single Tax Payer" is posted on the official website of the State Tax Service.
The draft order proposes to make changes to the forms of:
- tax declaration of the payer of the single tax of the third group (legal entities);
- tax declaration of the payer of the single tax of the fourth group.
The changes were developed with the aim of simplifying tax reporting for the single tax payers in connection with the automation of the procedure for accepting and processing tax reporting, in particular
- elimination of the need for self-calculation of penalties by single tax payers (the relevant lines are excluded from the declaration forms);
- exclusion from the tax declaration of the position regarding the conduct of a chamber audit of this tax declaration and the organizational and legal form of business by an official of the controlling body (the corresponding block is excluded from the declaration forms);
- line "Registration number of the declaration in the controlling body, which is being clarified" is added (this line is placed in the "head" of the declarations).
The State Tax Service of Ukraine, by Order No. 641 of September 10, 2024, updated the edition of the State Register of Taxpayers.
The state register of the cash registers consists of two sections:
1. Registers of settlement operations, allowed for initial registration, which contains 78 models.
2. Registers of settlement operations, the primary registration of which is prohibited, which contains 130 models.
The National Bank of Ukraine, by Resolution No. 108 of September 6, 2024 "On Amendments to the Resolution of the Board of the National Bank of Ukraine No. 18 of February 24, 2022," amended the current currency restrictions.
On the one hand, the National Bank of Ukraine is relaxing a number of restrictions, and on the other hand, it is taking measures to counter the unproductive outflow of capital from Ukraine.
Easing currency restrictions will support the country's defense capability, the work of Ukrainian enterprises and the Nuclear Insurance Pool.
Among the directions undergoing changes:
- purchase and transfer of foreign currency to cover carbon dioxide emissions.
State-owned enterprises will be able to purchase currency and transfer it to non-residents to purchase allowances to cover or offset carbon dioxide (CO₂) emissions associated with aviation activities. This will contribute to the smoothness of defense purchases under state contracts, will make it possible to continue to carry out air transportation abroad, and will also support Ukrainian-European military-technical cooperation;
- payments for operations provided for by the reinsurance contract concluded with foreign nuclear insurance pools.
The changes provide an opportunity to make all necessary payments provided for by reinsurance contracts concluded with foreign nuclear insurance pools (in addition to reinsurance premiums or payments already allowed today). In particular, to pay a break-even bonus, which is a mandatory condition defined by the reinsurance contract. This mitigation will have a minor impact on international reserves and at the same time will allow the Nuclear Insurance Pool to fulfill obligations to partners, which is important for the smooth operation of the industry;
- purchase and transfer of foreign currency by resident legal entities that are subjects of electronic commerce for the payment of VAT in the EU.
The National Bank of Ukraine will enable e-commerce entities to buy and transfer foreign currency abroad to pay VAT on purchases of goods from Ukrainian manufacturers by consumers from EU countries. The condition for carrying out these operations is that the subject of electronic commerce must be registered as a taxpayer in the EU.
Such easing will primarily support small and medium-sized businesses, which will be able to promote their own goods on the EU market thanks to trading platforms. At the same time, this will not have a negative impact on international reserves, because the inflow of foreign currency to Ukraine for the sold goods will significantly exceed the additional demand for foreign currency to pay VAT in the EU;
- compensation of paid coupon payments on Eurobonds.
In addition to the already existing opportunities introduced in May and July , the NBU will enable businesses to reimburse coupon payments on Eurobonds that were paid from February 24, 2022 to July 9, 2024 (inclusive). Such transfers are allowed exclusively at the expense of the business's own foreign currency (not purchased and not raised in the form of a credit or loan from a resident), therefore, it will not have a negative impact on international reserves.
These operations will to be carried out only by those enterprises that have no cases of incomplete foreign exchange supervision of operations on the export of goods during the 12 months preceding the date of the operation. This will stimulate businesses to timely return foreign exchange earnings to Ukraine for exporting goods.
Strengthening currency restrictions will make it possible to prevent unproductive outflow of capital from the country.
For its part, this will contribute to the preservation of international reserves at a sufficient level, which is important both for protecting the stability of the foreign exchange market and for faster movement in the direction of easing currency restrictions.
The strengthening of restrictions will apply to payments abroad using payment cards issued by Ukrainian banks to accounts in foreign currency, to pay for a number of goods and services, in particular:
- watches, jewelry, silverware, precious stones, coins, etc. abroad.
The NBU sets a monthly limit of UAH 100,000 equivalent for payments abroad made using payment cards opened by Ukrainian banks for accounts in foreign currency, for transactions with merchant codes 5094 (precious stones, metals and jewelry), 5944 (watches, jewelry and silverware) and 5972 (coin and stamps). This limit corresponds to the general limit established by the NBU for payments abroad with payment cards issued by Ukrainian banks for accounts in the national currency.
The necessity of this measure was confirmed by the analysis carried out by the NBU with the involvement of banks and payment systems. It confirmed the existence of attempts to avoid the restriction on the purchase of bank metals outside of Ukraine, established by the NBU during the period of martial law;
- transactions with agents and real estate managers abroad.
A monthly limit of UAH 500,000 equivalent is established for payments abroad made using payment cards opened by Ukrainian banks for foreign currency accounts, for transactions with merchant code 6513 (real estate agents and managers). Transactions with this code are used to pay management fees, accommodation fees and related fees.
The limit of UAH 500,000 takes into account the needs of Ukrainians who are outside Ukraine or traveling abroad, and meets the needs of 98% of clients of banks that carry out these operations. It will make it possible to prevent attempts to circumvent the NBU's restrictions on relevant operations and to avoid the outflow of capital from Ukraine in significant volumes.
The Cabinet of Ministers of Ukraine adopted Resolution "On Amendments to Resolutions of the Cabinet of Ministers of Ukraine No. 43 of February 3, 2016 and No. 1110 of October 25, 2017", the draft of which was developed by the Ministry of Finance together with the State Audit Service.
The decision of the Government regulates the issue of coordinating the fight against fraud with the funds of the European Union, as well as improves the mechanism of interdepartmental interaction of the State Audit Service .
First of all, it is about the organization of the work of the State Audit Service as the Anti-Fraud Coordination Service for the organization of interaction with the European Anti-Fraud Office (OLAF).
Thus, the amendments to the Regulations on the State Audit Service:
- authorize the State Audit Service to carry out the function of the Anti-Fraud Coordination Service;
- expand the department's authority to consider appeals (applications, complaints, etc.) and provide clarifications on combating fraud with EU funds, corruption and any other violations that negatively affect the financial interests of the EU.
In addition, the Procedure for implementing the mechanism of interdepartmental cooperation is supplemented by the powers of the Anti-Fraud Coordination Service, such as:
- management of the development and implementation of the National Strategy for the protection of EU financial interests with preliminary risk assessment;
- development of proposals for other relevant legislative and regulatory acts;
- facilitating administrative investigations (on-site inspections and inspections) by OLAF.
