The Cabinet of Ministers of Ukraine has approved a bill that unifies 122 administrative procedures in accordance with European standards.
The project proposes to amend 122 legislative acts and bring them into line with the Law on Administrative Procedure (LAP), which will enter into force on December 15 of this year.
The general administrative procedure should become an algorithm for quick and predictable actions both in terms of providing and receiving public services. And, the Law on Administrative Procedure will allow for the first time at the legislative level to regulate the entire set of multi-faceted relations between the state and physical and legal entities.
The bill minimizes the duplication of norms and special procedures, unifies administrative procedures as much as possible, so that citizens and businesses have the same algorithm of relations with the state. This will contribute to the approximation of Ukrainian legislation to European standards.
The Cabinet of Ministers of Ukraine further simplifies the state export control procedures for manufacturers of ammunition and combat parts for unmanned systems. The simplification will apply to manufacturers included in the register of state contract executors in accordance with the resolution "On the implementation of an experimental project on the production, procurement and supply of ammunition for unmanned systems and combat parts of unmanned systems."
The rules will be valid for the duration of the experimental project.
The President of Ukraine has signed bill No. 9534, which provides for the opening of officials' declarations immediately after the restoration of e-declaration, and not after a year. This is proved by the card of the bill on the website of the Verkhovna Rada.
The Verkhovna Rada of Ukraine has approved the law on e-declaration (No. 9534 of July 26, 2023) subject to the veto of President Volodymyr Zelenskyi. Electronic declarations will be opened.
People's deputies made the relevant decision at a meeting on September 20. 341 parliamentarians supported the President's proposal.
The Antimonopoly Committee of Ukraine has approved the project of the Procedure for exemption from liability for violation of the legislation on the protection of economic competition in the form of anticompetitive concerted actions.
The procedure is designed to improve the application of the procedure for exemption from liability for anticompetitive concerted actions of business entities cooperating with the bodies of the Committee, increase its efficiency and effectiveness, and bring it into line with the updated provisions of the Law of Ukraine "On the Protection of Economic Competition" and the legislation of the European Union.
The updated procedure for the application of the exemption from liability procedure provides transparent and clear conditions and grounds on which business entities can obtain both a full exemption from liability through cooperation with the Committee's bodies and a partial reduction of the fine.
The Ministry of Finance of Ukraine has prepared changes to the form of the report on controlled transactions. On the website of the Ministry of Finance, the project of the order "On Amendments to Certain Regulatory Acts of the Ministry of Finance of Ukraine" was published.
This is due to the need to improve control over compliance with the conditions of controlled operations of the arm's length principle.
The document, in particular, proposes to make changes to the report on controlled transactions (hereinafter – CT Report). The appendix to it provides, in particular, information about controlled transactions: the contract (agreement), according to which controlled transactions are carried out, Incoterms, the exchange rate on the date of displaying the controlled transaction in accounting and the number of items of the transaction, as well as the grounds for assigning operations to controlled, including relatedness of individuals.
In addition, when carrying out an independent adjustment of the price of the controlled transaction and the amount of tax liabilities, the taxpayer is obliged to specify the contract (agreement) and the terms of sale in the TP appendix to the Tax Declaration on the income tax of enterprises (hereinafter – the TP appendix) among other information specify the contract (agreement) and terms of sale (purchase) of goods (works, services), as well as the minimum (maximum) value of the price range/profitability and the amount of adjustment.
The current version of the CT Report and the TP appendix do not fully disclose the information necessary for the implementation of tax control in compliance with the conditions of controlled operations of the arm's length principle, which leads to an additional burden on taxpayers as a result of inquiries by the controlling authorities for the purpose of obtaining tax information.
The changes propose to determine that in the case of a non-resident submitting the Report of permanent representative office through which the non-resident carries out activities in Ukraine, on economic transactions (including intra-economic settlements), such a report is submitted at a non-main place of accounting, i.e. at the place of accounting of the permanent representative office.
In the event that the non-resident has several permanent offices in different regulatory bodies, this non-resident prepares the Report of non-main place of registration, for each permanent office separately and submits it according to the place of registration of such permanent offices.
The full list of innovations can be found on the website of the Ministry of Finance.
The National Bank of Ukraine by Resolution No. 125 of October 6, 2023 "On Amendments to Certain Regulatory Acts of the National Bank of Ukraine" continues to gradually restore the requirements for banks that were temporarily eased at the beginning of the full-scale invasion, including regarding credit risk assessment.
Thus, from October 31, 2023, separate requirements of the Regulation on determining the amount of credit risk in active banking operations by banks of Ukraine, approved by Resolution of the NBU Board No. 351 of June 30, 2016 (hereinafter – Regulation No. 351), will be restored.
In particular, requirements for the bank to recognize the debtor's default if the debtor has paid the debt in an amount less than the amount of income recognized by the bank, or there has been a decrease in the interest rate on the loan by more than 30% from the initial terms of the contract, which is not caused by a change in market conditions.
At the same time, based on the principles of credit risk assessment defined in Regulation No. 351, additional signs of default of legal entities debtors, whose assets are evaluated on an individual basis, are introduced.
Banks will begin to take into account established signs of debtor default when assessing credit risk, starting from October 31, 2023. Relevant signs should be reflected in the banks' problem asset management systems.
In addition, from 2024, the requirements for the renewal and submission by banks to the National Bank of the plans for the restoration of the activities of banks and banking groups will be reinstated. Updating of plans should be carried out taking into account the updated strategy, business plan and actual indicators of the financial condition of the bank/banking group, the general situation in the banking system and stress testing carried out using at least one general market stress scenario. Updated plans for the restoration of the bank's activities must be submitted to the National Bank by October 1, 2024.
The Ministry of Finance of Ukraine, by Order No. 506 of September 20, 2023, made changes to the form of tourist tax declaration.
The order simplifies tourist tax reporting in connection with the automation of the procedure for accepting and processing tax reporting, in particular, the elimination of the need for independent calculation of the penalty by the payer of the tourist tax, the exclusion from the tax declaration of the position regarding the conduct of a chamber audit of this tax declaration by an official of the controlling body.
Thus, the following are excluded from the tax declaration and its annex:
- lines regarding the determination of the penalty amount;
- note to such lines regarding the procedure for calculating the amount of the penalty;
- position "This part of the Tax Declaration is filled out by the officials of the controlling body" regarding the indication by the officials of the controlling bodies of the results of the chamber audit of the tax declaration.
In addition, a change is made to the notes in the tax declaration and the annex to it, which eliminates the ambiguity in determining the number of appendixes to the tax declaration.
The Verkhovna Rada of Ukraine has adopted a draft of the Law on Amendments to the Law of Ukraine "On Compensation for Damage and Destruction of Certain Categories of Immovable Property as a Result of Hostilities, Terrorist Acts, and Sabotages caused by the Armed Aggression of the Russian Federation against Ukraine, and the State Register of Property Damaged and Destroyed as a Result of Hostilities, Terrorist Acts, Sabotage caused by the Armed Aggression of the Russian Federation against Ukraine" (reg. No. 10063).
The bill is aimed at expanding the forms of providing compensation for damage to real estate as a result of hostilities, acts of terrorism, sabotage caused by the armed aggression of the Russian Federation against Ukraine, in particular, compensation for the cost of previously purchased construction products with own funds and already completed repair work on the damaged real estate.
