The President of Ukraine signed the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Facilitation of Business and Investment Attraction by Securities Issuers” of 16.11.17, No. 2210-VIII.
The law provides for a series of changes to the law governing securities transactions. In particular, the new law:
- improved order of securities issue, information disclosure system on the stock market, corporate governance in joint-stock companies;
- organized the activity of providing information services in the stock market;
- provided for an exclusive list of cases of non-distribution of requirements regarding the necessity of issuing a prospectus of securities by the issuer;
- improved and clearly written articles related to the issuance, approval, disclosure of the prospectus and the validity period of such a prospectus;
- cancelled the disclosure of the securities prospectus in paper form;
- improved the rules on regular information about the issuer, in particular:
- the requirements for public and private joint-stock companies are differentiated;
- the period of disclosure of information on holders of voting shares of private joint stock companies was reduced from 10% to 5%;
- additional disclosure requirements by separate categories of issuers were excluded;
- requirements for independent directors were improved;
- separate requirements for independent directors of banking institutions were specified;
- the mechanism of payment of dividends was improved;
- restrictions when determining the quorum of the general meeting and the rights to participate in voting at the general meeting were specified;
- the issue of the election of the company’s auditor was solved and the definition of the terms of the contract was transferred to the competence of the supervisory board from the general meeting;
- it was provides access to documents of a joint-stock company containing information about the financial and economic activities of a joint-stock company, each shareholder owning a large block of shares, namely - 10% or more;
- the features of corporate governance in joint-stock companies - banks are taken into account;
- it was provided for a transition period for joint stock companies to ensure the composition of the supervisory boards and their committees in accordance with the Law within one year from the date of entry into force and other provisions.
The State Fiscal Service of Ukraine in its individual tax advice “On Taxation of Interest on the Deposit of Non-Profit Organizations” of 29.12.17, No. 3208/6/99-99-15-02-02-15/ІПК reported that the interest on the deposit received by the public unions (non-profit organizations), are not subject to the income tax.
It should be understood that this refers to the interest earned within the statutory activities of the non-profit organization and used to finance its expenditures, the realization of the goals (aims, objectives) and activities defined by the constituent documents without the distribution of such income (profits) among the founders (participants) (para.133.4 of the Tax Code of Ukraine, hereinafter - TCU).
If the non-profit organization violates the conditions for using the received interest income, defined in para.133.4 of the TCU, it will lose its non-profit status and become a taxpayer of the income tax on the general terms.
The State Fiscal Service of Ukraine in its individual tax advice “On the consideration of the amount of VAT on the tax notice-decision, which denied the provision of state compensation” of 28.12.17, No. 3193/6/99-99-12-02-01-15/ІПК explained: if the results of the inspections reveal the lack of a right to receive budgetary compensation by the VAT payer, then the relevant structural unit of the controlling authority forms a tax notice-decision in the form of ВЗ.
It is important that such a sum can be taken into account by the VAT payer with the “+” sign in line 16.3 of the tax return for the reporting (tax) period, which is the date of the agreement of such tax notification decision. In addition, it is necessary to fill in a special line, which specifies the date, the number of the tax notice-decision and the corresponding indicator.
The tax amount, on which the taxpayer has the right to register tax invoices in the Unified Register of Tax Invoices under para. 2001.3 of TCU, is increased by the amount of the reduction of the application for compensation in accordance with the notification decision in the form of ВЗ, which denied the provision of a budgetary compensation.
The State Fiscal Service of Ukraine in its individual tax advice “On filling in the Tax calculation of the amount of income accrued (paid) in favour of individuals, and the amounts of tax deducted from them in f. 1ДФ” of 28.12.17, No. 3190/6/99-99-13-01-01-15/ІПК reported: incomes that are not subject to the war tax, are to be necessary included in the indicators of the accrued and paid income of the line “The war tax” of sec. II of f. 1ДФ.
The State Fiscal Service of Ukraine in its individual tax advice “On taxation of transactions for warranty maintenance of agricultural machinery” of 29.12.17, No. 3203/6/99-99-15-02-02-15/ІПК clarified the tax consequences of business transactions for free of charge carrying out of the warranty repair of agricultural machinery.
It is everything simple with the income tax: there is no need to make any adjustments. After all, para.III of the TCU does not include tax differences regarding the warranty maintenance of equipment. Such transactions will affect the object of taxation of the income tax solely by the rules of accounting.
If we talk about VAT, then it is a slightly different situation. If the cost of the materials (goods) used during the warranty repair is not included in the value of other taxable transactions, then the warranty replacement is considered as a separate transaction and taxed in the general order.
Consequently, the taxpayer must make and register two tax invoices: one for the actual delivery price, the second for the amount calculated in view of the limitations of para. 188.1.
The State Fiscal Service of Ukraine in its individual tax advice “On the calculation of USC, if a sick leave sheet to be submitted after dismissal” of 29.12.17, No. 3206/6/99-99-15-03-02-15/ІПК clarified: assistance according to temporary disability is not payment for time worked. Consequently, the unified contribution should not be accrued on the amount of temporary disability benefit accrued to a person after his/her dismissal.
It should be recalled that according to para. 2 of Art.7 of the Law of Ukraine “On the Collection and Registration of the Unified Contribution to the Mandatory State Social Insurance” of 08.07.10, No. 2464-VI, if the salary is calculated for the time worked after dismissal, in order to calculate the unified contribution, this amount is divided by the number of months for which it has been accrued. As for accruals for time not worked after dismissal, they are not subject to the unified contribution.
Consequently, if the a sick leave sheet s submitted to the enterprise after the employee’s dismissal, and temporary disability falls for the period of work before dismissal, there are no grounds for accruing the unified contribution to the amount of the sick leave, and the explanation of the representatives of the fiscal department confirms this.
The State Fiscal Service of Ukraine in its letter “On Administration in 2018 of the Environmental Tax” of 05.01.18, No. 466/7/99-99-12-03-04-17 explained environmental tax payers should expect in 2018.
The fiscal authority, in particular, stressed that the rates of environmental tax increased by 11.2%. Increased rates should be applied when calculating tax liabilities for the relevant taxation objects that arose from 01.01.18.
In addition, controllers told about the deadlines for filing tax returns and paying tax obligations on the environmental taxes for:
- IV quarter 2017 - 09.02.18, and the last day of the tax payment - 19.02.18;
- I quarter 2018 - 10.05.18 and 18.05.18 respectively;
- II quarter 2018 - 09.08.18 and 17.08.18 respectively;
- III quarter 2018 - 09.11.18 and 19.11.18 respectively;
- IV quarter 2018 - 11.02.19 and 19.02.19 respectively.
At the same time, the representatives of the fiscal department noted: the amount of tax charged for emissions, discharges of pollutants and the placement of waste should be transferred by a single payment order in the accounts opened in the State Treasury, which ensure the distribution of these funds in the ratio defined by the Budget Code of Ukraine:
- 45% - to the general fund of the state budget (except for the tax charged for the generation of radioactive waste (including accumulated) and / or temporary storage of radioactive wastes by producers over the established terms of the license);
- 55% - to the special fund of local budgets (except for the tax that is charged for the generation of radioactive waste), including:
- rural, settlement, city budgets, budgets of united territorial communities established in accordance with the law and a prospective plan for the formation of community territories - 25%;
- regional budgets and the budget of the Autonomous Republic of Crimea - 30%;
- budgets of Kyiv and Sevastopol cities - 55%.
At the same time, the tax that is charged for the formation of radioactive waste, on the basis of Art.10 and para.6 of Art.11 of the Law of Ukraine “On the State Budget of Ukraine for 2018” of 07.12.17, No. 2246-VIII, is counted by 50 percent to the general fund of the state budget and the special fund of the state budget. According to the decision of the taxpayer, the tax can be paid monthly in the amount of one third of the planned volume for the quarter with a recalculation based on the results of the basic tax (reporting) period.
If the environmental tax payer from the beginning of the accounting year does not plan emissions, discharges of pollutants, waste placement, and the generation of radioactive waste during the reporting year, he/she must notify the appropriate control authority at the location of the sources of pollution and make a statement of the arbitrary form for the absence of it in the reporting year of the environmental tax calculation object. Otherwise, the taxpayer is required to file an Environmental Tax Declaration in the general case.
The Ministry of Health of Ukraine by its Order “On Amendments to the List of Medicinal Products Forbidden for advertising, Released Without a Prescription” of 14.11.17, No. 1408 approved the List of medicinal products forbidden for advertising non-prescription (hereinafter - List).
Criteria used in the determination of medicinal products, for which advertising is prohibited, are approved by the order of the Ministry of Health of 06.06.12 р. № 422. The list includes, in particular, medicinal products whose application can cause addiction syndrome; medicines used exclusively for the treatment of women during pregnancy and children under 12 years of age; medicines containing narcotic drugs, psychotropic substances and precursors; medicines for the treatment of tuberculosis, tumor diseases, diabetes, etc.
According to Art.27 of the Law of Ukraine “On Medicines” of 04.04.96, No. 123/96-ВР persons guilty of violating the legislation on medicinal products, are subject to disciplinary, administrative, civil or criminal liability in accordance with the law.
The Ministry of Social Policy of Ukraine by its Order “On Approval of Methodological Guidelines for the Implementation of Guidance” of 11.10.17, No. 1611 which approved the Guidelines for the Introduction of Guidance (hereinafter – Guidelines).
Guidance involves training directly at the workplace by transferring the experience and knowledge of the workforce to a person in need of professional training and skills development. The guidelines determine the conditions for conducting guidance, the powers of employees and mentors, and ways to stimulate mentors. Guidance is recommended to be carried out with the consent of the employee and directly during his/her performance of his/her job duties. It is recommended to organize guidance on the basis of an order of the head of the company.
The department recommends to establish the following types of material and moral incentives for the duties of guidance: bonuses for the qualitative training of an employee; bonus for early completion of guidance; provision of one-time remuneration; provision of annual leave in a convenient time for mentor; career advancement solution; awarding the honorary title “Best company mentor”, etc.
The Labor Code of Ukraine does not include a term such as “guidance”, but the improvement of the system of professional training of employees and the conditions for conducting guidance is stipulated in para.1.36 of Section I of the General Agreement on the Regulation of Basic Principles and Standards for the Implementation of Socio-Economic Policy and Labor Relations in Ukraine.
