The President of Ukraine signed the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Increasing Pensions” of 03.10.17, No. 2148-VIII. The introduction of the mechanism for raising pensions made amendments to the Law of Ukraine “On the Collection and Accounting of the Unified Contribution to the Mandatory State Social Insurance” of 08.07.10, No. 2464-VI(hereinafter − Law on USC). In particular, the maximum base for the calculation of the unified contribution from January 1, 2018 will be 15 times of the minimum wage instead of the 25 subsistence minimum for able-bodied persons (para.4 of sec.1 of Art.1 of the Law on USC).
It should be reminded that now the maximum base for the calculation of the unified payment is amounted UAH 42 100. The draft Law on the State Budget of Ukraine for 2018 provides for an increase in the minimum wage to UAH 3 723, and, therefore, from January 1, 2018 the maximum basis for calculating USC may amount to UAH 55 845.
The size of the minimum insurance premium is not changed and remains at the level of the product of one minimum wage and the current rate of USC.
In addition, according to the made amendments, members of the farm will be included to the circle of payers of the unified contribution, provided that they do not belong to persons who are subjects to the insurance on other grounds.
Individuals-entrepreneurs and members of the farm will be exempted from paying the unified contribution, if they have a disability or have reached retirement age and receive a pension or social assistance.
According to the law, individuals-entrepreneurs, persons engaged in independent professional activities, and members of farms will pay the unified contribution accrued for the calendar quarter, to the 20th day of the month following the quarter for which the unified contribution is paid (sec.8 of Art.9 of the Law on USC). Now, entrepreneurs in the general system of taxation pay USC for the calendar year to February 10 of the next year, and individuals who carry out an independent professional activity − to May 1 of the following year.
The unified tax payers of the first group lose the right to pay the unified contribution of 0.5 minimum insurance premiums. Consequently, the minimum unified contribution for the unified tax payers of the first group will be set at the same level as for other taxpayers who chose a simplified taxation system − one minimum insurance premium (Art. 7 of the Law on USC).
The changes in the order of voluntary payment of the unified contribution are also provided (Art. 10 of the Law on USC). In particular, the smallest sum of the unified contribution to be paid for the previous period in case of a person’s identification of such a desire is increased by coefficient 2 (for a period up to 12 months) or 1.5 (for a period from 13 to 24 months).
Information from the State Register will be provided to employers, banks, enterprises, institutions and organizations for the purpose of its use for the servicing of citizens (with their consent or in cases established by the legislation on the protection of personal data).
It is planned to introduce in the USC reporting the indicator that will determine the shortcoming in amount of funds from the Pension Fund of Ukraine (para. 97 of sec.VII “Final and Transitional Provisions” of the Law on USC). The payers will report the amount of the unified contribution in the amounts provided by paras. 5 and 14 of Art. 8 of the Law on USC, without changing the amount of the payment of the unified contribution.
The payers of the unified contribution, who are not employers (that is, individuals who do not have employees), will be exempted from performance of the obligations defined by the Law on USC on accrual and payment of the unified contribution, reporting, etc. for the entire period of their unlawful imprisonment in the territory of ATO conducting. In order to do this, a family member’s application for an unlawful imprisonment of the individual should be submitted, which should be confirmed by the data of the state law enforcement agency, which ensures the state security of Ukraine.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Procedure for Requesting Taxpayers and Ordering, Organizing and Conducting Documentary Non-scheduled Inspections” of 03.10.17, No. 2111/6/99-99-14-03-03-15/ІПК reported that ignoring fiscal requests by the payer or incomplete replies to them could lead to unscheduled tax audit. This is possible due to the failure to provide explanations and documentary evidence on the request, in which the following are recorded:
- violations by the taxpayer of currency, tax and other legislation, the control of which is entrusted to representatives of the fiscal department (para. 78.1.1 of the Tax Code of Ukraine, hereinafter − TCU);
- unreliability of the data contained in the tax returns submitted by the payer (para. 78.1.4 of TCU).
The tax authorities consider it legitimate to investigate documents (their copies) and other tax information not mentioned in the request during such verification.
This conclusion is substantiated by the absence of a direct prohibition in the TCU on the impossibility of carrying out verification on other questions not directly mentioned in the request.
The explanations and documentary evidence provided by the payer upon request may also contain information indicating the unreliability of the data specified in other tax or other tax declarations.
It should be noted that such an approach does not apply to inspections conducted when a payer does not provide for counter-matching of the information specified in the request. That is, on the basis of para.78.1.19 of TCU. In this case, it is possible to verify only the questions fixed in the request.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On VAT Taxation for the Free Grant of Goods/Services” of 06.10.17, No. 2154/6/99-99-12-03-02-15/ІПК explained the procedure for imposing the value added tax (hereinafter − VAT) of transactions for the free transfer of goods/services. Representatives of the fiscal department allowed the taxpayer to calculate the tax only once in accordance with the rules of para. 188.1 of TCU, noting that the calculation of compensatory VAT on the requirements of para.198.5 of TCU is not carried out.
Interestingly, controllers usually require accruing VAT twice under free delivery. And only if the goods/services donated free of charge would be taxed in the part of the transaction to which they were included, it is permissible to do without para. 198.5 of TCU. This is evidenced by the actual answer in the category 101.06 “ZIR”.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the obligation to provide documentary scheduled (non-scheduled) inspections of documents and information in electronic form, including scanned copies of documents, which are created on paper” of 03.10.17, No. 2112/6/99-99-14-03-03-15/ІПК reported that taxpayers who make primary documents, accounting registers, financial statements and other documents only in electronic form during inspections should provide controllers, upon their request, with such documents only in electronic form.
It should be recalled that primary and consolidated accounting documents may be prepared in paper or electronic form (para. 2 of Art. 9 of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” of 16.07.99, No. 996-XIV). In addition, these documents must have the required details, including:
- a personal signature;
- an analogue of a personal signature;
- or a signature equivalent to a personal signature in accordance with the Law of Ukraine “On Electronic Digital Signature” of 22.05.03, No. 852-IV;
- or other data that allow identification of the person who participated in the conduct of the business transaction.
Primary documents prepared in electronic form, are used in accounting, subject to the requirements of the legislation on electronic documents and electronic document circulation.
The State Fiscal Service of Ukraine by its Order “On Approval of the Register of Large Taxpayers for 2018” of 26.09.17, No. 632 approved the Register of Large Taxpayers for 2018. 2 594 business entities were included in it, and that is 82 enterprises more than in 2017.
It should be recalled that after the inclusion of a taxpayer in the Register of large payers and receiving a notice from the State Fiscal Service of Ukraine (hereinafter − SFSU) on such inclusion, the taxpayer must be registered in the controlling body that carries out the support of large taxpayers from the beginning of the tax period (calendar year) for which this Register has been formed (para. 64.7 of TCU).
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the adjustment of the financial result before taxation to the amount of the write-off of deficiencies of values beyond the norms found during the inventory and the deficiencies from theft” of 29.08.17, No. 1756/6/99-99-15-02-02-15/ІПК noted that in case of writing off the deficiencies of material values found during the inventory, it is not required any adjustments to financial results.
This transaction will affect the subject to the income tax solely by the rules of accounting. Because sec.III of TCU does not contain the differences on such writing-off.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the adjustment of the financial result before taxation to the amount of the fines accrued by the decision of the relevant state bodies” of 03.10.17, No. 2115/6/99-99-155-02-02-15/ІПК explained how to apply a magnifying adjustment to the financial result specified in para. 140.5.11 of TCU on penalties accrued by state bodies. Adjustments are made only for expenses from recognized penalties accrued under civil law contracts, in accordance with the norms of civil law. Fines accrued for violating other legislation do not take part in the adjustment.
Thus, for example, if a fine is imposed for violating the terms of the contract for the supply of goods to the contractor public-sector employee, such an adjustment should be made. If, for example, a fine has been imposed for violation of tax laws − the financial result should not be adjusted in this situation.
The National Bank of Ukraine by its Resolution “On Amendments to the Resolution of the Board of the National Bank of Ukraine dated December 13, 2016 No. 410” of 10.10.17, No. 101 weakened the restrictions on the foreign exchange market. Non-bank financial institutions should primarily pay attention for the next liberalization. Thus, the regulator allowed the purchase and transfer of foreign currency, for placing outside Ukraine the guarantee deposit on accounts of international payment systems for banks and non-bank financial institutions (based on an individual license of the NBU). These are the funds used to meet obligations during the transfer of funds abroad.
The Ministry of Social Policy of Ukraine by its letter “On the Application of Part Three of Article 421 of the Law of Ukraine “On Employment of the Population” of 18.09.17, No. 2413/0/101-17 clarified the procedure for the application of Part 3 of Art. 421 of the Law of Ukraine “On Employment of the Population” of 05.07.2012, No. 5067-VI concerning obtaining a permit for the employment of foreigners and stateless persons.
It should be recalled that from 27.09.17, the employer may obtain this permit on condition of payment of wages not less than:
- 5 minimal wages (in 2017 – UAH 16 000) – for foreign hired employees in public associations, charitable organizations and educational institutions;
- 10 minimum wages (in 2017 – UAH 32 000) – for all other categories of hired workers.
The Ministry of Social Policy believes that these requirements apply to employers who receive a permit for the employment of a foreigner:
- for the first time;
- after termination of the previous employment contract (agreement) and the conclusion of a new one;
- in case of extension of the permit for the use of foreign worker’s work.
Consequently, even if the permit is prolonged, according to the Ministry of Social Policy, the employer must comply with the minimum wage requirement of the foreigner.
At the same time, according to Art. 56 of the Code of Labor Laws of Ukraine, in the agreement between the employee and the employer, both during hiring and afterwards, the worker may be assigned a part-time or part-time working week, the Ministry reminds. Therefore, nothing prevents an employer from accepting a foreigner for a salary of 32 000 hryvnias, but under conditions such as part-time work (it is possible to work even one day a week, and the amount of the calculated wages in this case will be determined according to the time worked).
The agency also notes that in the case of the extension of the permit, documents should be submitted in which the changes have taken place, and therefore, in case of increase of the salary, it is mandatory to submit a copy of the employment contract (agreement), in which the corresponding amount of salary is determined.
