The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Part X “Transitional Provisions” of the Land Code of Ukraine on the extension of the prohibition of alienation of agricultural lands of 10.11.2015, № 767-VIII. The Parliament by this normative legal act extended the moratorium on purchase and sale and other alienation of agricultural land to January 1, 2018. But this postponement could be called minimal, because the moratorium should last before the regulation of turnover of agricultural land procedures in terms of legislation. There were made appropriate amendments in the paragraphs 14 and 15 of sec. X of the Land Code of Ukraine.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated February 2, 2011, № 98” of 05.10.16, № 681 determined that period of business trip of state employees could not exceed 60 calendar days, except in cases determined by the law.
The maximum duration of business trip within Ukraine for other personnel, assigned to a business trip by companies, institutions and organizations that are fully or partly funded at the expense of budget funds, as before, cannot exceed 30 calendar days (except in certain cases).
The maximum duration of business trip of state employees, who are directed to the prevention or elimination of consequences of natural disasters, epidemics, epizootics, industrial accidents as well as elimination of other circumstances that caused or may cause life-threatening situation or the conditions of people’ life, is one year.
Peculiarities of state employees assigned to a business trip for performing of their official duties outside the permanent place of service, in particular, to work of the secretariats of international organizations, representatives of international organizations in other countries or foreign authorities will be determined in accordance with the procedure approved by the Government.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to Certain resolutions of the Cabinet of Ministers of Ukraine and the Recognition as Invalid the resolution of the Cabinet of Ministers of Ukraine dated August 25, 2004, № 1094” of 22.09.16, № 668 removed the differences in land management.
In particular, it is determined that the land management project that provides ecological and economic substantiation of crop rotation and lands’ ordering consists of the materials listed in Art.51 of the Law of Ukraine “On Land Management” of 22.05.03, № 858-IV. Now the land management project in this sphere does not require coordination and approval by the customer. In addition, it was abolished the requirement to conduct the state examination of land use documentation by StateGeoCadastre (the State Service of Ukraine for Geodesy, Cartography and Cadastre) (its territorial agencies).
Also, it was abolished the procedure for the development of land management projects on organization and establishment of the boundaries of territories of nature reserve fund, other environmental protection, health, recreational, historical and cultural destination. That is, documentation for land management is unified.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Regulations on the manufacture, storage, sale of excise duty stamps and labelling of alcoholic beverages and tobacco products” of 05.10.16, № 683 simplified life of companies − manufacturers and importers of alcoholic beverages and tobacco products. In particular, they were allowed to submit an application-calculation on the need for stamps in electronic form, as well as a copy of a payment document on the transfer of payment for stamps (but not its original).
Also, the sale of stamps to domestic manufacturers of alcoholic beverages and tobacco products will be carried out on the basis of documents submitted in electronic form.
The State Fiscal Service of Ukraine in its letter “On the recognition of business transactions between the commission agent and the commission principal as residents, resident and non-resident as controlled” of 13.09.16, № 19914/6/99-99-15-02-02-15 explained in what cases the transaction on the sale of goods of the principal-resident by the commission agent-resident should be considered controlled for transfer pricing purposes, if the buyer - a non-resident.
In particular, business transactions between the commission principal-resident and the commission agent-resident should not be considered as controlled regardless of whether they are related parties or not.
Considering that the sale of goods on the conditions of commission does not provide for transfer of ownership on such goods from the commission agent-resident to the buyer − non-resident (because the first is not the owner of the goods), these transactions also are not classified as controlled.
In the case of achieving the criteria established by sub-para. 39.2.1.7 of the Tax Code of Ukraine (hereinafter − TCU), the transactions of goods sale of the commission principal-resident to the buyer - non-resident are to be considered as controlled, if:
- a buyer - non-resident is a connected person to the commission principal-resident;
- country of residence of the buyer − non-resident is included in the list of countries (territories) approved by the Cabinet of Ministers of Ukraine at the time of the transaction.
In this case, the commission principal-resident is obliged to submit in due time a report on the controlled transactions carried out during the reporting tax period.
The State Fiscal Service of Ukraine in its letter “On the possibility of inclusion in the tax credit of the VAT amount specified in the tax invoice where there was an error in the preparation date” of 13.09.16, № 19854/6/99-99-15-03-02-15 explained that the tax invoice prepared with the incorrect date could not confirm the tax credit of a buyer. Because this error makes it impossible to identify the period of the transaction for the supply of goods/services, so para.201.11 of TCU does not work in this case.
As it is known, the tax invoice, which contains errors on the required requisites (except the product code according to the UCC FEA), is the basis for the attributing the amounts of value added tax (hereinafter − VAT) to the tax credit by the buyer, if the errors do not prevent to identify implemented transaction, its content (product / service to be supplied), the period, the parties and the amount of tax liabilities.
The State Fiscal Service of Ukraine in its letter “On the Procedure for taxation of VAT transactions for the provision of the right to use a computer program under a license agreement” of 12.09.16, № 19600/6/99-99-15-03-02-15 reports the following: if under the license agreement the terms of use of the computer program are limited to the functional purpose and playback program is limited to the number of copies required for use (the use by “end-consumer”), the receipt of remuneration by the supplier should not be considered as royalties. This payment is a payment of cost of delivered computer program (its copies), the transaction for the supply of which is exempt from VAT in accordance with para.26¹ of sub-sec. 2 of sec. XX of TCU.
Considering the transaction for providing the right to use a computer program, in this case controllers recommend to make adjustment calculation to previously executed tax invoice.
It is worth mentioning that the adjustment calculations on reduction of the amount of compensation should be registered in the Unified Register of tax invoices by the buyer.
The State Fiscal Service of Ukraine in its letter “On the procedure of collection of excise tax from malty beer” of 28.09.16, № 10209/О/99-99-15-03-03-14 noted that the premises of retail trade (restaurant-brewery) when the beer selling of own production should impose the exercise tax on beer simultaneously at two rates:
- specific (absolute) rate of the excise tax at the rate of 2.48 UAH per litre;
- ad valorem (relative) rate of 5% of the cost (including VAT and excluding the excise tax from the sale of retailers).
This explanation is based on the fact that TCU does not provide for exemption from taxation of transactions with excisable goods in the case when economic entity is a manufacturer and retailer.
The State Fiscal Service of Ukraine in its letter “On the depreciation of fixed assets created by allocation, applying the terms of use to them” of 04.07.16, № 14492/6/99-99-15-02-02-15 explained the issue. Thus, the subject to the tax depreciation of fixed assets (hereinafter − FA) of a company, which to be allocated, in accordance with the provisions of paragraphs 138.3.1 of TCU is the net fixed assets, referred to it by the separation balance sheet, the value of which is determined by the rules of tax accounting and reflected in the tax declaration of the company, from which was an allocation.
The State Fiscal Service of Ukraine in its letter “On the taxation of incomes when the payment of royalties for the software, if such payments are not considered as royalties” of 28.09.16, № 21036/6/99-99-15-02-02-15 reports: if the company makes payments to non-residents, which according to the rules of accounting are recognized as royalty, and do not fall under a concept for taxation purposes of the income tax, so para. 141.4 of TCU should not be applied to such payments. Consequently, it is not necessary to deduct the withholding tax.
The list of payments, which are not considered as royalties for tax purposes, is defined in paragraph 14.1.225 of TCU. In addition, it is noted if the international agreement, consent to be bound by a treaty of the 4.1.225 TCU. In addition, it is noted if the international agreement, to be bound by the Verkhovna Rada of Ukraine, establishes other rules than those provided by the TCU, the rules of the international treaty should be applied. So, if such a treaty for the avoidance of double taxation with the appropriate country contains its own interpretation of the concept, to determine the royalty should be applied such an international agreement.
The Ministry of Social Policy of Ukraine by its letter “On the dismissal of female employee, who has foreign citizenship” of 02.03.11, № 2164/0/14-11/026 reports that sec.3 of Art.184 of the Labour Code does not apply to female workers, who are foreign female citizens, the Article prohibits the employers to dismiss on their own initiative, in particular, pregnant women, women with children under three years old, single mothers who have children under 14 years of age or disabled children. The exception to this rule is the dismissal in connection with the liquidation, when it is possible the dismissal with mandatory employment.
In addition, the agency notes that foreign employees are entitled to vacation on a par with the citizens of Ukraine, including maternity leave.
