The President of Ukraine has signed Law of Ukraine “On Amendments to the Code of Ukraine on Administrative Offenses and the Criminal Code of Ukraine on Strengthening Liability for Violation of Fire and Technogenic Safety Requirements” No. 1366-ІХ, adopted by the Verkhovna Rada on March 30, 2021 at the initiative of the Cabinet of Ministers.
Over the past five years, more than 352,000 fires have occurred in Ukraine, causing direct damage of more than UAH 6 billion. The fire killed more than 11,000 people, including 359 children, and injured more than 7,000 people.
In order to protect people's lives and property, national wealth and the environment, the parliament has passed and the President signed a law that increases the liability for violating the requirements of fire and technogenic safety.
According to the document, such violations will now be punished by a fine of 100 to 300 non-taxable minimum incomes (hereinafter – NTMI).
In addition, for violation of fire and technogenic safety requirements that have caused accidents and caused damage to human health or property, the criminal liability in the form of a fine of 1,000 to 4,020 NTMI or community service for up to two years or restriction or imprisonment for up to three years is provided.
If such actions cause the death of people or damage to property in a particularly large amount, the liability will include imprisonment for a term of three to eight years.
The law also strengthens administrative liability for knowingly false calls to special services – fire and rescue units, police, ambulance crews or other rescue teams (fines from 50 to 200 NTMI against fines of three to seven NTMI, as before); for non-compliance with the instructions of officials on fire and technogenic safety (fines from 100 to 300 NTMI).
In addition, the President has signed the interconnected Law of Ukraine “On Amendments to the Code of Administrative Offenses of Ukraine to establish liability for obstruction of fire and technogenic safety inspections” 1367-ІХ, which was adopted by the Parliament on March 30.
This document complements the previous one and establishes administrative liability for obstruction of fire and technogenic safety inspections.
Thus, the creation of obstacles in the activities of authorized officials in the field of fire and technogenic safety related to inspections will be punishable by a fine of 100 to 300 NTMI.
The State Tax Service of Ukraine in the category 107.01.06 “ZIR” gas answered the question “What are the actions of sole proprietor – ST payer (first – third groups) in case of loss of the book of income (book of income and expenses), which was kept until January 1, 2021?”
In case of loss of the book of income (book of income and expenses), which was kept until January 1, 2021 (hereinafter – the Book), which was kept until 01.01.2021, a sole proprietor – single tax payer is obliged within five days from the date of such event to notify in writing the controlling body at the place of registration and to restore the lost Book within 90 calendar days from the day following the day of receipt of the notification by the controlling body.
And in case of non-renewal of the Book it is considered that such payer hasn’t have it at the time of drawing up of the tax return of the single tax payer – sole proprietor.
In addition, the Book is stored for at least 1095 days from the date of submission of the tax return for which it is used, and in case of liquidation of the taxpayer documents for the period of its activity are stored for at least 1095 days preceding the date of its liquidation.
The State Tax Service of Ukraine, through the Office of Large Taxpayers, has explained the peculiarities of royalty taxation in favor of non-residents.
In accordance with item 140.5.6 of the Tax Code of Ukraine (hereinafter – the Tax Code), the financial result of the tax (reporting) period is increased by the amount of royalties (except for transactions recognized as controlled in accordance with Art. 39 of the Tax Code) in favor of non-residents (including non-residents registered in the states (in the territories) specified in item 39.2.1.2 of the Tax Code), which exceeds the amount of income from royalties, increased by 4% of net income from sales of products (goods, works, services) according to the financial statements for the year preceding the reporting year (except business entities operating in the field of television and radio broadcasting in accordance with the Law of Ukraine “On Television and Radio Broadcasting”), and for banks – in the amount that exceeds 4% of operating income (net of value added tax) for the year preceding the reporting.
Requirements of item 140.5.6 of the Tax Code are not applied by the taxpayer if:
- the transaction is not controlled and the amount of such costs is confirmed by the taxpayer at prices determined by the arm’s length principle in accordance with the procedure established by Art. 39 of the Tax Code, but without submitting a report.
Rules of item 140.5.6 of the Tax Code are applied based on the results of the tax (reporting) year.
According to item 140.5.7 of the Tax Code, the financial result of the tax (reporting) period is increased by the amount of costs for accrual of royalties in full, if the royalty is accrued in favor of:
- a non-resident who is not the beneficial (actual) recipient (owner) of the royalty, except in cases when the beneficiary (beneficial owner) has granted the right to receive royalties to other persons.
For the purposes of applying this sub-item in cases when residents – subjects of cinematography of Ukraine pay royalties to non-residents under sublicense agreements for the use or granting of the right to use audiovisual works (including films), as well as objects of copyright and/or related rights used in the production (creation) of audiovisual works (including films), such non-residents are considered to be the beneficial (actual) recipients (owners) of such royalties;
- a non-resident in respect of objects, intellectual property rights for which first arose in a resident of Ukraine.
In case of discrepancies between the controlling body and the taxpayer regarding the determination of the person who first acquired intellectual property rights to the intellectual property object, such controlling bodies are obliged to apply to the central executive body implementing state policy in the field of intellectual property, to obtain the appropriate conclusion.
Requirements of item 140.5.7 of the Tax Code does not apply to cases of accrual of royalties by the subject of cinematography for the use of intellectual property rights (films, literary works, musical works, works of fine arts, photographic works, phonograms, videograms), except when the resident of Ukraine a subject of cinematography who has property copyright and related rights as a result of the creation (production) of the specified works, if he/she has subsequently transferred or alienated property copyrights or related rights to a non-resident and accrues royalties for the use of this object;
- a non-resident who is not subject to royalty taxation in respect of royalties in the state of which he/she is a resident;
- a person who pays tax as part of other taxes, except for individuals who are taxed in the manner prescribed by Chapter IV of the Tax Code;
- a legal entity that, in accordance with the Tax Code, is exempt from paying this tax or pays this tax at a rate other than that established in item 136.1 of the Tax Code (18%).
