The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure for State Registration (Re-registration), De-registration of Cars, Buses, and Self-propelled Vehicles Designed on the Chassis of Cars, Motorcycles of All Types, Stamps and Models, Trailers, Semitrailers, Motorbikes, Other Equivalent to of these vehicles and mopeds” of 06.12.17, No. 1092 made some adjustments to the order of registration of vehicles.
From now on, registration, re-registration and de-registration of the car can be done not only through the service centre of the Ministry of Internal Affairs, but also through the centre for providing administrative services.
Centres of administrative services providing are government agencies that are created under local councils on the one stop principle for the provision of administrative services to individuals and legal entities.
In particular, in order to register the car, specialists of the administration centre will be able to connect to the necessary electronic databases and thus accept, verify the relevant documents and issue the executed results.
Also the number of documents confirming the legality of the purchase of a vehicle increased. Consequently, the contracts of purchase and sale (mines, deliveries), donations of vehicles, as well as other contracts concluded and executed in the centres of rendering of the administrative services (in the presence of the administrators of such centres) will now also certify the acquisition of right of ownership of the car by a citizen.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure for the State Control of International Transfers of Dual-Use Goods” of 11.01.18, No. 1, made amendments to the Procedure for the State Control of International Transfers of Dual-Use Goods, approved by the Cabinet of Ministers on January 28, No. 86.
Innovations are introduced into the Unified List of Dual-Use Goods. It should be recalled that currently there are five such lists:
- goods that can be used in the creation of conventional weapons, military or special equipment;
- goods that can be used in the creation of missile weapons;
- goods that can be used to create a nuclear weapon;
- goods that can be used in the creation of chemical weapons;
- goods that can be used in the creation of bacteriological (biological) and toxic weapons.
Consequently, with the entry into force of such changes, the subjects of foreign economic activity will already need to be guided by the Unified List of goods. By the way, Government clearly affirmed in it that the control of the goods included in this List also applies to any goods not included in it (including installations), if they contain one controlled component or more that is the main element of such goods and may be seized or used for other purposes.
Changes start in 90 days after they are published.
The State Fiscal Service of Ukraine in its individual tax advice “On the Procedure for Determining the Tax (Reporting) Period by Producers of Agricultural Products for the Application of para.137.5” of 11.01.18, No. 106/6/99-99-15-02-02-15/ІПК informed that from 01.07.17, agricultural producers – having profits should determine the reporting periods for profit tax according to the general rules. Representatives of the fiscal department noted that in connection with the “liquidation” of Art. 209 of TCU, which defined the criteria for agricultural products, farmers lost the right to a special period of the income tax reporting.
Consequently, agricultural producers, who applied the annual tax (reporting) period from 01.07.16 to 30.06.17 and whose annual income exceeded UAH 20 million starting from 01.07.17 from any activity in 2016, are subject to reporting (tax) periods − three calendar quarters and a year.
If the annual income of such taxpayers did not exceed UAH 20 million, they should calculate and report income tax for the second half of 2017 as an aggregate sum for the year during the 60 calendar days that occur on the last calendar day of the reporting year.
The State Fiscal Service of Ukraine in its individual tax advice “On the Necessity to Withhold the Personal Income Tax and the War Tax” of 10.01.18, No. 100/6/99-99-13-01-01-15/ІПК clarified: in the case of accrual (payment) to an individual-entrepreneur – the unified tax payer of the third group of income from activities not specified in his/her accounting data and in the register of the unified tax payers, the business entity does not withhold the income tax and the war tax. But this income should be reflected in the form No. 1ДФ under the sign of income “157”.
The State Fiscal Service of Ukraine in its individual tax advice “On the Implementation of the Taxation and Payment of Personal Income Tax and the War Tax” of 10.01.18, No. 101/6/99-99-13-01-01-15/ІПК explained: if a legal entity has a subdivision (communication office) located in the territory different from that legal entity and which is not authorized to accrue the income tax, the legal entity transfers this tax withheld from the employees of the subdivision to the local budget at the location of such a subdivision. The basis for such a conclusion is para. 168.4.4 of TCU, according to which the income tax is paid to the budget accounts at the location of separate subdivisions.
As for the war tax, the norms of para. 168.4.4 of TCU do not apply to it, therefore, the war tax is paid in full to the budget at the location of legal entity.
The State Fiscal Service of Ukraine in its individual tax advice “On Taxation of Cloud Services Transactions Provided by a Non-Resident” of 09.01.18, No. 82/6/99-99-15-02-02-15/ІПК clarified the tax implications, which should be expected by the payers, who leased a server (disk space) from a non-resident.
Thus, when paying funds for the so-called cloud services to a foreign partner, the payer should keep from this amount the repatriation tax (15%). Of course, if the rules of the international treaty do not set other requirements.
In addition, since the place of delivery of such a service is the customs territory of Ukraine, they are subject to value added tax (hereinafter − VAT). Therefore, in accordance with para.180.2 of the TCU, the recipient of services (resident) must calculate and pay VAT to the budget for such a transaction.
The State Fiscal Service of Ukraine in its individual tax advice “On the Recognition of Controlled transactions” of 09.01.18, No. 81/6/99-99-15-02-02-15/ІПК noted: the amount of fines, penalties, penalties for violation of the conditions of return a loan to a non-resident is also taken into account when determining the value criterion for controlled transactions. Namely − when determining the volume of transactions with a separate non-resident.
In this regard, the customs officers reminded to the payers what price they would have to pay in the event of an error in the submitted Transaction Control Report. Namely − if the payer has not included in such a report at least one transaction that falls under the controlled criterion. For such an omission the taxpayer should pay a fine:
- in the case of failure to submit the Report on Controlled Transactions − 300 of living wage amounts for an able-bodied person, established by law on January 1 of the reporting year;
- 1% of the amount of controlled transactions not included in the report, but not more than 300 of living wage amounts for an able-bodied person, established by law on January 1 of the reporting year, for all undeclared controlled transactions;
- 3% of the amount of controlled transactions for which documentation has not been submitted, established by paras.39.4.6 and 39.4.8 of the Code, but not more than 200 living wages for an able-bodied person, established by law as of January 1 of the reporting year, for all controlled transactions performed in the corresponding reporting year.
It should be recalled that the payment of these fines does not relieve the payer of the obligation to submit a report on controlled transactions and/or transfer pricing documentation.
The Ministry of Finance of Ukraine by its Order “On approval of the procedure for filling in and issuing the customs certificate of transit (origin) of the goods EUR.1” of 20.11.17, No. 950, which approved the new Procedure for filling in and issuing the customs certificate of transit (origin) of the goods EUR.1. From now on, it will be issued in the unified procedure for the implementation of the provisions of the following Agreements:
- Free Trade Agreements between Ukraine and the EFTA States;
- Agreements on agriculture between Ukraine and the Kingdom of Norway;
- Agreements on agriculture between Ukraine and Iceland;
- Agreements on agriculture between Ukraine and the Swiss Confederation;
- Free Trade Agreement between the Government of Ukraine and the Government of Montenegro;
- Association Agreements between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand;
- other international treaties of Ukraine, concluded in the manner prescribed by law, which provide for an identical procedure for filling and issuing the customs certificate of transit (origin) of the goods EUR.1.
The EUR.1 certificate will be issued if it needs to be presented as proof that the goods meet the requirements of the rules of preferential origin established by the Agreements in the case of applying preferential import duty rates.
It will be issued by a customs officer at the time of export of the goods at the place of its customs clearance or after the export of the goods in the cases specified by the Agreements.
In order to receive the EUR.1 certificate, the exporter or authorized representative will have to submit the following documents to the subdivision of the customs office in charge of issuing the certificate:
- an application containing a declaration from the exporter, in the form prescribed by the Agreements, and/or its electronic copy;
- an electronic copy of the certificate in case of filling in its typewriter and (if any) the certificate form filled in accordance with the requirements of the agreements;
- a declaration of the supplier (manufacturer) of goods having a preferential status of origin (Annex 1 to this Procedure),
and / or the declaration of the supplier (manufacturer) of goods not having a preferential status of origin (Annex 2 to the Procedure),
and /or long-term declaration of the supplier (manufacturer) of goods having a preferential status of origin (Annex 3 to the Procedure),
and / or the long-term declaration of the supplier (manufacturer) of goods not having preferential status of origin (Annex 4 to the Procedure), confirming the preferential origin of goods from Ukraine in accordance with the rules of determination of preferential origin established by the Agreements and / or their electronic copies.
