The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure for Financial Reporting” of 11.07.2018, No. 547, amended the Procedure for Financial Reporting, approved by the Resolution of the Cabinet of Ministers of Ukraine of 28.02.2000, No. 419. The document is brought into compliance with the Law of Ukraine “On Amendments to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” regarding the improvement of certain provisions” of 05.10.2017, No. 2164-VIII (hereinafter – Law).
The resolution provides for:
- supplementing the list of enterprises that prepare financial reporting according to international financial reporting standards;
- submission of financial reporting, prepared under IFRS, based on taxonomy in the unified electronic format;
- submission of the report by separate categories of enterprises together with the financial statements on the management and the report on payments in favor of the state;
- disclosure of financial reporting in accordance with the requirements established by the Law;
- presentation of consolidated financial reporting.
This resolution enters into force from the day of its publication, except for par. 8 of sub-para. 1 of the amendments approved by this resolution, which comes into force on January 1, 2019.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure for VAT taxation” of 11.07.2018, No. 3062/6/99-99-15-03-02-15/ІПК reported that transactions on the supply of services for the international carriage of passengers, luggage and cargo by rail, road, sea, river and aviation to be taxed by a zero VAT rate. Transportation is considered to be international if it is carried out under the unified international transport document. Such a document can be:
- Air Waybill
- CMR
- Waybill of Agreement on International Goods Transport by Rail
- Bill of Lading
- CIM invoice
- Cargo Manifest
- other documents specified by the laws of Ukraine.
The zero VAT rate is applied to international cargo transportation operations along the whole route of cargo transportation in general without dividing it into segments within the customs territory of Ukraine and beyond. But it is not necessary to divide the route, only if the carriage is carried out under the unified international transport document.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the procedure of VAT taxation of funds received in the form of compensation for payment of the land tax” of 16.07.2018, No. 3126/6/99-99-15-03-02-15/ ІПК reported that in the rent part, the lessee had to compensate all elements of the costs associated with the provision of the property to the lease, including the land tax.
If the lessor is a budgetary institution, the reimbursement of expenses for the maintenance of the leased real estate, utilities and energy is not included in the VAT base. If the lessor is a different person - the VAT payer, the reimbursement of any costs is included in the VAT base.
The reimbursement of land tax and other costs by its nature is an integral part of the cost of a property lease. Therefore, such amounts are subject to VAT, they are included in the tax base of VAT for the relevant reporting period.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Taxation of the Aid Received by the Individual for Treatment” of 10.07.2018, No. 3055/6/99-99-13-02-03-15/ ІПК reminded that the total monthly (year) taxable income of the taxpayer does not include the funds or value of the property (services) provided as aid for the treatment and medical care of the taxpayer, subject to documentary confirmation of the costs associated with the provision of the said assistance (in case of funds provision) (para. 165.1.19 of TCU).
At the same time, representatives of the fiscal department noted that the funds provided by a legal entity (employer) to an individual (employee) as a treatment for treatment abroad are not subject to PIT and the war tax upon condition that documentary confirmation of the costs associated with the provision of the specified assistance.
These documents include, but are not limited to: the presence and characteristics of the illness, the pathological state of the taxpayer, service documents identifying the provider and the taxpayer to whom such services are provided, the volume and value of such services: contracts, payment and settlement documents, service delivery acts, other relevant documents depending on the treatment required, the illness and its condition.
The State Fiscal Service of Ukraine on the publicly available information resource “ZIR” (category 112.01) reports that the owner of real estate in an apartment building, along with other co-owners, should bear the costs of maintaining the building in proportion to own share of the property, which may also include a statutory fee for land on a land plot under such a building and adjacent territory.
At the same time, the direct payer of the payment for the land is a person in respect of which the registration of state rights to the land plot under the house and the adjacent territory (institution or organization that manages the apartment building of state or communal property; the association of co-owners of an apartment building that is the subject of registration in accordance with the decision of the co-owners).
In its turn, the tenant in both the residential and non-residential premises in the apartment building does not directly acquire ownership rights or use of land plots that would be subject to the state registration under such a lessee in accordance with the legislation.
Therefore, there are no grounds for accruing and payment for land (in the form of a land tax or rent for state or communal land) as a taxpayer.
The Ministry of Social Policy of Ukraine in its letter “On the average wages not taken into account for wages to ensure its minimum level dated 18.06.2018, No. 1056/0/101-18 reported that according to Art. 119 of the Code of Labor Law (hereinafter - Labor Code) for an employee who has been admitted to military service (term, mobilization, contract) until the end of a special period or before the day of actual dismissal, the place of employment, position and average earnings are preserved.
At the same time the average amount of earnings, which are preserved for the mentioned above employees, are not the salary of the employee, which the employer pays to him for the work performed - these are payments that are calculated in accordance with the provisions of the Procedure for calculating the average salary, approved by the CMU Decree of 08.02.95, No. 100 (hereinafter – the Procedure).
Amounts of average earnings are not included in the salary to ensure its minimum level.
At the same time, paragraph 10 of the Procedure stipulates that in case of raising tariff rates and salaries in accordance with legislative acts, as well as by decisions provided for in collective agreements, both in the accounting period and in the period during which the employee retains the average earnings, wages, including bonuses and other payments, which are taken into account when calculating the average wage, are adjusted to the increase rate during the period of time upward.
In cases when the increase of tariff rates and salaries occurred in the period during which the average earnings to be kept under the employee (including those employees who were called for a regular military service, military service on the call for mobilization, for a special period or taken to military service under a contract), according to this earning, accrual is made only in part relating to the days of maintaining the average wage on the day the tariff rates (salaries) increase.
The National Bank of Ukraine by its letter “On the declaration of currency values, revenues and property belonging to a resident of Ukraine and located outside its borders” 12.07.2018, No. 40-0006/38073 clarified the situation with currency declarations. According to the NBU, the sequence of filing by business entities of a declaration on currency values, as evidenced by a letter from the NBU dated April 17, 2003 No. 28-311/1929-2823 and State Tax Administration of Ukraine No. 3368/5/23-5316, is not applicable now. At present, the declaration is made separately in the SFS and in the NBU.
Business entities may send a declaration in a hard form to the NBU by mail or in person (the list of addresses is given in the letter).
It is not required from the territorial authorities to make stamps on the declarations submitted to the NBU.
In addition, the NBU directs attention that the Law of Ukraine dated June 21, 2018, No. 2473-VIII “On Currency and Currency Transactions”, which comes into force on February 7, 2019, does not stipulate for currency declarations.
