The Cabinet of Ministers of Ukraine by its Resolution “On amendments in addition to the Resolution of the Cabinet of Ministers of Ukraine dated October 11, 2016, № 710” of 11.01.17, № 1 amended the regulations on the efficient use of public funds.
This regulatory act is brought into conformity with the Law of Ukraine “On civil service” of 10.12.2015, № 889-VIII.
In particular, the footnote “**” is excluded from para.18 of the annex to the mentioned Resolution, that ensures the implementation of the minimization of costs for business trips abroad regardless of the source of financing of such costs by the public authorities and other public bodies enterprises, institutions and organizations, established by the public authorities, which use the state budget funds.
The State Fiscal Service of Ukraine in its letter “On the use of information sources for the purpose of transfer pricing” of 16.01.2017, № 517/Г/99-99-12-03-07-14 reported that under the provisions of Art. 39 of the Tax Code of Ukraine (hereinafter − TCU), controlling authorities did not determine the lists of sources of information to the requests of taxpayers, to be used by them to match the conditions of controlled transaction of “arm’s length” principle. Such circumstances can be clarified only by controlling authorities in the implementation of tax control measures for transfer pricing.
In accordance with paras.39.5.3.1 of TCU, the taxpayer and the controlling authority use information sources that contain information providing opportunity to compare commercial and financial terms of the transaction according to paragraphs. 39.2.2 of TCU, including:
- information on comparable controlled transaction of the taxpayer, and information on comparable transactions of its counterpart - the parties of controlled transaction with unrelated parties;
- any information sources that contain open information and provide information on comparable transaction and persons;
- other sources, the information from which to be received by the taxpayer in compliance with requirements of the law, and that provide information on comparable transactions and persons, on condition that the taxpayer provides such information to the controlling authority;
- information received by the controlling authority within international agreements concluded by Ukraine.
The TCU did not establish a separate procedure of the use of statistical data of the National Bank of Ukraine by the taxpayer, on interest rates on credit facilities when analyzing the compliance of controlled transactions of “arm’s length” principle.
However, paras.39.5.3 of TCU determined that controlling authority used the same sources of information as the taxpayer, if it was not proven that other sources of information provided the opportunity to receive a higher level of comparability of commercial transactions and financial conditions. In addition, the controlling authority should not use information that is not publicly
accessible (in particular, information access to which is available only to public authorities), for tax purposes, for comparison of conditions of controlled transactions with the conditions of uncontrolled transactions.
The State Fiscal Service of Ukraine in its letter “On peculiarities of procedure of recalculation of the share of application of goods/services, fixed assets in taxable transactions during 2016” of 12.01.17, № 599/7/99-99-15-03-02-17 explained to the VAT payers how to carry out the recalculation of the share of application of goods/services, fixed assets in taxable transactions for 2016. Thus, representatives of fiscal agency stated:
- the concept of the annual recalculation is that it is necessary to additionally accrue the tax liabilities (hereinafter – TL) on the amount of VAT, which should be included in the tax credit (hereinafter − TC) during the year and which corresponds to the share of amount of non-taxable transactions in the total transactions of delivery of goods/services. It should be carried out by making adjustments calculations to tax invoices prepared during the year;
- tax liabilities accrued during the year according to paragraphs 198.5 and 199.1 of TCU should be reflected in lines 4.1 and 4.2 of the declaration, depending on what tax rate is applied 20 or 7%. TL adjustments calculated according to para. 199.1 of TCU, should be reflected in line 7 of the declaration (IV quarter) 2016 due to the annual recalculation;
- calculation of the share of application of goods/services and fixed assets in taxable/non-taxable transactions should be carried out in line 3.1 of Table 1 of Annex D7 to declaration for last reporting period of 2016;
- in 2016 it should be carried out the recalculation of not TC, as it was before 01.07.15, but of the amounts accrued during 2016 under para. 199.1 of TCU, and determine the amount of tax liabilities, on which TL formed during this period should be increased or decreased.
The State Fiscal Service of Ukraine by its letter “On the procedure of filling in and submission of the Declaration of the excise tax if an entity has several points of sale of goods within one code COATSU (Classifier of objects of administrative and territorial system of Ukraine) of 13.01.17, № 506/6/99-99-15-03-03-15 informed how should report on the excise tax the excise goods retailers, who had several points of sale of goods in one or different administrative and territorial units (i.e., have one or different codes of COATSU), but these administrative units to be serviced by one controlling authority. Tax officers believe that these business entities should submit the declaration of excise tax, which form approved by the Ministry of Finance of Ukraine of 23.01.15, № 14 with the appropriate amount of Annex 6 (for every point of sale).
The Ministry of Finance of Ukraine by its order “On Amendments to certain legislative acts of accounting in the public sector” of 23.12.2016, № 1135 made amendments to certain NASPS (National Accounting Standards in Public Sector).
In particular, it is clarified in NASPS 124 “Incomes” that the incomes from exchange transactions include revenues from services (execution of works):
- payment for services provided by the budgetary institutions according to their main activity;
- revenues of budgetary institutions from additional (economic) activity.
Other incomes from exchange transactions, in particular, also include the revaluation surplus of assets within the amount of previous markdown from the restoration the usefulness of assets.
The markdown of assets is also included into the cost of exchange transactions in NASPS 135 “Expenses”.
Also, chart of accounts for bookkeeping in public sector, approved by the Ministry of Finance of 31.12.2013, № 1203, was added in account 04 “Contingent Assets” of class 0 “Off-balance sheet accounts” by the sub-account 043 “temporarily transferred assets”. It is kept on it the accounts by the managers of budgetary funds and State Purpose Funds of the property transferred to them from the executive authorities, which reorganized or liquidated, and placed in the temporarily occupied territory and/or in the territory of the antiterrorist operation.
The mention of business trip expenses was transferred from the accounts 80, 81 to account 84.
It is specified that the account of raw materials and supplies for capital construction is not kept on the sub-accounts 1517(1527) “Raw materials and supplies” and 518(1528) “Other production supplies”.
On account 18 “Other non-financial assets” it is provided information on low value items for special purposes that have a specific purpose and a limited short-term use in some areas.
The State Statistics Service of Ukraine on its official website reported about the changes in the submission of forms of state statistical observations to the state statistics agencies in 2017.
Thus, it was changed term/frequency of submission of certain forms of state statistical observations:
- 1- SD (science/defence) (quarterly) “Report on the scientific and technical works for military purposes” (order of 17.10.2016, № 196) – it was changed the submission frequency from “quarterly” to “annual”;
- 1-innovation (once every two years) “Survey of industrial enterprises innovation” (order of 13.09.2016, № 181) – it was changed the submission frequency from “annual” to “once every two years”;
- 3-trade (quarterly) “Report on the sale and stock of goods in the trading network” (order of 31.08.2016, № 163) - starting from the first quarter of 2017 – it was changed the submission frequency from “quarterly, annual” to “quarterly”.
It was cancelled forms of state statistical observations:
- 6-TP (es) (annual) “Report on the work of power plant” (order of 31.08.2016, № 162);
- 1-science (semi-annual) “Report on the scientific and technical works” (order of 05.09.2016, № 166);
- 12-trade (annual) “On the availability and use of the trade network in the markets and sale of agricultural products there” (order of 31.08.2016, № 161);
- 9-DS (annual) “Report on quantitative and qualitative composition of civil servants and local government officials” (order of 30.12.2016, № 265);
- 11 mtp (annual) “Report on results of use of fuel, heat and electricity” (order of 24.10.2016, № 202);
- 11-er (annual) “Report on consumption of fuel, heat and electricity” (order of 24.10.2016, № 202);
- 11 mtp (fuel) (annual) “Actual fuel consumption for certain products and activities” (order of 24.10.2016, № 202);
- 11 mtp (ver) (annual) “Formation and use of secondary energy resources” (order of 24.10.2016, № 202).
Also it is introduced the form of statistical observation:
- 11 mtp (annual) “Report on the supply and use of energy” (order of 31.08.2016, № 162), in which it is integrated separate figures of forms of statistics of Energy and Industry invalidated according to the orders of the State Statistics of 31.08.2016, № 162 and of 24.10.2016, № 202.
In 2017, the state statistical bodies in accordance with established periodicity:
1) conduct the state statistical observations in the following forms:
- 7-PV (once every four years) “Report on wages according to the professions of individual employees” (order of 25.08.2016, № 152);
- INN (once every two years) “Survey of innovation of the company for the period 2014–2016” (order of 25.11.2016, № 225);
2) do not conduct the state statistical observations in the following forms:
- 1-PV (working conditions) (once every two years) “Report on the working conditions, benefits and compensation for work in hazardous working conditions” (from 12.06.2015, № 149);
- 1-innovation (once every two years) “Survey of industrial enterprises of innovation activity” (from 13.09.2016, № 181).
The authority of pensions and social security of system of Federation of Trade Unions of Ukraine on its official website announced that from January 1, 2017 it was established a new amount of monthly insurance payments to victims of accidents at work and occupational diseases, which amount was less than the minimum wage in terms of 100% disability, at the level of the minimum wage established by the law on December 1, 2016, taking into account the degree of disability.
Thus, from January 1, 2017 to those victims who have 100% disability, the amount of monthly insurance payment can not be less than the minimum wage as of December 1, 2016 (UAH 1 600). The victims, whose degree of disability is less than 100%, the minimum insurance payment should be determined with taking into account the minimum wage (UAH 1 600) proportionately with the degree of disability.
Currently, working bodies of the Social Insurance Fund of industrial accidents perform relevant calculations for victims in the workplace, which received miserable amount of such payments, receive them at a higher rate.
In addition, in 2017 it is renewed previously valid (by 2014) recalculation of amounts of monthly insurance payments to victims in the workplace, which should be done every year from March 1, according to the rate of growth of average wages in the country in the previous calendar year. After determining of the growth rate of average nominal wage in Ukraine by the State Statistics of Ukraine in 2016, it will be made the decision on the recalculation of monthly insurance payments as of March 1, 2017.
