18 - 22 April 2016. New minimum wage and living wage are valid from May

The Verkhovna Rada of Ukraine approved the Law of Ukraine “On the State Budget of Ukraine for 2016” of 25.12.2015, № 928-VIII. The Art.7 and Art.8 of the Law provide for the changes in minimum wage and living wage from May 1, 2016. Thus, from 1 May to 30 November 2016 minimum wage per month will be UAH 1 450, but hourly wage rate will be equal to UAH 8.69 per hour.

Living wage rate per person per month, UAH

The State Fiscal Service of Ukraine in its letter “On registration of the excise tax by the payer, registration of excise invoices in electronic administration system of fuel realization when its use for own production needs” of 24.03.2016, № 6497/6/99-99-19-03-03-15 explained: if the business entity transferred fuel to contractors to perform works/services provision of harvesting (in other words, he/she used the fuel for own production needs through machinery fuelling to work on the fields), the related transactions to be the subject to the excise tax. Because, in fact, fuel is transferred under the contracts on services production of primary products of a customer and such transactions are the fuel realizations according to the interpretation of Sec. 2 of subpara.14.1.212 of the Tax Code of Ukraine (hereinafter – TCU). Consequently, the relevant entity is obliged to be registered as the excise tax payer and in case of fuel transfer is obliged to prepare the excise invoice in electronic form under each commodity code of subcategory according to UCC FEA (Ukrainian Commodity Classification of Foreign Economic Activities) of realized (spent) fuel and register it in the Unified Register of excise invoices.

The State Fiscal Service of Ukraine in its letter “On taxation of individual income tax of personal income, resulting from transfer of ownership of the mortgaged property to mortgage holder” of 08.04.2016, № 7884/6/99-99-17-03-03-15 explained: in case of acquiring of ownership of the immovable (movable) property by a bank through the including on its balance of the mortgaged property (subject of the mortgage) it should be considered that the individual - property guarantor alienated (sold) his/her own property. In addition, the income of an individual (property guarantor) is the value, which is determined at the moment of acquisition by the bank of ownership of the mortgaged property (encumbrance), to which the norms of Articles 172 and 173 are to be applied. Bank as a tax agent is obliged to perform all functions defined by sec. IV of TCU, including it should reflect specified income in the tax calculation of form № 1DP on the grounds of “104”.

The State Fiscal Service of Ukraine (hereinafter - SFSU) in its letter “On providing of tax advice” of 08.04.2016, № 7889/6/99-99-21-05-15 noted: only fuel should be reflected in the inventory report of fuel consumption specified in subpara.215.3.4 of TCU according to UCC FEA. In addition, the tax officers noted: according to para.9 of subsec.5 of sec. XX of TCU, the data of taking inventory of volumes of fuel consumption remaining could be verified by the supervisory authority in the prescribed manner within six calendar months from the date of its submission. In case of inconsistency of fuel amounts by results of verification, specified in the act of inventory, actual data and/or accounting data of the company the supervisory authority makes appropriate adjustments in the Unified Register of excise electronic invoices on the basis of the inspection report.

The Ministry of Finance of Ukraine by its Order of 18.03.2016, № 373 approved the amendments to the Regulation on the registration of payers of value added tax, approved by the Order of the Ministry of Finance dated 14.11.2014, № 1130 (hereinafter - Regulation № 1130), namely:

• in case of election or transition to the simplified taxation system, changes of unified tax rate or  rejection of the simplified taxation system, the entity should be registered by the payer of value added tax (hereinafter - VAT) not earlier than the date of change of the tax system, subject to the provisions of Art. 293 sec. XIV of TCU, which establish the unified tax rates for the third group payers that provide VAT payment without payment of this tax (paras.3.6. of Regulation № 1130);
• a new application for registration by the VAT payers in case specified by paragraphs 3.9 of Regulation № 1130, could be submitted to the supervisory authority with desired date of registration that was specified in the previous unaccepted application, if the entity, which is voluntarily registered as a VAT payer, liquidates the shortcomings, established by sec. 1 of paras.3.9 of Regulation № 1130, and this new application is submitted at least three working days before the beginning of the tax period from which such entity can be considered as a VAT payer and can have a right to a tax credit and a issuance of tax invoices;
• if the registration application submitted to the supervisory authority electronically, or refusal in registration or to proposition to submit a new application for registration should be posted in electronic form by the supervisory authority and should be sent to the email address from which this application received (paras. 3.10 of Regulation № 1130);
• if the application for cancellation of VAT registration submitted to the supervisory authority electronically, refusal to cancellation of registration or proposition to submit a new application for cancellation of registration should be posted by the supervisory authority in electronic form and sent to the email address from which this application received (paras. 5.4 of Regulation № 1130);
• decisions of the supervisory authority to cancel the decision on cancellation of VAT payer registration or his/her certified copy should be sent to the SFSU with a covering letter in 10 days after adoption (paras. 5.10 of Regulation № 1130).

The Ministry of Economic Development and Trade of Ukraine by its Order of 13.04.2016, № 680 approved an approximate tender documentation for procurement procedures - open biddings and competitive dialogue.

Approximate tender documents should be formed and submitted electronically.

It includes:

• mandatory information specified by Art. 22 of the Law of Ukraine “On public procurement” (hereinafter - the Law), which should be issued as a table consisting of three columns and submitted by a consumer as a separate file. The numbers should be indicated in column “1”, in column “2” - a list of the components of the tender documentation, in the column “3” - requirements for their filling according to the Law;
• information that is formed by the customer by means of filling of certain sidelines of electronic forms of electronic procurement system;
• annexes downloaded to electronic procurement system in separate files.

The contents of each section of the approximate tender documentation should be defined by the customer.

The Ministry of Justice of Ukraine in its letter “On submission of data on the final beneficiaries of owners” of 27.11.2015, № 1032/1375-0-2-15/8 noted that responsibility for the failure of information about the owners of substantial participation was not provided by the Law. In addition, it should be necessarily filled and submitted the first page of the relevant registration card (form approved by the Ministry of Justice of 06.01.2016, № 15/5) indicating the number of submitted pages and other filled pages.

Unfilled pages should not be submitted as required earlier.

In order to submit the information about the final beneficial owners it is required to fill in the application for state registration of changes to information on the legal entity, which is in the Unified State Register of Legal Entities and individuals - entrepreneurs and community groups. In the absence of the final beneficial owner (controller) of participant (founders) of the legal entity, if the participant (founder) is a legal entity, it should be an appropriate note in section 5 of the registration card.

The Supreme Court of Ukraine in case of 06.04.2016, № 3-174гс16 regulated: current accounts should be opened for a specific person, in case of provision of relevant documents and the possibility to change the account holder. It is not provided in the Regulations on the procedure of opening, use and closure of accounts in local and foreign currencies approved by the National Bank of Ukraine of 12.11.2003, № 492. Therefore, the bank was unable to follow instructions of the company under the current accounts, owned by the individual, resulting in there are no any financial requirements in the company to the bank by the submitted applications for the transfer of funds and cash withdrawal. In addition, the Supreme Court established the following: it is impossible the termination of obligations of admission of counter claims of the same kind (ch.1, Art. 601 of the Civil Code) in conditions when a temporary administration is introduced in the banking institution.

The Supreme Court of Ukraine in its resolution of 06.04.2016 formed a legal position in the case № 6-409цс16. The employee can apply for settlement of labor disputes directly the district, district in the city, municipal or regional court within three months from the day when he/she learned or should have known about the violation of own right (Art. 233 of the Labour Code (hereinafter - the Labour Code ). The settlement failure with the employee on the day of dismissal, or if he/she was not at work that day, the next day after his appeal with the requirement of settlement is the basis for the application of liability under Art.117 of the Labor Code. In this case, the course of three months period of appealing to the court starts from the day after mentioned payments regardless of the length of the settlement delay. According to Art.234 of the Labor Code in case of missed deadlines for valid reasons, established by Art.233 of this Code, the court may update these terms. The deadlines of appealing to the courts defined by the Art.228, 223 of the Labor Code should be are applied regardless of application of the parties. In each case the court is obliged to verify and discuss the reasons for missing these terms and give the reasons in its solution why it renew or considers impossible to restore violated period.