The President of Ukraine signed the Law “On Amending Certain Legislative Acts of Ukraine regarding Corporate Treaties” of 23.03.17, No. 1984-VIII, which launches in the state a mechanism for concluding corporate agreements between founders of economic partnerships.
Such agreements expand the possibilities for the founders to implement their corporate rights. In particular, the contract may provide for:
- the obligation of its parties to vote in a manner determined by such agreement, at the general meeting of the participants (founders) of the economic partnership;
- agree on the acquisition or alienation of a share at a predetermined price and / or in the event of circumstances specified in the contract to refrain from alienation of shares before the circumstances specified in the contract;
- make other actions related to the management of a business company, its termination or separation from it of a new legal entity.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to certain Resolutions of the Cabinet of Ministers of Ukraine” of 14.02.18, No. 76 brought in accord some normative acts with the norms of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Enhancing the Protection of the Right of the Child to Proper Maintenance by Improving the Forced collection of arrears of alimony payments” (hereinafter − the Law on the payment of alimony).
Thus, the Regulation on the procedure for issuing driver’s licenses and the admission of citizens to the management of vehicles was amended. In particular, regarding the temporary limitation of the right to drive a car for owners, who have arrears of alimony.
The changes also affected the Rules of crossing the state border by citizens of Ukraine and the Procedure for registration, issuing, exchanging, sending, withdrawing, returning to the state, invalidating and removing a passport of a citizen of Ukraine for travelling abroad.
It is now determined: in case of presentation of a certificate of arrears of maintenance payments, the aggregate amount of which exceeds the amount of payments for six months, registration, exchange and issuance of a passport for travelling abroad, as well as departure from Ukraine of citizens who have not reached the age of 16, carried out without the consent of the second parent.
As for non-payment of alimony, other methods of influence are also provided. Those who do not pay maintenance for more than six months, it is planned:
- deprive the right of departure abroad to the liquidation of the debt;
- temporarily deprive of the right to use weapons and to hunt;
- bring them to make publicly useful works, and payment for it should be transferred for the debt of child support payment.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure for Submission and Registration of a Declaration of Conformity of the Material and Technical Base of the Subject of the Entrepreneur to the Requirements of Fire Safety Legislation” of 14.02.18,
No. 80 introduced adjustments to the Procedure for Submission and Registration of the Declaration of Material and Technical Compliance base of the business entity to the requirements of the legislation on fire safety, approved by the resolution of the Cabinet of Ministers of Ukraine dated 05.06.13, No. 440.
From now on, a business entity will have to submit a more detailed Declaration of Conformity of the Material and Technical Base to the requirements of the legislation on fire safety for the start-up of newly created enterprises or the commencement of the use of real estate objects.
In particular, it should be told in the Declaration in what condition the automatic fire protection installation (if any required) are, the name of the organization, the date and license number of the entity that carries out maintenance and monitoring of the systems, who and when the acceptance certificate is signed. If the systems of internal and external fire water supply are available, in what condition they are and who they are serviced, etc.
The completed Declaration can be sent by registered mail at the location of the property to the administrator of the administrative service centre or the State Service of Ukraine for Emergency Situations (hereinafter − SSUE), or through the Unified State Portal of Administrative Services, in particular through Integrated Services information system of SSUE.
The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the Procedure for Granting the Payment of Value Added Tax and Application of Enforcement of Obligations for Importation to Ukraine’s Customs Territory of Equipment for Own Production in the Territory of Ukraine” of 07.02.18, No. 85 approved the Procedure for Granting Deferral of Payment of the value-added tax and the enforcement of obligations when importing into Ukraine’s customs territory equipment for own production in the territory of Ukraine.
In order to receive an instalment payment for the value added tax (hereinafter − VAT), the importer must submit to the customs, in particular, the corresponding application; a business plan or other document that describes the process of economic calculations and expected results of the activity; conclusions of state bodies or export institutions confirming the availability of production facilities, etc.
The decision to grant instalments of VAT when importing equipment for own production will be accepted by the customs according to the recommendation of the special commission. The controllers have 10 working days from the date of receipt of the application for reflection. In particular the commission will inspect during this period:
- the conformity of the equipment specified in the application with the Ukrainian Commodity Code of Foreign Economic Activity from para.65 of the sub-sec. 2 of sec. XX of TCU, which gives the right to such an instalment;
- the confirmation of the cost of the equipment specified in the application;
- the confirmation that the equipment does not originate from the country recognized by the invading state or is not imported from the territory of such country;
- the absence from the importer of tax arrears, fees;
- the confirmation of the availability of production facilities or premises or conditions for the registration and storage of goods, finished products, etc.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the taxation of payments to a non-resident upon repayment of a bill” of 18.08.17, No. 1675/6/99-99-15-02-02-15/ІПК reported that the income of a non-resident – payee of bill in the form the amount of the discount during the repayment of the bill by the resident should be taxed as other non-resident income from the source of origin from Ukraine (para.“й” of para. 141.4.1 of the Tax Code of Ukraine, hereinafter − TCU).
That is, a resident of Ukraine during the repayment of a bill must withhold and pay a 15% tax in accordance with para. 141.4.2 of TCU, unless otherwise stipulated by the provisions of international treaties of Ukraine with the countries of residence in favour of which the payments are made.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Enrolment of prepaid advance payments of the income tax during the tax period in reducing the positive value of the tax liability of future reporting periods” of 31.01.18, No. 370/6/99-99-15-02-02-15/ІПК reminded: if the amount of the dividend advance paid in the reporting period exceeds the amount of the accrued tax liability of the enterprise issuing corporate rights for such tax (reporting) period, then the amount of this excess is transferred to the reduction of tax liabilities of the following tax (reporting) periods to its full repayment.
Thus, in the case of the results in 2017 or subsequent periods of a positive value of tax obligations on the income tax, the taxpayer has the right to reduce such amount to “non-paid” paid dividend advances during the last reporting period.
The amount of the advance payment accrued and paid in connection with the payment of dividends should be reflected in line 16.4 of ЗП application to the Tax Declaration on Company Income Tax, approved by the Order of the Ministry of Finance of Ukraine dated 20.10.15, No. 897.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the formation of tax obligations and tax credit in the case of supply of goods/services with payment at the expense of budgetary funds” of 12.02.18, No. 576/6/99-99-15-03-02-15/ПК reminded of VAT-specifics during the delivery of goods/services at the expense of budgetary funds. In this case, the supplier pays tax obligations on the date of receipt of payment to the account or on the date of receipt of other types of compensation, including reduction of its debt to the budget. But the general tax rules apply to display a tax credit. In this case, the supplier pays tax obligations on the date of receipt of payment to the account or on the date of receipt of other types of compensation, including reduction of its debt to the budget. But the general tax rules apply to display a tax credit. Thus, for purchases bought for budget funds or intended for deliveries, for which payment will come from the budget, the tax credit is increased by the rule of the first event.
According to the interpretation of the concept of “budgetary funds”, representatives of the fiscal department directed the taxpayer to the Budget Code of Ukraine.
The Ministry of Finance of Ukraine by its Order “On Amendments to Certain Guidelines on Accounting for Public Sector Entities” of 28.12.17, No. 1169 improved the guidelines on accounting for state employees.
Consequently, accountants of state institutions need to take into account several changes, namely:
- accrue depreciation on other non-current tangible assets created as a result of improvement of the operating lease object in a straightforward manner;
- fixed assets found as a result of inventory as a shortage, write off from the balance sheet and attribute it to the account of the perpetrators. And if the perpetrators are not established, they should be credited to the off-balance sheet account until the time of the establishment of the guilty persons or the closure of the proceedings;
- fixed assets received as a result of the write-off of property to be reflected in the accounts of fixed assets accounting.
The National Bank of Ukraine by its Resolution “On the implementation of currency transactions for credits, loans borrowed from non-residents under certain conditions” of 15.02.18, No.12 extended the possibility for banks to attract the so-called “synthetic” credits and loans in the national currency from non-residents (i.e. credits and loans which actual currency is hryvnia, and all payments between the creditor and the borrower are conducted exclusively in foreign currency).
By this time, Ukrainian borrowers could have borrowed such loans only if the non-resident lender was an international financial organization (hereinafter − IFO) (Ukraine is a member of which or on which it has undertaken to provide a legal regime).
From now on, the borrowing banks can attract “synthetic” credit and loans in hryvnia from any non-resident creditors, and not just from the IFO.
According to the NBU, the Ukrainian banks will use the funds received to lend Ukrainian borrowers in hryvnia. Such a mechanism will avoid currency risk, as it will be used by the non-resident lender of the Ukrainian bank.
