The Cabinet of Ministers of Ukraine approved the Resolution “On Approval of the Medium-Term Strategy for State Debt Management for 2018-2020”.
In 2017 for the first time since 2011, the ratio of debt to GDP decreased and began to approach the “safe” value of 60%, as defined by the Budget Code of Ukraine. This was made possible by the improvement of macroeconomic indicators and the concerted actions of the authorities regarding fiscal consolidation and monetary policy and reform.
The strategy identified the task for the Ministry of Finance of Ukraine to decrease debt to 60% in 2018, 52% in 2019 and 49% in 2020.
The document contains an indicative action plan for the next two years, which envisages, in particular, the possibility of issuance of government domestic loan bonds in euros and other currencies with which the Ukrainian hryvnia does not have a high level of correlation, issue of government domestic loan bonds in hryvnias for international investors, expansion of cooperation with IFOs and governments of foreign countries on preferential financing.
Other measures planned under the Strategy are aimed at strengthening relations with investors, attracting international investors to the domestic market of Ukraine, as well as work to improve the rating of Ukraine as a borrower. The result of the actions to strengthen institutional capacity will be the creation of the Debt Management Agency in line with the best international practices.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On VAT Taxation” of 17.08.2018, No. 3575/6/99-99-15-03-02-15/ІПК reminds that the return of tangible assets under a financial lease agreement is considered to be the supply of goods. Consequently, for a lessee who returns a financial lease agreement, such a transfer is equated for the purposes of VAT taxation before the lessor sells such an asset back to the lessor. Accordingly, the lessee - the VAT payer is obliged to calculate tax liabilities with VAT. But what, then, will be the basis for charging VAT obligations?
According to the rules of the TCU, the financial lease object, the return of which to be carried out, belongs the category of fixed assets, that is, it is a non-current asset.
Consequently, if the lessee - the VAT payer returns the financial lease object to the lessor - the VAT payer, the lessee - the VAT payer is required to calculate tax liabilities at a rate of 20% based on the tax base determined in accordance with paragraph 188.1 of TCU but not lower than book value (residual) value according to accounting records, which has developed at the beginning of the reporting (tax) period during which such transactions are carried out.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Procedure for Taxing the VAT transactions of the Health Care Establishment for the Supply of Health Services to the Insured Person Payable by the Insurance Company” of 13.08.2018, No. 3524/6/99-99-15-03-02-15/ІПК reported that the transaction of the health care services supply to be the subject to VAT.
At the same time, as noted by the representatives of the fiscal department, the health care institution, which supplies such services, on the date that occurred earlier (or receipt the insurance payment for the payment of the cost of services or the actual provision thereof):
- defines VAT liabilities based on the contract value of services;
- makes and register a tax invoice in the URTI for such a transaction to the insured person.
If the mentioned above services relate to the “privileged” categories (para.197.1.5 of TCU), then the medical institution that supplies such services does not determine the VAT liability, but is required to draw up and register a tax invoice for the transaction on insured person.
The tax authorities also reminded that the insurance company’s payment of insurance payments to be not the subject to VAT.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Procedure for Provision of Revised Financial Statements” of 16.08.2018, No. 3559/6/99-99-15-02-01-15/ІПК reported that companies could submit clarified financial statements for replacement of previously submitted based on the results of an audit to correct errors independently detected or for other reasons.
At the same time, the company must submit together with the clarified financial reporting the clarifying declaration for the relevant reporting period to the SFSU.
Confirmation of submission of financial reporting together with the declaration is “+” mark in the declaration in the “ФЗ12” box of the table “Availability of applications”.
The company places a mark in the boxes corresponding to the names of the forms of financial statements filed together with the declaration in the same table.
At the same time, it should be recalled: in case of correction of errors in the declaration, a company may not re-submit financial reporting, provided that the indicators of such reporting are not subject to correction.
The State Fiscal Service of Ukraine in the category of 108.01.02 “ZIR” considered the question whether the amount of guarantee payments returned to the auction participants to be included in the income of a legal entity - the payer of the unified tax. Therefore, according to sub-para.2 of para.292.1 of TCU, the income of payer of the unified tax for a legal entity is any income, including income of representative offices, branches of departments of such a legal entity, received during the tax (reporting) period in monetary form (cash and/or cashless); tangible or intangible form, as defined in para. 292.3 of the TCU.
According to para. 3.11 of the procedure for holding targeted auctions for the sale of property of a taxpayer, which is in the tax lien approved by the Order of the Ministry of Internal Affairs dated 22.05.2017, No. 518 (hereinafter - Procedure), an individual or a legal person who has expressed a desire to register as a participant in the auction, pays the registration fee, the size of which is set by the auction organizer and cannot exceed one non-taxable minimum of citizens’ income, and also makes a guarantee contribution in the amount of 10 percent of the initial price of the lot.
Target auction participants who were not recognized as the winners in accordance with para. 3.17 of the Procedure, the guarantee fee should be returned within five banking days from the day of signing the protocol of holding the target auction, by deducting the payments for bank transfers.
Therefore, the amount of guarantee fees paid for participation in the auction and to be returned to the auction participants after it, is not to be included in the income of the legal entity - the payer of the unified tax (stock exchange), since such contributions are not payment for goods (works, services).
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Imposing the VAT and the Income Tax on Medical Supplies” of 09.08.2018, No. 3483/6/99-99-15-03-02-15/ІПК considered the situation regarding VAT taxation and the income tax of transactions for the writing off of the medical supplies.
When the writing-off of inventories (including goods (products) of medical purpose) in connection with their recognition as unfit for use, such commodity-material values cannot be used within the economic activity of the company.
Since the VAT payer carries out a transaction for the writing off of inventories (including goods (articles) of medical purpose), then they begin to be used in transactions that are not economic activities of such a taxpayer.
As it was indicated in the application of the payer to the SFSU, the goods (products) of medical purpose at the time of their purchase by the payer were exempted from taxation.
Taking this into consideration, if the inventories (including goods (products) of medical purpose) are purchased without the inclusion of VAT amounts in the tax credit, then tax liabilities at their writing off are not to be charged.
In the event of the liquidation of fixed assets used in business activities and subject to depreciation in tax accounting, the financial result before taxation increases by the amount of the residual value of such assets determined in accordance with the rules of accounting and is reduced by the amount of the residual value of these assets, determined in accordance with the provisions of Art. 138 of TCU.
When the liquidation of fixed assets that are not used in economic activities, the financial result before taxation increases (in accordance with para. 138.1 of TCU) on the amount of the residual value of such assets, determined by accounting, and decreases (in accordance with para. 138.2 of TCU) at the amount of the initial value of purchasing or manufacturing and expenses for their repair, reconstruction, modernization or other improvement of such assets, as determined by the accounting.
At the same time, the adjustment of the financial result before the taxation is not carried out on the value of tangible assets that are accounted for in inventories and not to be depreciated in accordance to para.138.1 and 138.2 of TCU.
