The President of Ukraine signed Law “On Amendments to the Law of Ukraine” On State Support for Cinematography in Ukraine “on granting a state subsidy for the reimbursement of a part of the qualified expenses incurred by a foreign cinematography subject in the production (creation) of a film in Ukraine” No. 130-IX, approved by the Verkhovna Rada on September 20, 2019.
The Law aims to promote investment and the development of film production infrastructure in Ukraine.
The document, in particular, provides for the state subsidies to return to the foreign filmmakers of 25% of the cost of filming in Ukraine.
In addition, foreign filmmakers can get a further 5% refund if they use the works of Ukrainian authors or a story about Ukraine to make films, including the topic of armed aggression against our country.
It is expected that the implementation of the law will promote the positive image of Ukraine abroad, popularization of Ukrainian authors and works in the world, cooperation and the production of joint film projects with leading Western filmmakers.
The Cabinet of Ministers of Ukraine has made a decision to reschedule the working day in January 2020 for favorable use of holidays and non-working days as well as rational use of working time in 2020.
Indeed, the Government recommends to shift the working day from Monday, January 6, to Saturday, January 11, 2020 for the workers with a five-day workweek with two days off (Saturday and Sunday).
Thus, the citizens will have four days off to celebrate Christmas next January.
The special working regime for banks and their subsidiaries these days will be determined by the National Bank, and will be further reported.
The Ministry of Finance of Ukraine by its Order “On Approval of Amendments to Certain Regulations of the Ministry of Finance of Ukraine on Accounting” No. 379 of September 16, 2019 made the following changes to:
- NAS 10 “Receivables” has clarified in paragraph 12 that long-term receivables are reflected in the balance sheet at its present value. The words “on which interest is charged” were excluded;
- NAS 8 “Intangible assets” has excluded the section “Features of intangible assets accounting by institutions”;
- NAS 9 “Inventories” has deleted the section “Features of inventories accounting by institutions”;
- NAS 11 “Liabilities” has deleted paragraph 8, under which interest accrued on liabilities that are repayable within 12 months of the balance sheet date should be considered a long-term liability if the original maturity date has been for more than 12 months and there is an agreement on the re-issuance of this obligation for the long-term, pending approval of the financial statements. Also, in the updated paragraph 19, the notes to the financial statements provide information about the list and amounts of liabilities included in the balance sheet items “Other long-term liabilities”, “Other current liabilities”;
- NAS 7 “Fixed assets” has deleted the section “Features of fixed assets accounting by institutions”. In addition, due to irrelevance the rule under which the initial (revalued) value of fixed asset can be increased by the amount of indexation carried out under tax law was removed;
- Instruction on the application of the Plan for the Accounting of Assets, Capital, Liabilities and Business Transactions of Enterprises and Organizations, approved by the Ministry of Finance Order No. 291 of November 30, 1999 has specified the section “Class 5. Long-term liabilities”, that the accounts for this Class are designed to account the data and summarize information, in particular, on the debt of the enterprise in relation to its borrowing obligations (except for bank loans). The words “on which interest is charged" were excluded.
The State Fiscal Service of Ukraine in its individual tax advice “On the necessity to determine VAT liabilities upon return of the leased object after the expiry of the lease agreement, provided that the tenant has improved the leased object, and on the procedure for taxation of VAT transactions for funds receipt in the form of a guarantee payment in case of change of the lessor” No. 703/6/99-00-07-03-02-15/ІПК of October 10, 2019 has explained whether it is necessary to determine value added tax liabilities (hereinafter – VAT) in case of return of the object lease after the lease agreement expires, provided that the tenant has improved the lease object. The tax authority spokeout on the procedure for taxation of VAT transactions for receipt of funds in the form of a guarantee payment in case of change of the lessor.
Therefore, if after the expiry of the lease agreement the improvement of the lease object made by the tenant is not transferred to the lessor and no additional transfer operations agreements are concluded for the transfer, and the improvement continues to be used by the tenant under the new lease agreement, then there is no grounds for charging the tenant with VAT liabilities. It is not a supply of goods or services within the meaning of paragraphs 14.1.185 and 14.1.191 of the TCU.
When the terms of the agreementstipulate that the guarantee payments are used as rent for the last month of the lease and are not refundable to the tenant, then this amount of the guarantee payments increases the VAT tax base. The tax liabilities of the lessor and the tax credit of the tenant in case of receipt/ transfer of such guarantee payment are determined in a general manner on the basis of a tax invoice prepared and registered in the Unified register of tax invoices (hereinafter – TI).
If, before the end of the lease, the leased property becomes the property of another person (lessor 2), then lessor 1 can calculate the adjustment to the TI, made during the receipt of funds to pay for the cost of the lease services, and, accordingly, reduce VAT liabilities only if tenant receives the refung for lease services not provided by lessor 1.
When lessor 1 transfers funds (in the amount of not provided lease services) to lessor 2, there is no reason for the lessor 1 to adjust the VAT liabilities. At the same time, the tenant loses the right to the tax credit for those lease services that were not provided by the lessor 1 (VAT liabilities should be calculated using the mechanism defined in i. 198.5 of the Tax Code of Ukraine; hereinafter – the TCU).
The State Fiscal Service of Ukraine in its individual tax advice “On the practical application of the rules of tax legislation to the activity of excise warehouses” No. 735/6/99-00-04-02-05-15/ІПК of October 11, 2019 has reported that the volume of fuel, which is reflected in the excise invoice during charging (first excise invoice) and discharging the railway tank (second excise invoice) must correspond to the actual data of such an indicator during each of these transactions.
At the same time, the taxpayer must make a separate excise invoice for fuel losses (natural losses during charging/discharging/transportation of goods, measurement errors, unloaded balance in the tank) (paragraph 2 of item 231.1 of the TCU). The corresponding excise invoices for the volume of lost fuel can be prepared either in the case the excise invoice is prepared during the unloading of fuel from the railway tank, or for the total volume of lost fuel during the reporting month not later than the last day of such month.
