January 22 – 26, 2024. Amendments to Procedure for completing Joint Report approved

The Ministry of Finance of Ukraine issued Order No. 720 of December 26, 2023 amending the Procedure for Completion and Submission by Tax Agents of the Tax Calculation of the Amounts of Income Accrued (Paid) in Favor of Individual Taxpayers and the Amounts of Tax Withheld from them, as well as the Accrued Single Contribution, approved by Order of the Ministry of Finance No. 4 of January 13, 2015.

The amendments to the Procedure are due to the entry into force of the following laws:

• No. 2823-ІХ “On Amendments to the Tax Code of Ukraine and Certain Laws of Ukraine on Support of Borrowers whose Property was Destroyed or Damaged as a Result of the Armed Aggression of the Russian Federation against Ukraine”
• No. 3157-ІХ “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Peculiarities of Taxation of Amounts by which an Individual's Debt is Reduced (Forgiven) as a Result of Restructuring Consumer Loan Obligation during Martial Law",
• No. 3219-ІХ “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Peculiarities of Taxation during the Period of Martial Law”.

The document amended:

1) the Procedure for Completion and Submission by Tax Agents of the Tax Calculation of Amounts of Income Accrued (Paid) in Favor of Individual Taxpayers and Amounts of Tax Withheld from them, as well as the Accrued Single Contribution.

The changes are editorial. In particular, it has been clarified that a legal entity, when submitting a separate subdivision calculation, must indicate the data on the separate subdivision in line 033 (and not 032 as it is now) of the header part of the calculation. Section 4 of the Procedure on filling in the appendixes to the Calculation has also been amended.

2) Appendix 1 to the Procedure “Table of Correspondence of Codes of Categories of Insured Persons and Codes of the Base of Accrual and Amounts of the Single Contribution for Obligatory State Social Insurance”. It is supplemented with a new line 81 “Persons holding a special title of the Economic Security Bureau of Ukraine”.

3) Section 1 “Handbook of Indicators of Income of Individuals" of Annex 2 to the Procedure. Namely, new indicators of personal income 210 (partial unemployment benefit), 211 (compensation for damaged real estate during the war) are introduced and editorial changes are made to indicators of personal income 111, 112, 156, 189, 193 in accordance with the current tax legislation.

The National Bank of Ukraine by its Resolution No. 9 of January 18, 2024 "On Approval of the Rules for Reporting on Active Transactions", which entered into force on January 23, 2024, approved the Rules for Reporting on Active Transactions (hereinafter – the Rules).

The Rules have been developed to comply with the requirements of the Law of Ukraine "On Financial Services and Financial Companies (hereinafter – the Law on Financial Services)" and to enable the NBU to receive reports from financial market participants conducting active transactions in order to supervise their activities and assess the effectiveness of credit risk management.

The Rules define general requirements for preparing reports on active transactions, the procedure for signing and submitting them to the NBU.

The following respondents submit reports on active transactions to the NBU

• Ukrainian banks;
• financial companies that have the right to provide at least one of the financial services specified in paragraphs 1-4 of part one of Article 29 of the Law on Financial Services, namely: lending of funds and banking metals, provision of guarantees, factoring, and financial leasing
• credit unions.

The reports on active transactions contains information on transactions by the types of financial services specified in items 2, 4-6 of part one of Article 4 of the Law on Financial Services, transactions with securities, receivables, derivatives and transactions on placement of funds on correspondent accounts with other banks, which are recorded on the respondent's active balance sheet or off-balance sheet accounts, as well as information on the debtor and persons related to the debtor and the active transaction.

The Law establishes requirements for reporting on active transactions in respect of:

• data sets;
• details of reporting on active transactions;
• handboooks and their values used for reporting on active transactions.

Active transaction reports must be submitted to the NBU in JSON format and shall comply with the formalized description defined in the JSON Schema.

The respondent submits reports on active transactions to the NBU if the total amount of liabilities (total debt) of the debtor is equal to or exceeds UAH 50 thousand (or the equivalent of this amount in foreign currency at the official exchange rate of the NBU set on the first business day of the month following the reporting month), and further until the obligations of this debtor are completely terminated.

Banks of Ukraine, financial companies, and credit unions submit reports on active transactions to the NBU within the following timeframes

• starting from the reporting date of July 1, 2024, information on transactions by type of financial services specified in items 2, 4-6 of part one of Article 4 of the Law on Financial Services, as well as information on debtors and persons related to debtors and such transactions;
• starting from the reporting date of October 01, 2024, the information in full.

The Ministry of Finance of Ukraine issued Order No. 6 of January 4, 2024 "On Approval of Amendments to the Form of Corporate Income Tax Return".

The purpose of the document is to implement the provisions of Law of Ukraine No. 3325-IX of August 10, 2023 "On Amendments to the Tax Code of Ukraine on Support of Activities for the Protection of Human Life at Sea in accordance with International Treaties of Ukraine".

This Law has clarified the peculiarities of taxation of activities in the field of organizing and conducting gambling and defined the objects of taxation established for

• entities that organize and conduct gambling in slot machine halls;
• entities engaged in the organization and conduct of gambling, except for the organization and conduct of gambling in slot machine halls.

The Order has introduced the following changes to the income tax return form:

1) in line 10, the words "an entity conducting gambling with the use of slot machines", "an entity conducting betting activities and gambling (including casinos), except for gambling with the use of slot machines" to be replaced with the words "an entity, that organizes and conducts gambling in slot machine halls", "an entity that carries out activities in the field of organizing and conducting gambling, except for the organization and conduct of gambling in slot machine halls" respectively;

2) the following lines in the return indicators are set out in a new version:

• 11. Amount of income received from organizing and conducting gambling in slot machine halls
• 12. Tax on income received from organizing and conducting gambling in slot machine halls for the reporting (tax) period (line 11 x ____⁸/100)
• 13. Amount of income received from activities in the field of organizing and conducting gambling, except for income received from organizing and conducting gambling in slot machine halls
• 15. Tax on income received from activities in the field of organizing and conducting gambling, except for income received from organizing and conducting gambling in slot machine halls, for the reporting (tax) period (positive value (line 13 - line 14) x ____⁹/100).

3) in the Correction of Errors Appendix to this return (lines 29–32, 34–36, 38–40, 42), the following lines are set out in a new version:

• 11. Amount of income received from organizing and conducting gambling in slot machine halls
• 12. Tax on income received from the organization and conduct of gambling in slot machine halls for the reporting (tax) period (line 11 x ____⁵/100)
• 13. Amount of income received from activities in the field of organizing and conducting gambling, except for income received from organizing and conducting gambling in slot machine halls
• 15. Tax on income received from activities in the field of organizing and conducting gambling, except for income received from organizing and conducting gambling in slot machine halls, for the reporting (tax) period (positive value (line 13 - line 14) x ____⁶/100).

The Ministry of Economy of Ukraine by Order No. 1410 of January 16, 2024 "On Approval of Amendment No. 13 to the National Classifier ДК 003:2010" amended the national classifier ДК 003:2010 "Classification of Occupations" approved by Order of the State Committee of Ukraine for Technical Regulation and Consumer Policy No. 327 of July 28, 2010.

Most of the changes concern the names of professions in the field of information technology. There are also changes in the names of military professions.

Order No. 1410 has:

• added 2 new occupational groups to Section 5 "Classification of Occupations";
• canceled 9 and changed 11 professional titles;
• added 42 professional titles.

The amendments to the Classification came into force on January 16, 2024.