The State Tax Service of Ukraine drew the attention of taxpayers to the fact that from January 1, 2020, accounts for the accrual of taxes, fees, payments to the state and local budgets will be put into effect, and the payments will be made to them starting on January 3, 2020.
Information on the details of the new budget accounts is available on the web-portal of the State Tax Service (hereinafter – STS) and subsites of territorial bodies of STS (under the heading "Budget Accounts") and Treasury Departments in Kyiv and regions.
The accounts have been opened by the State Treasury Service of Ukraine in accordance with the Public Sector Accounting Plan approved by the Ministry of Finance No. 1203 of December 31, 2013 (as amended) and in accordance with the requirements of the Law of Ukraine “On the State Budget of Ukraine for 2020”, Budget Code of Ukraine, Order of the Ministry of Finance “On Budget Classification” No. 11 of January 14, 2011 (as amended).
From January 1, 2020, SEA VAT, SEA FS accounts as well as electronic account will be changed. Taxpayers will be able to find their invoices in the private part of the e-cabinet in the “Payer information” section after STS updates the payer's billing information.
The State Tax Service of Ukraine in category 103.04 “ZIR” answered the question “How is the tax base determined and the value of the holiday or health care permit, provided by the employer – payer of corporate income tax free of charge to the taxpayer and/or his or her first-degree family member is taxed?»
Taxation of personal income is regulated by Article IV of the Tax Code of Ukraine (hereinafter – TCU). According to subitem 163.1.1 of the TCU the object of resident taxation is total monthly (annual) taxable income.
The list of income included to the total monthly (annual) taxable income of the taxpayer is defined in item 164.2 of the TCU.
Also, the income determined by Art. 163 of the TCU, is the object of taxation by military levies (subitem 1.2, item 161, section 10 of chapter XX of the TCU).
At the same time, Art. 165 of the TCU determines the income, which is not included to the calculation of the total monthly (annual) taxable income of the taxpayer, in particular, the cost of holiday, rehabilitation and treatment permits, including for the rehabilitation of the disabled, in the territory of Ukraine of the taxpayer and/or his family members' of the first degree of affiliation provided by the employer – payer of corporate income tax free of charge or at a discount (in the amount of such discount) once a calendar year, provided that the cost of the permit (the amount of the discount) does not exceed five minimum wage rates set for January 1 of the tax (reporting) year (paragraph 2, subitem 165.1.35 of the TCU).
The said rule of the subitem entitles the employer not to tax the cost of vouchers provided free of charge or at a discount (in the amount of such discount), if its value (the amount of the discount) does not exceed in 2019 for both the employee and his/her family members (spouse and a child) in the amount of UAH 62 595, i.e. UAH 20 865 per person, provided that the conditions specified in this subitem are met, in particular, once a calendar year.
In addition, according to subitem 1.7, item 161, section 10 of chapter XX of the TCU the incomes which in accordance with chapter IV of the TCU are not included in the total taxable income of natural persons (not subject to taxation, taxed at zero rate), are exempted from taxation by military levy, except for the income specified in subitems 165.1.2, 165.1.18, 165.1.52 of the TCU.
Family members of the first degree of affinity for the purposes of chapter IV of the TCU are considered to be the parents, spouse, children of such natural person, including the adopted (subitem 14.1.263 of the TCU).
The State Tax Service of Ukraine has formed a schedule of documentary checks for 2020.Next year 4.1 thousand of the most risky business entities – legal persons will be inspected in total.
All these businesses are identified as risky. At the same time, almost 1 thousand of them have three high-level tax evasion risks, nearly 550 have four high-degree risks, and about 500 have five or more high-level risks.
In particular, enterprises that have the following risks are selected for inspections:
- the level of tax payment is lower than the level of payment in the respective industry;
- the existence of relationships with wanted liquidated, bankrupt, etc. counterparties;
- existence of information about non-confirmation of the actual implementation of the acquisition transaction;
- differences in the taxpayer information according to the system of automatic comparison of tax liability and tax credit against counterparties (tax credit overstatement);
- carrying out foreign economic operations through non-residents registered in offshore zones.
In general, next year 20% fewer companies will undergo planned examination that this year.
At the end of the year, the State Labor Service of Ukraine clarified whether it was obligatory to approve the staffing list and how the position titles should be recorded.
According to Part 3 of Art. 64 of the Commercial Code of Ukraine the enterprise, i.e. the employer, has the right to independently determine the organizational structure, as well as to determine the number of employees and staffing list.
According to item 1 of Part 1 of Art. 40 of the Labor Code of Ukraine, an employment contract concluded for an indefinite period, as well as a fixed-term employment contract before the expiration of its term may be terminated by the owner or authorized body in case of changes in the organization of production and labor, including liquidation, reorganization, bankruptcy or redevelopment of an enterprise, institution, organization, redundancy or staff.
To date, no normative document has approved the standard form of staffing list, except for enterprises, institutions and organizations with budget financing, which prepare it in accordance with the standard form approved by order of the Ministry of Finance No. 57 of January 28, 2002.
The letter of the Ministry of Labor and Social Policy of Ukraine No. 162/06/187-07 of June 27, 2007 states that the staffing list at the enterprise is a document establishing for this enterprise (institutions, organizations) the structure, staffing and salaries of employees. The staffing list contains position titles, staff numbers and salaries for each position.
Given the need to regulate and enforce workers' rights to work, the protection against unlawful dismissal and remuneration is mandatory. The absence of the latter should be considered as a violation of the requirements of the labor legislation, for which the employer may bear administrative responsibility in accordance with Part 1 of Art. 41 of the Code of Ukraine on Administrative Offenses.
The records on the job title, occupation or position for which the employee is accepted shall be made in accordance with the names of professions and positions specified in the Classifier of Occupations DK 003: 2010, approved by the State Consumer Standards Order No. 327 of July 28, 2010, and in accordance with paragraph 2.14 of the Instruction on the procedure for keeping the employment records of employees, approved by joint order of the Ministry of Labor of Ukraine, the Ministry of Justice of Ukraine and the Ministry of Social Protection of the Population of Ukraine No. 58 of July 29, 1993 (hereinafter – Instruction No. 58). Therefore, business executives, when drafting personnel records (work books, orders, staffing lists, etc.), must record job titles according to the Classifier of Professions.
In accordance with the rules of Appendix 1 to Annex C to the Classifier of Occupations, derivative words may be applied to professional job titles, provided that they maintain sectoral and functional affiliation, qualification requirements, avoid duplication, and retain the code of the newly created profession.
In accordance with the rules of Annex 2, Appendix C to the Classifier of Occupations, professional job titles may be extended by user terms and words specifying the place of work, work performed, the field of activity, provided that the concise reporting, unless otherwise provided for in the Classifier of Occupations or relevant legal acts.
As the Classifier of Occupations is not a normative act, but only a statistical and recommendation document, the State Labor Committee recommends to issue the orders that comply with the professional titles of works, approved by the staff list of the enterprise, with the professional title of the works indicated in the Classifier. The staffing list should also be amended accordingly if the title of a particular position has been correctly spelled out, but subsequently has been changed as a result of the introduction of changes and additions to the Classifier of Occupations.
The General Provisions of the Handbook of Qualification Characteristics of the Occupations of Workers, contained in Issue 1 “Occupations of workers common to all business activities”, approved by Decree No. 336 of the Ministry of Labor and Social Policy of December 29, 2004, provides that a specific list of workers (position) responsibilities are determined by the work (position) instructions of employees of all categories, which are developed and approved by the employer on the basis of a typical qualification characteristic, taking into account specific tasks and duties, functions, rights and responsibility of these groups and features of a staffing list of company, institution or organization.
If necessary, the tasks and responsibilities included in the typical qualification characteristic of a particular profession (position) may be shared between individual contractors, or the range of tasks and responsibilities of individual employees may be expanded with the tasks assigned to them by different groups of professions (positions) equal in complexity, the performance of which does not require another specialty, qualifications.
In the absence of a job title in the Occupational Classifier, which fully corresponds to the duties assigned to the employee, the closest to the content title is chosen, and the job description contains all the features of position duties.
