The Cabinet of Ministers of Ukraine lifted a ban on space activities for private companies. Such decision was taken to implement the Law of Ukraine “On Amendments to Certain Laws of Ukraine on State Regulation of Space Activity”.
In particular, it is provided that from now on the private businesses will be able to obtain permit to conduct the following space activities:
1) testing (except for computerized) of launch vehicles, including their aggregates and components and spacecraft;
2) launching of launch vehicles and/or spacecraft;
3) control of spacecraft in Earth orbit or in space;
4) return of spacecraft and/or their components from Earth's orbit or outer space.
In addition, private enterprises intend to carry out space activities must submit a declaration on the business activity to the central body of executive power that ensures the implementation of state policy in the field of space activities. Such declaration is an instrument of entry into the space technology market for private space entities.
The State Tax Service of Ukraine through the Office of Large Taxpayers in letter «On the practical application of the legislation» No. 643/ІПК/28-10-30-02-10 dated February 17, 2020 stated that the value of the permanent ticket purchased by the company, including the value added tax paid (hereinafter – VAT) is the basis for accruing a unified social tax (hereinafter – UST).
After all, the basis for the UST accrual for employers includes the amount of accrued basic and additional salaries, other incentive and compensatory payments, to each insured person, including in kind.
Other incentive and compensation payments of the payroll fund include: payment for an apartment or rented accommodation, hostels, goods, grocery orders, health group subscriptions, subscriptions to newspapers and magazines, prosthetics, compensation for the value of fuel issued to employees in cases not provided for by current legislation.
Considering that the subscription payment is credited to the payroll fund, then the UST is accrued for such payment in the prescribed manner.
At the same time, the payroll in kind equates to the supply of goods in terms of VAT. Therefore, it is subject to VAT.
The State Tax Service of Ukraine on its Facebook page has published post refuting the information that a new tax is being introduced and that now all the funds received on private cards will be taxed.
Taxation will be made only in the cases provided for by current legislation.
The State Tax Service noted that information on bank accounts of ordinary natural persons (other than SPs) can only be provided by the bank:
- at the request of the State Tax Service (hereinafter – STS) – regarding the presence of bank accounts;
- by court decision - about the cash flow or any other information about the account.
Therefore, if the STS finds out about the account number of the individual, then it must go to court to obtain more information about him/her (about the cash flow, etc.).
The State Regulatory Service of Ukraine addressed an official letter to the Ministry of Finance of Ukraine requesting to calculate the costs of implementing state regulation for small businesses.
The Draft orders of the Ministry of Finance of Ukraine (hereinafter – the draft order) are under consideration by the State Regulatory Service of Ukraine (hereinafter – SRS):
- “On Amendments to Order of the Ministry of Finance No. 547 of June 14, 2016”;
- “On Amendments to Order of the Ministry of Finance No. 13 of January 21, 2016”.
These drafts are by-laws and elaborated as a result of the adoption of Law of Ukraine “On Amendments to the Law of Ukraine “On application of payment transaction recorders in the Sphere of trade, catering and services” and other laws of Ukraine on the de-shadowing of settlements in the sphere of trade and services” No. 128-IX dated September 20, 2019, as amended, in particular, to Law of Ukraine “On the application of payment transactions recorders in the sphere of trade, catering and services” No. 265/95-BP dated July 6, 1995, which laid the legal grounds for the introduction of:
- SW-based payment transaction recorders (hereinafter – PTR) as an alternative to ordinary PTR;
- the settlement document, fiscal check, fiscal report created by the SW-based PTR and/or PTR in electronic form;
- the fiscal server of the controlling body whose software is used to register SW-based PTR, electronic settlement documents, fiscal checks and fiscal reports created by SW-based PTR;
- at the same time as the National Bank's technology, which provides protection of information on performed settlement transactions, application of qualified electronic signature, qualified electronic timestamp in compliance with the requirements of the Law of Ukraine “On Electronic Confidential Services” and/or other authorized protection of information provided by Ukrainian legislation.
In order to thoroughly study the regulations proposed by the drafts and to check the qualitative study of their impact on the representatives of the respective business environment, the SRS addressed the Ministry of Finance of Ukraine as the developer of the draft projects. The main requirements are to assess the losses for the introduction of state regulation for small businesses (M-test) in accordance with Annex 4 to Methodology for carrying out the analysis of the impact of a regulatory act approved by the Cabinet of Ministers of Ukraine No. 308 of March 30, 2004 (as amended, by Resolution of the Cabinet of Ministers of Ukraine No. 1151 dated December 16, 2015), as well as provide additional explanations on certain parameters that were taken as a basis during the developer's calculations of costs of business entities related to the implementation of regulation orders proposed by the drafts.
The State Labor Service of Ukraine has explained how to properly formalize employment relations.
When is it necessary to conclude an employment contract?
It is necessary to conclude an employment contract with an employee if:
- you appoint him to a position with specific responsibilities, determine his working hours and working hours;
- you control how, when and where the employee performs the work;
- you pay a fixed hourly, weekly or monthly salary;
- you pay for the work process, not for the result;
- you provide materials and equipment to perform the work;
- you provide days off and paid vacations, and more.
Are the rules governing the registration of employees for legal persons, individuals or sole proprietors (SP)?
The order of registration of employment relations with employees is the same for all employers. It has three main steps:
- conclusion of an employment contract;
- registration of the employment order;
- notifications to the State Tax Service.
Documents to be provided by the employee for the contract
To conclude an employment contract, the employee must provide:
- passport or other identity document;
- individual tax number;
- employment record book (if available).
If required, you may be asked to provide education documents, health information, and more.
It is forbidden to require employees to provide information about their party and nationality, origin, registration of residence or residence.
Is it obligatory to enter into a written employment contract?
The employment contract can be concluded orally or in writing.
Written form is required:
- when the employee insists;
- in the case of an organized recruitment of employees;
- when working in areas with special natural conditions and high health risks (for example, radioactively contaminated territory);
- subject to the conclusion of the contract;
- in the case of concluding a contract with a minor;
- if the employer is a sole proprietor or an individual;
- for employees of religious organizations;
- for employees undergoing alternative service;
- for employees involved in community service;
- for farm workers.
In other cases, an oral contract may be concluded. This requires the employee to write a job application for the supervisor. In turn, the supervisor notes the decision on the application.
Form of employment contract
If you are an individual or a sole proprietor, then you must use an approved form.
If you are a legal entity, then you can use an arbitrary form of contract, stating:
- work responsibilities of the employee;
- work and vacation schedule;
- benefits, guarantees, compensation;
- remuneration and bonuses;
- surcharges, allowances and more.
Types of employment contracts
An employment contract can be:
- perpetual;
- for a fixed term;
- for the period of performance of certain work.
After the employment contract has been concluded, it is necessary to issue an order for hiring an employee.
Actions after the conclusion of the contract
The STS must be notified of the employee's hiring.
It is important to note the following:
- the notification is submitted in the approved form before the employee begins to work;
- this is done by the business owner, the individual or natural entity authorized by owner at the place of registration as payers of the UST;
- the notification can be submitted in soft or hard copy (up to five employees);
- the information provided is entered in the register of insurers and the register of insured persons.
