The Cabinet of Ministers of Ukraine adopted the Resolution “On approval of the list of goods, the export and import of which to be the subject to licensing, and quotas for 2018” of 20.12.17 No. 1018 approved for 2018:
1) volume of the quota of goods, export of which is subject to licensing;
2) a list of goods (ozone-depleting substances), the export and import of which are subject to licensing;
3) a list of goods that may contain ozone-depleting substances, the export and import of which are subject to licensing (except for goods transported in containers with personal property);
4) a list of goods, the import of which from the Republic of Macedonia is subject to licensing within the tariff quota in accordance with the provisions of the Free Trade Agreement between the Republic of Macedonia and Ukraine of January 18, 2001;
5) a list of goods, the export of which is subject to licensing.
In addition, government officials found that the licenses for export and import of goods specified in the resolution of the Cabinet of Ministers of Ukraine dated December 28, 2016, No. 1009 that were not used by foreign economic operators in 2017, would be valid until 01.03.18, unless otherwise provided relevant international treaties of Ukraine.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Taxation of the Personal Income Tax and the War Tax in the Form of Additional Benefit” of 11.12.17, No. 2919/6/99-99-13-02-03-15/ІПК emphasized: if the legal person reimburses the travel, food and accommodation expenses incurred by the individuals (participants of the forum) who are not in labor relations with such a legal person and are not members of its governing bodies, then the amount of reimbursed expenses should be included in the total taxable income of these individuals as an additional benefit and to be taxed by the personal income tax and the war tax.
It should be recalled that the Instruction on business trips within Ukraine and abroad, approved by the order of the Ministry of Finance of Ukraine of March 13, 1998, No. 59, applies only to state bodies and enterprises financed from the budget. Definition of the term “business trip” is contained only in this document. Accordingly, economic accounting companies independently define this concept for themselves.
At the same time, the fiscal service does not give them much freedom in this and even does not mention business trips, answering the question of how to tax reimbursement of travel, food and accommodation costs for individuals who are not employees of a company. Therefore, before the business trips, the representatives of the fiscal department can only refer to the official trips of employees and members of the governing bodies of the company. For other individuals, the amount of reimbursement of such costs will be recognized as an additional benefit with appropriate taxation.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Formation of Tax Credit by Cash Method” of 15.12.17, No. 3007/6/99-99-15-03-02-15/ІПК explained to taxpayers applying the cash method of VA-accounting how to reflect a tax credit, taking into account recent innovations. Namely − after extending “suitability” of a tax invoice from 365 to 1095 days.
The taxpayers replied: the payer, working on the VAT cash method, is entitled to reflect a tax credit for a registered tax invoice/adjustment calculation in the reporting period in which the funds paid for the purchased goods/ services were received or in any subsequent reporting period within 1095 days from the date of the tax invoice/ adjustment calculation.
If registration of the document in URTI was delayed, then it should be included in the current declaration not earlier than during the registration period. Of course, if there is a payment.
We can conclude from the words of the controllers: the limitation period of 1095 days is valid not only for fresh tax invoices, drawn up after 03.12.17, but also for documents drawn up before the introduction of changes.
The Ministry of Finance of Ukraine by its Order “On Approval of the National Public Sector Accounting Standards 136 “Biological assets” of 15.11.17, No. 943 approved the National Public Sector Accounting Standards 136 “Biological assets”, which defined the procedure for accounting for biological assets related to agricultural activity, and obtained in the course of their biological transformation of additional bio assets and agricultural products, as well as disclosure of financial information about them.
This standard will apply to public sector accounting entities.
New National Public Sector Accounting Standards 136, in particular, determines that a biological asset is an animal or plant that, in the process of biological transformation, is capable of providing agricultural products and/or additional biological assets, or otherwise contributes to the economic benefits.
A biological asset and/or agricultural product will be recognized as an asset if the entity of public sector controls the assets as a result of past events, there is a likelihood of future economic benefits and/or utility benefits associated with their use and their value can be reliably determined.
The National Bank of Ukraine simplified the rules for banks to execute documents for foreign currency transactions. This is stated on the official site of the regulator.
Namely: customers are entitled not to certify by a seal the copies of documents provided to the bank for currency transactions. Now, for the assurance that the provided copies of the documents are valid, it is enough for banks to see only the signature of the client or the authorized person on them.
In addition, softening also affected the requirements for banks to report on foreign exchange transactions. Thus, from January 1, 2018, banks no longer need to send a daily information file to the NBU with data on its foreign exchange transactions of clients.
Banks will provide information on foreign exchange transactions of clients to the NBU in updated forms of statistical reporting in accordance with the Rules of the organization of statistical reporting submitted to the National Bank of Ukraine, approved by the NBU resolution dated 01.03.16, No. 129.
The National Bank of Ukraine by its Resolution “On Amendments to Certain Legal Acts of the National Bank of Ukraine” of 21.12.17, No. 137 approved a new version of the Regulation on the Procedure for Granting to Non-Bank Financial Institutions (hereinafter − NFI) and the National Postal Operator of General Licenses on realization of foreign exchange transactions (hereinafter − Regulation).
In particular, the NBU softened the conditions for issuance general licenses for foreign exchange transactions. Namely:
- minimum amount of equity capital of NFI for the conduct of currency exchange activities was reduced by half − to UAH 10 million, provided that such an institution will operate with no more than 50 structural subdivisions. Each subsequent increase in the number of structural subdivisions by 50 units will require an increase in the minimum equity capital by UAH 10 million;
- period of work of NFI in the national currency was reduced from three years to one for obtaining a general license for the execution of the corresponding transactions in foreign currency.
At the same time, the new Regulation sets more stringent requirements for the financial condition, business reputation of managers and owners of significant participation in NFI.
Therefore, in order to be eligible for foreign exchange transactions, non-bank financial institutions will have to meet the requirements for the absence of a cyclical ownership structure and the availability of approval by the competent authority to acquire or increase a significant participation in NFI.
Also, in the event of NFI committing a certain number of material violations or in the event that employees authorized by the NBU are prevented from carrying out a verification of NFI structural unit, the regulator will be able to terminate the general license of the institution.
For non-bank financial institutions that already have general licenses for foreign exchange transactions, it is established a transition period to bring their activities into line with the new requirements. Thus, existing licensees are required to:
- submit to the NBU a questionnaire containing information on the financial position and financial obligations of NFI, the business reputation of managers and owners, relations with other persons during two months from the date of entry into force of the amendments;
- ensure that its activities are in line with the new requirements of the Regulation and submit written assurances to the NBU regarding the compliance of their activities with the requirements of the Regulation during six months from the day of the entry into force of the amendments.
