Legislative Review

March 26 - 30, 2018. The Code of Commercial Accounting of Electrical Power is approved in Ukraine

The Cabinet of Ministers of Ukraine by its Resolution “On Certain Issues of the Appointment of Heads of Business Entities of the Public Sector of the Economy and their Supervisory Councils” of 21.03.18, No. 190 introduced amendments to normative acts regulating the issue of the appointment of heads of business entities of the state sector of the economy and members their supervisory councils.

The subjects of management of objects of state property, determined especially important for the economy of the company (the assets value of which according to the latest financial statements exceeds UAH 2 billion or annual net income exceeds UAH 1.5 billion), obliged to submit to the Government information on the following:

  • opening a vacancy of the head of the company - not later than 5 days after its opening;
  • expiration of the contract with the head of the company - not later than a month before its expiration;
  • announcing the selection of the head of the company together with the relevant documents - no later than 3 days after the decision;
  • temporary assignment of duties or appointment of the acting head of the company - no later than 5 days after the decision.

Also, the procedure for selecting and concluding a contract with the heads of the largest state-owned enterprises was changed. From now on, the Committee on the appointment of directors will be set up by the Cabinet and will consist of 8 members. A company within three working days after the announcement of the selection will determine its representative in the appointment committee. In addition, under the jurisdiction of the Cabinet, a commission will be formed to select the leaders of the largest state-owned enterprises. It will submit proposals on requirements for applicants for the position of heads of state enterprises, collect information about the company, whose manager has announced the selection, etc.

The decree changed the procedure for announcing the winner of the competitive selection for the position of the head of the state enterprise, and the commission of the company granted the right to make a motivated decision to reject all proposals of the participants and to re-conduct competitive selection.

The Cabinet of Ministers of Ukraine by its Resolution “On certain issues of providing benefits in cash in the form of travel payment for all types of public transport in urban, suburban and interurban routes” of 14.03.18, No. 197 approved the Procedure for providing benefits in cash in the form of travel payment for all types of general transport use on city, suburban and long-distance routes.

From now on instead of benefits for travel in transport privileged persons will be provided with monetary compensation, the amount of which will be determined annually by the regions, Kyiv city state administrations for the relevant year. Compensation will be paid monthly by the social protection management. If the cost of travelling in public transport will change - the amount of compensation will be revised from next month.

It is provided that persons with disability of group I or children with disabilities will receive compensation in double amount.

Also, the monthly cash payment to be doubled for persons with disabilities of groups I, II and children with disabilities who study in general education, vocational schools and higher educational institutions or undergo rehabilitation.

It is planned that the monetization of benefits will eliminate injustice of uneven access to it, and beneficiaries will be able to spend the money they receive at their discretion.

Local self-government bodies may not make a decision to grant travel privileges in cash. Then the appropriate benefits will continue to be provided in non-cash form.

The State Fiscal Service of Ukraine in its letter “On changes in the issuance of permits for special water use in 2018” of 29.01.18, No. 2646/7/99-99-12-03-04-17 clarified that the functions of issuing permits special water use will be carried out by territorial bodies of the State Agency of Water Resources of Ukraine.

This explanation is due to the fact that on January 1, 18 the definition of the circle of renters for special use of water has been changed. Namely - the duty of the payer from the rent is charged to the subjects of management belonging to the primary water users who use and/or transfer to the secondary water users the water received by taking water from the water objects without giving preferences to the budgetary institutions that belong to primary water users.

Permits for special water use, issued before 03.06.17, are valid until the expiration of their validity. By the way, since 01.01.19, the information on the issuance of permits for special water use will become a mandatory element of the Unified State Register.

The State Fiscal Service of Ukraine by its letter “On Amendments to the Procedure for the Registration of VAT Payers” of 20.03.18, No. 8113/7/99-99-08-01-04-17 reminded that on 16.03.18 the Order of the Ministry of Finance of Ukraine  of 16.01.18 р. № 7, which amended the Regulation on registration of tax payers of value added tax, entered into force.

The amendments, in particular, stipulate that the controlling authorities in the regions and Kyiv city, the Office of Large Taxpayers of the SFSU and the state tax inspectorates under their jurisdiction should take measures for the registration and registration of VAT payers located in their territory. Previously, these powers were exercised by the Main Directorate of the SFSU in regions and Kyiv city and the interregional head offices of the SFSU.

Also, the order of registration of persons formed through transformation is regulated. If the legal entity formed as a result of the transformation has not submitted to the controlling body within 10 working days following the completion date of the transformation, applications for registration or re-registration, the tax authorities, after the expiration of this term, decide to cancel the registration of the legal person terminated as a result of the transformation.

In addition, it is foreseen the possibility of signing decisions on cancellation of registration and decisions on the abolition of such decisions, not only the head but also the deputy head and authorized person of the controlling body.

The Ministry of Health of Ukraine by its Order “On Approval of the Procedure for the Provision of Primary Health Care” of 19.03.18, No. 504, which approved the relevant document.

On July 1, 2018, all primary care providers should be guided by it.

Ukrainians will be free to choose their own doctor: a therapist for themselves, a paediatrician for a child or a family doctor for the whole family. According to the procedure, therapists, paediatricians and family physicians will observe their health, diagnose and treat the most common illnesses, injuries, and poisoning. They will also lead patients with chronic illnesses. If necessary, the doctor will give the referral to a specialist secondary or tertiary care – ORT specialist, endocrinologist, surgeon, etc.

The primary health care provider’s competence is the observation of a healthy child, uncomplicated pregnancy and certain palliative care services. The doctor will also issue the necessary certificate, a certificate of disability, a referral for medical and social examination, etc.

It is possible to make an appointment to a doctor in person, by phone, by e-mail or by other means available.

As before, the doctor can go to the patient home if necessary. But from now on, they will discuss this issue in person. Based on information from the patient, the physician will evaluate the situation and make a decision on in-home consultation. It is not about emergency assistance - the emergency aid service will work in the usual mode.

If the selected doctor goes on vacation, the medical institution should ensure its replacement. Patients will be informed about this in advance.

The National Bank of Ukraine in its Letter “Clarification on Cash Transactions by Separate Subdivisions of Enterprises” of 07.03.18, No. 50-0007/13560 expressed its position on how a separated unit should enter cash in the books, if it does not keep a cash book.

Representatives of the National Bank believe that if separate units transfer their cash proceeds to the cash desk of the bank through the cash service, then transactions through the cash book of the parent company is not required. Since such a transaction will be considered as non-cash for it.

However, in this case what should be entering cash in the books for a separate unit?

In addition, many units continue to work and receive revenue after collection. What to do with the cash in this case? These questions have no response.

The National Regulatory Commission on Energy and Utilities (NKREKP) by its Resolution “On Approval of the Code of Commercial Accounting of Electrical Power” of 14.03.18, No. 311 which approved the Commercial Accounting Code for Electricity. The document defines the mechanisms of observance of equal rights and non-discrimination of the participants of the electricity market.

The Code of Commercial Accounting of Electrical Power establishes the rules for commercial accounting of electric energy in the Ukrainian electricity market, processes and procedures for ensuring the formation of data on the volume of produced, transmitted, distributed, consumed, imported and exported electricity in order to use such data in the market of electric energy, rights responsibilities of the parties in relation to the organization of commercial accounting of electric energy and obtaining accurate and reliable commercial accounting data for the implementation of the commercial calculations.

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