The President of Ukraine signed the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Concerning Elimination of Barriers to Attraction of Foreign Investments” of 23.05.17, No. 2058-VIII. This legal act simplifies the procedures for granting permits for the employment of foreigners and certificates for temporary residence.
In the case of attracting foreign highly paid professionals, their work can be applied without permission to positions of a part-time, if the period of validity of the employment contract in the position of a part-time does not exceed the validity period of the permit for the main place of work.
The law also grants the right to obtain a residence permit in Ukraine for foreign investors who have a significant share in Ukrainian enterprises (the size of the share is not less than 100 thousand euros), but not employed by them. This will allow them to spend enough time in Ukraine to control the activities of enterprises.
The Cabinet of Ministers of Ukraine by its Resolution “On Certain Issues of Remuneration for Workers of the Centres of Social Services for Family, Children and Youth” of 21.06.17, No. 435, adopted allowances depending on the length of work to the heads of centres for social services for families, children and youth, their deputies, heads of structural units according to the main type of activity and specialists in social work in the following sizes:
- over 3 years − 10%;
- over 10 years − 20%;
- over 20 years − 30%.
These allowances are introduced in order to reduce staff turnover in this area. After all, with the transition to new conditions of remuneration, 2793 workers lost the opportunity to receive an allowance for retirement, of which 955 employees have an employment record of more than 10 years, 405 − more than 15 years, 162 − more than 20 years, 46 − more than 25 years.
The State Fiscal Service of Ukraine in the individual tax consultation “On conducting a documentary unscheduled inspection on the written application of the taxpayer” of 07.06.17, No. 537/6/99-99-12-03-02-15/ІПК emphasized that payers who filed a notice on the loss of primary documents in the ATO zone, can not be verified by the controlling authority in respect of the periods specified in the notification, including after completion of the ATO. In addition, this applies to documentary unscheduled inspections by the written application of the payer himself/herself.
This is substantiated by the fact that, temporarily, until the completion of the ATO, special rules for confirmation of the data specified in the tax reporting are applied to payers who were engaged in activities in the temporarily occupied territory and/or the territory of settlements situated on the collision line and can not present the primary documents on the basis of which the accounting of incomes, expenses and other indicators related to the definition of tax objects and/or tax liabilities.
The reasons for impossibility of presenting primary documents are that the primary documents:
- were lost (destroyed or damaged in connection with the ATO);
- are in the area of settlements in the temporarily occupied territory and/or the territory of settlements situated on the collision line that can not be removed or removed from that territory due to the risk to the payer's life and health or impossible in connection With other administrative obstacles established by the authorities.
In case of loss and/or impossibility of removal of primary documents, the payer at the place of his/her registration should submit to the controlling authority a notice in an arbitrary form, signed by the head of the company and the head of the chief accountant. It indicates the circumstances that led to the loss and/or impossibility of exportation of the primary, calendar periods (day/month/year), as well as a general list of primary documents (if possible, with details of the requisites).
After submission to the supervisory authority a notice of inability to export primary documents before the completion of the ATO, it should be imposed a moratorium on any inspections regarding tax (reporting) periods fixed in the notification.
The State Fiscal Service of Ukraine in the individual tax consultation “On correction of the financial results before taxation on the amount of bad debt consolidation” of 15.06.17, No. 673/6/99-99-15-02-02-15/ІПК explained under which conditions receivables can be recognized as bad if the counterparty was declared bankrupt.
Thus, the fiscal authorities indicate that a sufficient condition for recognizing the debt as bad in accordance with sub-para. “з” of para. 14.1.11 of the Tax Code of Ukraine (hereinafter − TCU) is the existence of resolution of an economic court on the recognition of a debtor by a bankrupt, approved at a court session with the participation of the parties, or termination of a legal person, which is confirmed by the entry in the Unified State Register.
If a company applies differences from sec.3 of TCU, then in this case, the result of the tax can be reduced by the amount of the debited receivable (including by creating a reserve of doubtful debts) after receiving the documents confirming the compliance of receivables with the attributes specified by sub-para. “з” of para.14.1.11 of TCU.
The State Fiscal Service of Ukraine in the individual tax consultation “On the Unified Tax of the Fourth Group” of 15.06.17, No. 669/6/99-99-12-02-03-15/ІПК clarifies under what conditions could be the transfer of land plot to the farm enterprise (hereinafter – Farm) from the individual who rents a specified area him/herself and is the founder of the Farm.
Consequently, the inclusion of such land plots in the capital of the Farm and the tax return of the unified tax payer of group 4 is possible without the conclusion of an additional sublease agreement with the individual. In this case, such a transfer must be confirmed either by the act of acceptance-transfer of the right of lease of a land plot, or by the charter of the Farm.
At the same time, the right to lease on such a plot of land is made for an individual. Therefore, the obligation to pay the land tax also remains for him/her.
The State Fiscal Service of Ukraine in the individual consultation “On payment (transfer) of taxes and fees in connection with the application of sanctions to the enterprise” of 15.06.17 No. 670/6/99-99-15-01-01-15/ІПК notes that TCU does not provide for a mechanism for exemption from payment (transfer) of taxes and fees and reporting in connection with the application of any sanctions to the company.
It should be recalled that the Decree of the President of Ukraine dated May 15, 2017 No. 133/2017 introduced the decision of the National Security and Defense Council “On the Application of Personal Special Economic and Other Restrictive Measures (Sanctions)” of 28.04.17. This decision of the National Security and Defense Council approved for enterprises a clear list of restrictive measures (for a period of three years), in particular:
- asset blocking − temporary limitation of the right of a person to use and dispose of his/her own property;
- suspension of execution of economic and financial obligations.
The Ministry of Finance of Ukraine by its Order “On Approval of the Procedure for informing of employers of taxpayers on the existence of violations of the application of tax social benefits, deprivation of the taxpayer or regaining of its right to tax social benefit and forms of notification of violations” of 19.05.17 No. 514 approved a new Procedure for informing of taxpayer employers of the existence of violations of the tax social benefit, deprivation of the taxpayer or restoration of his/her right to a tax social benefit and forms of notification of the existence of violations. Its norms are compared with the text of the predecessor (the order of the Ministry of income and collections of Ukraine “On Approval of the Procedure for informing of employers of taxpayers on the existence of violations of the application of tax social benefits, deprivation of the taxpayer or regaining of its right to tax social benefit and forms of notification of violations” of 27.01.14, No. 86) have undergone only minor adjustments: “The Ministry of revenues” is replaced by “SFS” in the text. Thus, the mechanism of informing remained unchanged.
It should be recalled that if a payer submits an application for social insurance to more than one employer, he/she loses the right to a benefit at all places of income receipt. To restore the right to social benefits, he/she should file an application for waiver of social benefits for all places of application. On its basis employers should keep the amount of underpaid tax and 100% of the fine from the amount of underpayment (paras. 169.2.4 of TCU).
The State Service of Ukraine on Labor issues in its letter “On the registration of trainees − students of vocational schools at the place of practice” of 19.05.17 No. 5783/4.1/4.1-ДП-17 notes that it is not necessary to formalize labor relations with trainees − students of vocational schools during the production practice (training). Also, it is not necessary to inform the SFS of the employee’s acceptance when concluding an agreement on educational and production practice.
It should be recalled that the company, counting salary of trainees should withhold 18% of income tax and 1.5% of the war tax from this entire amount. In addition, 50% of the amounts of the salary after the taxation of the industrial practice of students, students of vocational schools are sent to the account of an educational institution (sec. 4 of Art. 53 of the Law of Ukraine “On Education” dated May 23, 1991 No. 1060-XII).
