The President of Ukraine signed an executive order “On transfer to the reserve of servicemen of compulsory military service during mobilization, for a special period, called during the third stage of the partial mobilization in accordance with the Decree of the President of Ukraine dated January 14, 2015 № 15” of 26.09.16, № 411/2016, having declared thereby the demobilization of soldiers, called up in 2015 during the sixth wave of partial mobilization. After the entry into force of this document - from the date of its official publication – the defenders of the Motherland will be returned to their families (it is planned to be done during September - October). The Decree provides for the exemption the military personnel in the reserve, except for those who have expressed a desire to continue their service.
Demobilized should be provided with a set of Army Combat Uniform of season and food during their journey home.
The government is instructed to ensure financing and take another action within the powers related to the dismissal of military personnel in the reserve, in particular, their transportation to the place of residence.
The Cabinet of Ministers of Ukraine adopted a resolution “On the implementation of the pilot project on the temporary restriction of the use of the Resolution of the Cabinet of Ministers of Ukraine dated December 25, 1996 № 1548 and the Resolution of the Cabinet of Ministers of Ukraine dated October 17, 2007 № 1222” of 22 09.16, № 656, which started a pilot project aiming at the cancelling of the price regulation on food products from October 1, 2016 for a period of three months.
There will be carried out a careful monitoring of the prices during this period, following which the further destiny of the price regulation on food will be decided. If it is determined that the state regulation only makes worse the price movements and increases the cost of products, the restriction will be cancelled.
In particular, the pilot project provides for the cancellation of the declaration of change of wholesale selling prices of wheat flour of the highest quality, first quality and second, rye flour, buckwheat groats, beef, pork, poultry, sausages boiled, cow’s milk for drinking (pasteurized, packed), cheese, sour cream, butter, eggs, sugar and sunflower oil.
Additional costs for the administration of this “regulation” are included in the cost of sales by business, and as a result the prices of the relevant products are growing faster than the consumer basket as a whole. It is expected that the cancellation of the fictitious price regulation gives a boost to the development of farming, food production and, as a consequence, an increase in the number of jobs.
The Cabinet of Ministers of Ukraine by its Resolution “Some issues of pension provision of certain categories of persons” of 14.09.16, № 622 regulated the appointment of state employees’ pensions, which civil service experience was more than 10 years and who received a pension under Art. 37 of the Law of Ukraine “On State Service” of 16.12.93, № 3723-XII, became invalid.
According to paragraphs 2, 10 and 12 of current Law of Ukraine “On State Service” of 10.12.15, № 889-VIII, the pension for the state employees to be appointed, taking into account all types of remuneration, from which it is paid the unified contribution and within the maximum value of the accrual base of the unified contribution established by the law on the day of pension appointment. The pension will be 60% of wages mentioned above.
The State Fiscal Service of Ukraine in its letter “On the application of the norms of the Tax Code of Ukraine in the implementation of the transactions of supply of goods/services, financed by the international technical assistance” of 30.08.16, № 18757/6/99-99-15-03-02-15 reported that for the domestic supply and imports of goods and services, financed by the international technical assistance provided in accordance with international treaties, it was provided the benefit on the value added tax (hereinafter - VAT) (paragraph 197.11 of the Tax Code of Ukraine; hereinafter - TCU). Controllers explained that it is not necessary for the provider - the side that sells goods to the executor of the project - to accrue a conditional VAT on such goods/services. In this case, para.198.5 of TCU is not applied.
Also, the controllers noted: the price in the contract with the contractor of the project for the supply of goods for international technical assistance should be indicated “Without VAT”.
The State Fiscal Service of Ukraine in its letter “On the reflection in tax accounting for income tax of transactions for formation of provisions on the payment of pension obligations on favourable terms for working employees and non working employees who earned favourable length of service at the company until they reached 60 years of age” of 29.08.16, № 18673/6/99-99-15-02-02-15 explained for those who made adjustment under sec. III of TCU, the order of tax and profitable accounting of provisions on the payment of pension obligations on favourable terms for working and non-working employees who earned favourable length of service at the company until they reached 60 years of age, and actual payments at the expense of the previously established provisions for such payments.
According to the tax authorities, they are classified as payments related to salaries. Therefore, when calculating of the income tax, the financial result before tax is not to be increased according to the para. 139.1.1 of TCU on the amounts of formed provisions on the payment of pension obligations on favourable terms of employees mentioned above and the amount actually paid by the previously established provisions for such payments.
The State Fiscal Service of Ukraine in its letter “On the taxation of the aid accrued for categories of students, determined by sub-para.1 of para.24 of the Procedure of the appointments and payment of scholarships” of 25.08.16, № 18440/6/99-99-13-02-03-15 noted that the aid paid to certain categories of students (sub-para.1 of para.24 of the Procedure of appointment and payment of scholarships, approved by the Cabinet of Ministers of Ukraine (hereinafter -CMU) of 12.07.04, № 882), should be taxed at the rate of 18% of the income tax and 1.5% of the war tax (sub-para. 164.2.20 of TCU). Such amounts should be reflected in f. № 1DF with the sign of income “127”.
It should be recalled: educational institution can use 10% of the funds provided for scholarships, or the payment of financial assistance for students (para. 7 of the procedure for appointment and payment of scholarships approved by the CMU of 12.07.04, № 882).
The State Fiscal Service of Ukraine in its letter “On taxation by the entrepreneur of funds contributed as top up of telephone bills of individuals” of 15.09.16, № 6052/П/26-15-13-02-15 notes that the top up of telephone bills is an additional benefit for an individual. At the same time, the entrepreneur (or legal entity), which tops up the phone bills of ordinary individuals from his/her funds (to encourage them as clients), has the duty of a tax agent only under the condition that such income is personalized, that is, if it is possible to identify the recipient of income. Therefore, the top up of an account of a specific mobile phone at the expense of the entrepreneur is an additional benefit, and the entrepreneur is a tax agent when the provision of such income. However, the top up of mobile accounts for the indefinite number of persons at the expense of the entrepreneur (legal entity) is not subject to the income tax. In addition, as the tax authorities note, the fact of registration of a mobile phone is not enough to identify the person - recipient of income.
The Ministry of Internal Affairs of Ukraine by its Order “On Approval of the Procedure for the production of applications for registration of documents for leaving of Ukrainian citizens abroad for permanent residence” of 16.08.16, № 816 determined the procedure of the reception of applications and the review process of the preparation of documents for the departure of Ukrainian citizens abroad for permanent residence. In particular, now such an application could be submitted both in paper and in electronic form. In the latter case, it should be filled in by an employee of the territorial division of the State Migration Service of Ukraine.
In addition, a clear list of documents, which should be submitted together with the application, is prescribed in the order.
If the applicant within six months from the date of the decision on the process of documents for leaving abroad for permanent residence does not apply to the territorial authority of the State Migration Service for registration of these documents, the decision is null and void.
The Social Insurance Fund on temporary disability in its letter “On the calculation of the average wage to calculate the payments on obligatory state social insurance” of 20.09.16, № 2.4-46-1616 notes: if when the determination of the average daily earning, a full month is excluded, the amount of wages accrued during this period (financial assistance, bonuses, etc.) should be not taken into account.
It should be reminded those months during which the employee did not work for valid reasons (from first day of the month to the next first) should be excluded from the calculation of the average daily earnings. These reasons are calendar days of sick leave, maternity leave, and leave without pay.
