The Cabinet of Ministers of Ukraine by its Resolution “Some issues of charging of the excise tax from fuel produced in Ukraine and imported into customs territory of Ukraine to local budgets” of 08.02.17, № 96 defined the shares size, under which a part of the excise tax (13.44%) would be divided between local budgets from fuel produced in Ukraine and imported into customs territory of Ukraine in the first half of 2017. The Treasury Department will distribute the funds each next working (banking) day following the receipt of the excise tax.
It is expected also that in the second half of 2017 the share of distribution will be calculated under another formula.
The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the Methodology of normative monetary valuation of agricultural lands” of 16.11.16, № 831 updated the Methodology of normative monetary valuation (hereinafter – NME) of agricultural lands. Amendments came into force 01.03.17.
The information base for the NME of agricultural lands, including lands under farm buildings and yards, is the information of the State land cadastre and land management documentation.
The NME is to be determined in accordance with the norm of capitalized rental income on agricultural lands of natural and agricultural areas of the Autonomous Republic of the Crimea, regions, Kyiv and Sevastopol cities according to the application and indicators of soil valuation by adding scales of normative monetary valuation of agro-industrial groups of soils of natural and agricultural areas (for agricultural grounds).
According to the results of the NME conduction of a particular land plot for agricultural purposes, the territorial authority of StateGeoCadastre (the State Service of Ukraine for Geodesy, Cartography and Cadastre) through the centre for providing administrative services at the land location should issue an extract from the technical documentation for normative monetary evaluation of lands within a period not exceeding three working days from the date of receipt of the relevant application.
The State Fiscal Service of Ukraine in its letter “On filling and submission of tax calculation in the form № 1ДФ” of 16.02.17, № 3874/7/99-99-13-01-01-17 reminded that expenses for business trips that to be subject to the tax (i.e. funds excessively received and not returned in due time), the tax agent should fix in f. № 1ДФ under the sign of income “118”. Tax deductible amounts for business trips should not be reflected in № 1ДФ.
In addition, the tax authorities emphasize that in case of error or inaccurate information in the f. № 1ДФ did not lead to distortions of tax liabilities or changes of the taxpayer, the penalty should not be imposed on the tax agent (para. 119.2 of the Tax Code of Ukraine, hereinafter − TCU).
The State Fiscal Service of Ukraine in its letter “On the paying of advance payment of the income tax when the payment of dividends to the parent company” of 13.02.17, № 2753/6/99-99-15-02-02-15 reminded that advance payment should be calculated from the difference between the amount of dividends to be paid and the value of the subject to taxation for the relevant tax (reporting) year, based on which the dividends to be paid, monetary obligation for which was repaid.
Thus, if the amount of the dividend is less than the subject of taxation of the company for the relevant tax (reporting) year, based on which dividends to be paid and monetary obligation of for which to be repaid, the advance payment should not be accrued and paid.
The Ministry of Finance of Ukraine in its letter “On accounting of expenses on participation in tender” of 27.12.16, № 31-11420-07-16/37214 explained where should be included the expenses incurred by the company during participation in tenders, in particular, for payment of the services of an electronic platform, preparation of tender documents.
According to the representatives of agency, such expenses can be included in the cost structure of sales (if participant became the winner of the tender) or in other expenses of operating activities (if the participant did not win in the bidding).
The Ministry of Finance of Ukraine by its letter “On certain issues related to the application of the Accounting (Standard) Regulation 22 “The impact of inflation” of 10.02.17, № 31-11410-01-2/3710 reported that it would be made amendments to the Accounting Regulation 22 “The impact of inflation” on increasing the value of the cumulative rate of inflation. The relevant draft has been already prepared. This will allow to the business entity not to adjust the figures of annual financial statements for 2016.
It should be recalled that the Accounting Regulation 22 provides for adjustment of the annual financial statements, in particular upon condition of achievement of the value of the cumulative inflation rate of 90% or more. Adjustments should be conducted only by those companies that make public their financial statements.
In 2016 for the first time in the history of national accounting cumulative increase in inflation crossed the appropriate boundary, after which the financial statements data should be adjusted on the inflation component. Therefore, tax officers insisted on adjustment in their explanations.
The Ministry of Finance plans to increase the threshold of adjustment to 100%.
The National Bank of Ukraine by its resolution “On amendments to certain legislative acts of the National Bank of Ukraine” of 23.02.17, № 14, which came into force on February 25, 2017, simplified the conduction of foreign transactions for individuals. Now on the foreign accounts they will be able to place foreign currency sourced outside Ukraine without individual licenses of the NBU. For example, foreign salary, scholarship, pension, alimony, dividends etc. can be placed without a license.
Furthermore, without individual licenses of the NBU, individuals are allowed to invest abroad at the expense of funds outside Ukraine. For instance, to conduct investment from foreign accounts, reinvest funds outside Ukraine, to conduct trade with financial instruments in foreign exchanges etc.
However, the ability to conduct these transactions without license from the NBU does not exempt an individual from the need to declare incomes and pay taxes.
The National Bank of Ukraine in its letter “On removal of export transactions from currency control” of 21.11.16, № 40-0004/95287 reported that export transaction of a resident could be removed from control by the bank only after enrolment of foreign currency and hryvnia equivalent received as a result of compulsory sale of foreign currency, on the current accounts of the resident.
The NBU argues this position by the fact that clearing account has a technical nature and deprived of the status of the current account of the company. Consequently, enrolment of the foreign exchange revenues in favour of residents under foreign trade agreements on such a clearing account can not be considered as enrolment of proceeds for purposes of currency controls.
The Ministry of Social Policy of Ukraine in its letter “On the calculation of average number of staff members” of 04.05.16, № 108/19/71-16 reminded that when the calculation of average number of staff members (line 01 of the Report on employment and employment of disabled people under f. № 10-ПІ) it should be taken into account all categories of workers of payroll Paragraphs 2.4, 2.5 Regulations on statistics of the number of employees, approved by the State Statistics Committee of Ukraine of 28.09.05, № 286, hereinafter − Regulation № 286), except for employees who are on leave due to pregnancy and childbirth or care for children up to the age required by law or collective agreement by the company, including those who adopted newborn baby directly from the hospital (para. 3.2.2 Regulation № 286). Also, it should not be taken into account the external part-timer and people involved in the implementation of works under civil contracts (construction contract) – sub-paras. 2.6.1 and 2.6.2 of the Regulations № 286.
The Ministry of Social Policy of Ukraine in its letter “On indexation of aliments” of 31.01.17, № 13/0/66-17/163 reported that the amount of alimony, determined by the court as a fixed cash amount together with the amount of indexation should not exceed 50% of the money income of the alimony payer. When making this conclusion, the agency employees were guided by para.104 of the Procedure of indexation of money incomes, approved by the Cabinet of Ministers of 17.07.03, №1078.
It should be recalled that the amount of alimony, determined by the court as a fixed cash amount should be indexed below the subsistence minimum established for able-bodied people.
The Ministry of Social Policy of Ukraine in its letter “On provision of accrual of the minimum wages from 01.01.2017” of 14.02.17, № 344/0/101-17/281 indicates that all payments, which are not mentioned in Art. 31 of the Law of Ukraine “On labour” of 24.03.95, № 108/95-ВР, should be accounted in earnings, which compared to the minimum wage. In particular, the following benefits should be accrued over minimum wage (UAH 3 200) for health workers:
- additional payments in the amount of 12% of the salary (wage rate) established for workers employed in jobs with hazardous and difficult working conditions, under the results of attestation of working places (sub-para. 3.4.5 of the Order of the Ministry of Social Policy of Ukraine, the Ministry of Health “On regulation of labour remuneration of employees of health care institutions and institutions of social protection” of 05.10.05, № 308/519);
- additional payment of 10% of the salary (wage rate) to the employees (including nursing assistants) who use disinfectants in their work, and to the employees who engaged in cleaning toilets (sub-para. 3.4.7 of the Order № 308/519).
The following payments should be accounted in the size of earnings in comparison with minimum wage:
- additional payment for combination of professions (positions);
- additional payment for performance of duties of temporarily absent employee;
- additional payment for service area expansion or increase in the executed works;
- additional payment for irregular working hours;
- extra payment for drivers for the special qualification;
- additional payments for academic rank, for academic degree;
- additional payments for length of service;
- production premiums;
- indexation.
The Fund of Obligatory State Social Insurance of Ukraine in case of Unemployment by its Resolution “On the minimum unemployment benefit” of 19.01.17, № 132 confirmed that from April 1, 2017 it would be increased the minimum unemployment benefit for persons for which the amount of assistance to be calculated by the average salary depending on length of service. The minimum amount for these categories of unemployed will amount to UAH 1 280 (now – UAH 1 160).
The amount of assistance remains at the level of UAH 544 for people who are prescribed the unemployment benefits in the minimum amount (those with less than six months of service before registering as unemployed, who fired from the last work under Art. 37, paragraphs 3, 4, 7 and 8 of Art. 40, Articles 41 and 45 of the Labour Code of Ukraine, as well as displaced persons without proper documents).
