The President of Ukraine signed the Law of Ukraine “On the National Commission for the state regulation in the energy and utilities” of 22.09.16, № 1540-VIII. These laws and regulations enshrines the organizational and legal aspects of establishment and activities of the National Commission for the state regulation in the energy and utilities (hereinafter – NCREU).
The decisions of the NCREU are not the subject to approval by the public authorities, except in cases provided by the legislation on protection of economic competition.
In order to guarantee the independence and impartiality of this agency, its members will be appointed according to the results of open competitive selection for taking this position. A term of authority of NCREU member will be six years.
Financing of the NCREU will be at the expense of the contributions to regulations that will be paid by the business entities which activities are regulated by the NCREU. The maximum amount of this contribution is 0.1% of net revenue of the contribution payer to the regulation of activities in the spheres of energy and utilities for the previous quarter.
The right to exercise the state regulation, monitoring and control over the activities of business entities in the sphere of energy and utilities fall within the competence of the NCREU. In particular, the production, transfer, electric supply, activities in centralized water supply, drainage and thermal energy at levels above the level set by the licensing conditions; activities on oil transportation, petroleum products and other by substances pipelines and natural gas.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Standard form of land rental agreement” of 23.11.16, № 843 improved standard form of land rental agreement. Thus, its parties during the preparation of the contract will have the possibility of concluding one land rental agreement for several land plots of one landlord.
In addition, the terms of land lease are specified: agricultural - not less than seven years, and in the case of lease for conduction of commercial agricultural production, farming, personal farming of land plots for agricultural, which are plots of reclaimed lands and on which the hydraulic engineering reclamation is conducted, - not less than 10 years.
The parties must agree only facility lease (cadastral number, location and size of a land plot), the term of a lease contract, rental payment with an indication of its size, indexation, method and terms of payment, terms, procedure of its entering and revision and responsibility for its failure to pay.
The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the Methodology of normative monetary evaluation of agricultural lands” of 16.11.16, № 831 adopted separate methodology for determining of normative monetary evaluation of agricultural lands. Normative monetary evaluation of agricultural lands will be conducted separately under agricultural lands (arable land, perennial plants, hayfields, pastures, reserves) and non-agricultural lands at the agricultural lands.
The territorial agency of the State Service of Ukraine for Geodesy, Cartography and Cadastre (StateGeoCadastre) (through the centre of administrative services) at the location of land should issue an extract from the technical documentation for regulatory monetary evaluation of lands according to the results of normative monetary evaluation of separate land or agricultural purposes. At the same time, this period should not exceed three working days of the date of receipt of the relevant application.
Normative monetary evaluation of agricultural lands will be determined according to the norm of capitalized rental income on agricultural lands of natural and agricultural areas of the Crimea, regions, Kyiv and Sevastopol Cities, which are approved by the Government, and indexes of soil appraisal by preparation of scales of normative monetary evaluation of agro-industrial groups of soils of natural - agricultural areas (for lands).
The State Fiscal Service of Ukraine in its letter “On the adjusting of the financial result before tax on the formed provision for payments related to salaries” of 15.11.16, № 24551/6/99-99-15-02-02-15, № 24551/6/99-99-15-02-02-15 explains in which case those who have profit do not make tax adjustments in respect of created provisions at the other payments related to salaries (sub-para. 139.1.1 of TCU). Thus, according to tax authorities, there should be included in the payments related to salaries, the costs of the companies under programs for pension provision (including short-term payments to employees, payments after the end of work, other long-term payments to the employees, payments in case of dismissal).
Therefore, if the provisions (reserves) are made to compensate future expenses under other payments related to salaries, total cost of the formation of such a provision does not increase the financial result for the purposes of imposition of the tax on income.
The State Fiscal Service of Ukraine in its letters “On the use of report of the subject to evaluation activity as a source of information on market prices for the purposes of transfer pricing” of 15.11.16, № 24576/6/99-99-15-02-02-15 and “On certain issues of transfer pricing” of 18.11.16, № 24927/6/99-99-15-02-02-15 reports: information on prices of comparable uncontrolled transactions, reflected in the report of the appraiser, can be used as one of the information sources to establish compliance with conditions of controlled transactions of “arm’s length” principle.
In addition, according to tax authorities, commercial databases of companies such as BureauVanDijk (Orbis, Amadeus, RUSLANA), “Interfax” (“Spark”) can be also used as a public source of information on comparable transactions for mentioned purposes.
Controllers also noted that the content of the guidelines of the Economic Cooperation and Development on transfer pricing for multinational companies and tax authorities could serve as a guide toward the choice of application of methods of transfer pricing.
The State Fiscal Service of Ukraine in its letter “On determining the cost of a qualifying asset” of 18.11.16, № 12293/Ф/99-99-15-02-02-14 reported an important nuance of calculation of the size of tax adjustments of financial results for “non-residential” interests. Thus, when assessment of the excess amount in accordance with para. 140.2 of TCU, it should be taken into account the full amount of accrued interest in accounting regardless of whether they reflected during the formation of financial results before taxation under the rules of accounting. This means that capitalized interests included in the cost of qualifying assets are also taken into account.
The Ministry of Justice of Ukraine in its order “On Approval of Requirements for registration of the statements and solutions in the field of state registration of rights to immovable property and their encumbrances” of 21.11.16, № 3276/5 noted: statements in the state registration of real rights to immovable property and their encumbrances should be issued with the help of software of keeping the State register of real rights on immovable property.
Compulsory components of such a statement should be the registration number of object of immovable property (if at the moment of preparation of the statement, the appropriate number assigned to the property via software of keeping the State Register rights) and cadastral number of land plot (if the statement is submitted on land).
The paper form of this statement should be signed by the applicant (s) and the person who has formed such a statement. And the digital signature of the applicant (s) should be imposed on the statement in electronic form.
The Ministry of Social Policy of Ukraine in its letter “On re-employment” of 28.10.16, № 1500/13/84-16 reported that in case of reinstatement of the employee at work by a court decision, he/she has the right to use the annual basic leave for all the time of forced absence. The duration of the leave should be determined in proportion to the date of reinstatement to the end of his working years.
It should be noted that if during the dismissal there were paid monetary compensation for unused annual leave to the employee, so he/she does not have the right for the use of the leave days. Also it is not provided the return of the compensation by the employee paid him/her during the dismissal or including of compensation in the paid amount for the leave provided or a period of forced absence.
The National Bank of Ukraine by its Resolution “On Amendments to the Regulations on the procedure for obtaining of credits, loans in foreign currency from non-residents by residents and providing of loans in foreign currency to non-residents by residents” of 22.11.16, № 404 simplified the conditions of access of domestic business entities to foreign currency loans with the participation of export credit agencies (hereinafter - ECA). Thus, when control over the size of resident payments for credit use, it should not be taken into account the payments provided to the non-resident by the resident for the reimbursement of actual costs of non-resident for services (rewards, bonuses, commissions, etc.) of ECA.
The National Bank controls the cost of external credits and foreign currency loans. Payment for services of ECA should not be accounted in the marginal cost. However, the ECA should belong to the list, which is given on the official website of the Organization for Economic Cooperation and Development (hereinafter - OECD). It is stipulated that this step will expand access of residents to foreign credit resources that are provided with the participation of ESA.
