The Ministry of Finance of Ukraine by its Order “On Recognition of Expired, Order of the Ministry of Finance of Ukraine dated July 01, 1997 No. 141” of 18.06.2019 No. 247 recognized as invalid, the Accounting Guidelines for VAT, approved by the Order of 01.07 .1997, No. 141.
The specified order will come into force from the day of its publication (approximately 09.08.2019).
At the same time, for the accounting of value added tax (hereinafter – VAT), the requirements of the Guidelines on the application of the Plan of Accounts of Assets, Capital, Liabilities and Business Transactions of Enterprises and Organizations approved by the Order of the Ministry of Finance of 30.11.1999, No. 291 remain relevant.
The Ministry of Finance of Ukraine by its Order “On Amendments to the Order of the Ministry of Finance of Ukraine dated October 02, 2015 No. 859” of 25.04.2019 No. 177 approved the form of the tax declaration on property status and income and updated the instruction on its completion.
In addition to the tax return form itself, there are three annexes to it:
- calculation of personal income tax liabilities and the war tax of income derived from investment property transactions (Annex Ф1);
- calculation of personal income tax liability and the war tax of income received by self-employed (Annex Ф2);
- calculation of the amount of tax reduced by the personal income tax liabilities in connection with the use of the right to a tax exemption (Annex Ф3).
The need to update the property tax return and income has arisen due to changes in tax legislation.
In particular:
1. To expand the list of expenses allowed for inclusion in the tax rebate. Namely, they supplemented paras. 166.3.9 of the Tax Code of Ukraine (hereinafter – TCU), which provides for the right to include the amount of funds in the form of rent in the tax exemption under the lease of a dwelling (apartment, house), made in accordance with the requirements of the current legislation, actually paid by the taxpayer who has status of internally displaced person.
2. As the list of expenditures for the application of the right to a tax exemption has been increased, the procedure for calculating the amount of tax reduced by the tax liabilities on personal income tax (hereinafter – PIT), in connection with the use of the right to a tax exemption, has been separated in a separate annex Ф3.
3. Amounts of remunerations and other payments accrued (paid) to the taxpayer in accordance with the civil contracts by individuals – payers of the unified tax of group 4, who operate exclusively within the farm, their recipient is obliged to include in the income in the annual tax declarations for the reporting year and pay taxes and fees independently. A separate line 10.2 was provided in the form of a tax return for the implementation of the stated norm to reflect the stated income.
4. The amount of tax levied by the tax agent on the income for the lease of land plots to individuals (sublease, emphyteusis), such a tax agent pays to the appropriate budget at the location of such objects of lease (sublease, emphyteusis). Separate lines are provided for the implementation of the specified norm in the form of tax return:
“10.4.1” – for reflection of the stated incomes;
“17” – to reflect the tax (military levy) on such income.
The State Fiscal Service of Ukraine in its Individual Tax Advice “Regarding Reflection of the Company in the Tax Calculation under f. 1 ДФ payments in favor of the individual – unified tax payer who provided services to a seconded employee” of 29.07.2019, No. 3545/6/99-99-13-02-03-15/ІПК reported: if the legal entity did not pay, but only compensated the employee for the cost of a business trip, it is not necessary to reflect in f. No. 1 ДФ payment of the last funds for services provided during the business trip of individual-entrepreneur – the unified tax payer (hereinafter – individual entrepreneur).
But if the calculation (payment) of incomes was made by the company directly to the entrepreneur, it acts as a tax agent in the part of reflecting such accrual in the form No. 1 ДФ on the basis of income “157”.
Representatives of the fiscal office stressed that if the payment of the cost of services for hired workers on a business trip came to the account of an individual-entrepreneur of group 2 from a legal entity that is not the unified tax payer, the conditions of stay on the simplified system will be violated. The individual entrepreneur will lose the right to be on the unified tax.
The State Fiscal Service of Ukraine, through the Large Taxpayers Office, considered the requirements for tax royalty taxation provided for in the TCU.
Thus, in accordance with para. 140.5 of the TCU, the financial result of the tax (reporting) period is increased:
- for the amount of royalty costs (para. 140.5.6 of the TCU) (excluding transactions recognized as controlled under Art. 39 of the TCU) for the benefit of a non-resident (including a non-resident registered in the states (territories) referred to in para. 39.2 .1.2 of TCU) exceeding the amount of royalties increased by 4% of net income from the sale of products (goods, works, services) according to the financial statements for the year preceding the reporting period (excluding entities operating in the field television and radio broadcasting in accordance with the Law of Ukraine “On television and broadcasting”), and for banks exceeding 4% of operating income (net of VAT) for the year preceding the reporting period (restrictions are not applied by the taxpayer if the amount of such costs is confirmed by the taxpayer at the prices determined on the arm’s length principle, in accordance with the procedure established by Art. 39 of the TCU, but without submission of the report);
- for the full cost of royalties in full (paras. 140.5.7 of the TCU), if the royalties are charged in favor of:
- a non-resident who is not the beneficial (actual) recipient (owner) of the royalty, except when the beneficiary (actual owner) has granted the right to receive the royalty to other persons;
- non-resident in respect of objects for which the intellectual property rights first arose in a resident of Ukraine. The requirements of this subparagraph should not apply to cases where the subject of cinematography of royalty for the use of intellectual property rights (films, literary works, musical works, works of art, photographic works, phonograms, video grams), except when a resident of Ukraine is a subject of a cinematographer who has property copyrights and related rights as a result of the creation (production) of the aforementioned works, if he/she subsequently transmitted or made alienation of the property copyrights or related works to non-resident and provides charging royalties for the use of this object;
- a non-resident who is not taxable on royalties in the country of which he/she is a resident.
The State Tax Service of Ukraine urged taxpayers to be careful when filing income tax returns. If you have any questions, you can contact your tax coordinator for assistance.
The Ministry of Social Policy of Ukraine by its Order “On Approval of Reporting Form No. 1- ПА “Information on the Number of Employed Citizens by Business Entities who Provide Employment Mediation Services” and the Order of its Submission” of 03.06.2019 No. 851 approved the Report Form No.1-ПА “Information on the number of employed citizens by economic entities providing employment mediation services”, as well as the procedure for its submission.
Business entities will report on the form specified, who:
- provide employment mediation services in Ukraine,
- hire employees to continue their work in Ukraine with other employers,
- provide employment mediation services abroad.
If the entity has branches, representative offices, branches and other separate units, such entity will file the specified report No. 1- ПА on the results of the activities of all its units.
Form No.1-ПА should be submitted on a quarterly basis to the city, district and city district employment centers no later than the 15th of the month after the reporting quarter (in electronic or paper form).
The State Labor Service of Ukraine told what an employee should do if he/she was not paid the wages.
The right to receive timely remuneration for work is protected by law (Art. 43 of the Constitution). An employee has the right to pay for his/her work on the basis of an employment contract (Art. 21 of the Law “On Labor Remuneration”).
Labor remuneration of the employee of the enterprise is made in the first place; timeliness and amount of payment of wages to employees cannot be made contingent on making other payments and their priority (Art. 97 of the Labor Code, Articles 15 and 24 of the Law on Labor Remuneration).
Delay in payment of wages even for one or more days is a violation of payment terms in accordance with Art. 115 of Labor Code.
In the case of dismissal of a worker, the management should make a full payment with the employee not later than the next day after the release of the payment request. If the employer during the dismissal of the employee late made a full calculation with him/her, then in accordance with Art. 117 of Labor Code, the company must pay the employee his/her average earnings.
According to Art. 41 of the Administrative Code defines administrative responsibility for violation of the established terms of payment of wages, payment of its full amount, which entails the imposition of a fine on officials of enterprises, institutions and organizations regardless of the form of ownership and citizens-subjects of entrepreneurial activity from 30 to 100 non-taxable minimum incomes.
According to Art. 175 of the Criminal Code of Ukraine for unjustified non-payment of salaries to citizens for more than one month, committed intentionally by the head of a company, institution or organization irrespective of the form of ownership, should be punished by a fine of from 500 to 1 000 non-taxable minimum incomes or corrective labor for a term up to two years, or imprisonment for a term up to two years, with deprivation of the right to occupy certain positions or engage in certain activities for a term of up to three years.
If the non-payment is made as a result of misuse of funds intended for payment of wages, it is provided a fine of between 1 000 and 1 500 non-taxable minimum incomes or imprisonment for a term up to three years or imprisonment for a term of up to five years, with deprivation of the right to occupy certain positions or engage in certain activities for up to three years.
Control over the observance of the legislation on remuneration at enterprises is carried out by: the Ministry of Labor and its bodies; bodies of the State tax inspection; trade unions and other bodies and organizations that represent the interests of employees, as well as the prosecutor’s office for the duration of the delay until the day of actual settlement (“forced absence”).
