Ministry of Finance of Ukraine by Order No. 709 of December 21, 2023:
- updated the edition of the Country-by-country report of the international group of companies,
- approved the amendments to the procedure for filling the Country-by-country report of the international group of companies.
Subsequently, this Order was additionally adjusted by order of the Ministry of Finance No. 12 of January 12, 2024.
The amendments were made in order to bring the form and Order into line with provisions of Law No. 2970, which, in particular:
- defines the concepts of “multilateral CbC agreement”, “QCAA agreement”, “member of international group of companies”;
- gives new version of the definition of the concepts of "parent company of international group of companies", "international group of companies", "authorized participant";
- determines that for the purposes of the Code, unless it expressly provides otherwise, international agreements containing provisions for the exchange of information for tax purposes, include the Convention on Mutual Administrative Assistance in Tax Matters, the International Agreement of Ukraine on the Avoidance of Double Taxation and other international agreements on the exchange of information for tax purposes, consent to be bound by the Verkhovna Rada of Ukraine, as well as agreements concluded on their basis;
- clarifies the circumstances and conditions of presentation of the Country-by-Country Report of the international group of companies (in particular, cases of failure to comply with the QCAA agreement and indicators of the minimum amount of consolidated income of the international group of companies, which includes the taxpayer);
- clarifies the list of information that should be presented in the Country-by-Country Report of the international group of companies concerning jurisdiction (state, territory) in which the participant of the relevant international group of companies or in which the international group of companies operates is registered, and for each participant of such international group of companies;
- determines he grounds for filing of the revised Country-by-Country Report by the taxpayer (in particular, in case of detection by the controlling body of errors in the submitted Country-by-Country Report of the international group of companies or receipt of notification of such errors from the competent authority of another jurisdiction on the basis of the QCAA agreement);
- clarifies the reporting periods and terms of the first submission of the Country-by-Country Report of the international group of companies.
Thus, the Report is submitted if the consolidated income of the IGC, which includes the taxpayer, for the financial year preceding the reporting year, is calculated in accordance with the accounting standards applied by the parent company of the IGC (in the absence of information - in accordance with international accounting standards), equals or exceeds the corresponding indicator of the minimum aggregate consolidated income, defined by paragraph 39.4.102 of the Tax Code, and in the presence of one of the circumstances specified in paragraph 39.4.10 of the Tax Code:
a) the taxpayer is the parent company of the IGC;
b) the parent company of the IGC authorizes the taxpayer – a resident of Ukraine to submit a report to the supervisory authority;
c) in accordance with the requirements of the legislation of the jurisdiction of the tax residence of the parent company, the submission of a report from such a IGC is not required;
d) between Ukraine and the relevant foreign jurisdiction of the tax residence of the parent company of the IGC is a valid international agreement containing provisions for the exchange of information for tax purposes, but the relevant QCAA agreement has not entered into force as of the date of the end of the financial year, for which according to paragraph 39.4.11 of the Tax Code a report on such IGC must be submitted;
e) between Ukraine and the relevant foreign jurisdiction of the tax residence of the parent company of the IGC there is a valid international agreement containing provisions for the exchange of information for tax purposes, but there are facts of systematic failure to comply with the relevant QCAA agreement.
For the purposes of this paragraph, the systematic failure to comply with the QCAA agreement on a foreign jurisdiction means that the foreign jurisdiction of the tax residence of the relevant IGC member has valid QCAA agreement with Ukraine, but has suspended the automatic exchange of reports for reasons other than those that comply with the terms of such an agreement, or otherwise, it does not automatically provide to Ukraine reports at its disposal about the IGCs, which have members in Ukraine.
The Ministry of Finance of Ukraine by Order No. 617 of November 6, 2023 made changes to some methodical recommendations on accounting.
The document provides guidance on the application of accounting registers approved by Order of the Ministry of Finance No. 356 of December 29, 2000, and Methodical recommendations on accounting of intangible assets, approved by Order of the Ministry of Finance No. 1327 of November 16, 2009, in accordance with the national provisions (standards) of accounting.
Order No. 617:
1) provides new editions to Report 4.3 of analytical accounting of intangible assets of Journal 4. Significant changes to this form of accounting are not made, only change in the name of one column;
2) excludes the provision: if the residual value of the intangible assets is zero, its overestimated residual value is determined by adding the fair value of the object to its original (overvalued) value without changing the amount of accumulated depreciation of the object;
3) clarifies that the amount of accrued depreciation is reflected by an increase in the amount of accumulated depreciation of intangible assets and costs of the enterprise, except when the amount of these costs is included in the cost of another asset and the carrying amount of such asset;
4) provides the opportunity for the enterprises to review the liquidation value of intangible assets at the end of the reporting year;
5) specifies that objects of intangible assets, for which, according to the results of the inventory, acts of entry into economic turnover and a determined value have been drawn up, are included in the intangible assets of the enterprise by debiting account 12 "Intangible assets" and crediting subaccount 746 "Other income".
The National Bank of Ukraine, by Resolution No. 12 of January 30, 2024, updated the procedure for authorizing providers of financial payment services and their activities on the payment market.
The changes include:
- connection of providers of financial payment services/limited payment services to the NBU e-mail system for official communication with the regulator;
- exclusion of the function of conducting internal financial monitoring from operational functions.
For this purpose, changes were made to:
- Regulations on the procedure for authorizing the activities of providers of financial payment services and limited payment services, approved by Resolution of the NBU Board No. 217 of October 7, 2022 (as amended);
- Regulations on the authorization of financial service providers and the conditions for their performance of financial services activities, approved by Resolution of the NBU Board No. 199 of December 29, 2023.
The Cabinet of Ministers of Ukraine made changes to the Regulation on the Unified State Web Portal of Electronic Services. This will make it possible to start work on a service that will allow legal entities to receive Diia.Signature remotely. Previously, this service was available only to individuals.
Thanks to the resolution, such a service will be available not only to individuals, but also to legal entities in the future. They will be able to generate Diia.Signature in the Diia application regardless of the presence of martial law in Ukraine. This will greatly simplify business, help speed up processes and make the actions of entrepreneurs more transparent.
The Ministry of Finance of Ukraine, by Order No. 717 of December 26, 2023, amended the Procedure for the return (transfer) of funds erroneously or excessively credited to the state and local budgets, approved by Order No. 787 of the Ministry of Finance of September 3, 2013. By the way, later the norms of Order No. 717 were corrected by Order of the Ministry of Finance No. 16 of January 15, 2024.
Item 5 of ch. I of the Order clarifying that erroneously and/or excessively credited to the budget taxes, fees, penalties and payments, the control of which is entrusted to the authorities of the State Tax Service, customs and other payments, penalties, the control of the implementation of which is entrusted to the authorities of the State Customs Service are not subject to refund to payers in respect of whom, in accordance with the procedure established by the Law of Ukraine "On Sanctions", a decision has been made to apply special economic and other restrictive measures (sanctions), during the period of application of such sanctions.
