The Cabinet of Ministers of Ukraine has adopted the next amendments to Resolution No. 1165. This is the result of a joint working group of experts, the Ministry of Finance, the State tax Service and the Tax Committee of the VRU. The changes are aimed at reducing the percentage of suspended invoices and simplifying administrative procedures for payers, in particular they:
- provide automatic registration of TI/AC in the event of removal of the taxpayer from the list of risky subjects for fulfillment of certain conditions provided for in the Suspension Procedure;
- provide automatic registration of suspended TI/AC in the event of a decision to take into account the Taxpayer's Table, provided that certain conditions are met;
- define the mechanism for administrative appeal of decisions on including a tax payer in the list of risky and non-consideration of the Taxpayer's Table;
- determine that if the taxpayer is included in the list of risky subjects, then the effect of the decision regarding the inclusion of the Taxpayer's Table is automatically suspended, but not canceled, which relieves the taxpayer of the need to return to the issue of re-inclusion of the table after removing it from the list of risky subjects;
- in the decision to include the taxpayer in the list of risky, add information regarding the date of inclusion in the list of risky counterparties, transactions with which are defined as risky.
The State Tax Service of Ukraine has published new handbooks of benefits as of May 30, 2023, namely:
- Handbook No. 116/1 of tax benefits, which are losses of budget revenues;
- Handbook No. 116/2 of other tax benefits.
In the mentioned handbooks, a list of benefits with their codes and terms of validity is given, in particular, from the corporate income tax; value added tax; land fee; real estate tax; excise tax, local taxes and fees.
Accounting of the amounts of tax benefits received by business entities is carried out by the controlling authorities on the basis of the information available in the tax declarations submitted by such business entities.
The National Bank of Ukraine by Resolution No. 72 of May 30, 2023 ‘On approval of the Regulation on information exchange between authorized institutions regarding non-resident accounts in UAH and amendments to the Regulation on currency supervision’ approved the new Regulation on information exchanged between authorized institutions regarding non-resident hryvnia accounts.
The National Bank creates conditions for the improvement by authorized institutions of foreign currency supervision over transactions of non-residents in UAH. Thus, in accordance with the requirements of the Law ‘On Currency and Foreign Exchange Transactions’ (hereinafter – the Law on Currency), the procedure for exchanging information between authorized institutions about UAH accounts of their non-resident clients or users is introduced. For this purpose, the NBU has developed an automated information system ‘Register of non-resident accounts (hereinafter – the Register) on the Hyperledger fabric blockchain platform.
The functioning of the Register is necessary to minimize risks and improve the conditions for currency supervision by authorized institutions of transactions in UAH carried out with the participation of non-residents through these institutions.
In order to fulfill the requirements of the Currency Law, the National Bank has:
- regulated the procedure for information exchange between authorized institutions regarding accounts in UAH of non-residents opened in these institutions using the Register;
- obliged the authorized institutions to provide the Register with information on all bank or payment accounts opened in these institutions, the owners of which are non-residents;
- provided an opportunity for the authorized institution to obtain free of charge information from the Register about the ownership of the account in UAH to a non-resident owner while performing the functions of a currency supervision agent.
Information about non-resident accounts will be stored in the Register in encrypted form using a hash function without the possibility of reading information about the client's account.
From October 1, 2023, the Register will function in full, including the possibility for authorized institutions to obtain information about the ownership of UAH accounts to bank or payment accounts owned by non-residents.
The introduction of the Register will contribute to the expansion of the toolkit for the implementation by authorized institutions of currency supervision over currency transactions in the UAH.
The Ministry of Finance of Ukraine by Order No. 177 of April 7, 2023 approved the Amendments to the Procedure for exchange of electronic documents with supervisory authorities. The document became effective on June 1, 2023.
The changes define that the notice of acquisition of the status of the subject of electronic document flow is an informational message that is generated by the software of the supervisory authority as part of the first receipt and certifies the fact that the taxpayer has acquired the status of the subject of electronic document flow after the supervisory authority has received the first of any electronic document.
Legal entities, self-employed persons, tax agents, supervisory authorities, state authorities, local self-government bodies acquire the status of SEDF from the date recorded in the first receipt, and in the presence of a second receipt on acceptance of the first electronic document.
Acquisition of SEDF status is carried out by sending the first electronic document to the supervisory authority. Confirmation of the acquisition of the SEDF status is the author's receipt of the notification of the acquisition of the SEDF status as part of the first receipt.
On the day of termination of electronic document flow, the supervisory authority notifies the author of the termination of electronic document flow (with an indication of the reason) by sending an automatically generated notice of termination of electronic document flow to the Electronic Cabinet or to the email address entered in the author's credentials, indicating the date of termination.
Also, the concept of the second receipt is defined in a new way. This is an electronic message, which is generated in the format approved by the procedure established by law, by the software of the controlling body (addressee) based on the results of electronic identification, processing, and verification of the mandatory details of the electronic document and certifies the fact and time of acceptance (non-acceptance) or registration of such an electronic document.
In addition, the Order specified that subjects of electronic document circulation independently determine the mode of access to electronic documents containing confidential information and establish a system (methods) of protection for them. In information, electronic communication, information and communication systems that provide for the exchange of electronic documents containing state electronic information resources or information with limited access, the level of protection of this information must be provided, which, according to the law, must correspond to the degree of restriction of access to it.
The Verkhovna Rada of Ukraine has adopted as a basis the European integration project of Law ‘On Amendments to Certain Laws of Ukraine on Ensuring the Rights of Persons with Disabilities to Work’ under register No. 5344-д, revised by the Committee on Social Policy and Protection of Veterans' Rights for consideration in the repeated first reading.
The purpose of this bill is to ensure at an appropriate level, taking into account the experience of EU countries, that persons with disabilities realize their right to work, which is guaranteed by the Constitution of Ukraine, the UN Convention on the Rights of Persons with Disabilities, and the 1983 ILO Convention on Vocational Rehabilitation and Employment (Disabled Persons) No. 159.
The bill proposes to create favorable conditions for the employment of persons with disabilities, in particular by implementing approaches approved in other countries to the development of stimulating mechanisms for employers, expanding opportunities for persons with disabilities.
At the same time, the obligation to employ persons with disabilities is provided not only by private businesses, but also by state authorities, communal institutions and organizations.
Also, the employer will be offered alternative support mechanisms for people with disabilities (optional):
- employ persons with disabilities in specially equipped workplaces for them. A component of the employment process is the mandatory provision (if necessary) of social services: social support at the workplace, personal assistant, sign language translation, etc.;
- pay a targeted contribution to support their employment to a special fund of the state budget (the funds of which will be spent in a targeted manner);
The provisions of the bill also provide for the expansion of the category of enterprises that can benefit from state financial support, for example, protected employment enterprises, which will not aim to make a profit, but to provide work for people with severe forms of functional limitations.
The committee will finalize the bill together with a wide range of stakeholders for its further consideration by the Verkhovna Rada of Ukraine in the second reading.
The Verkhovna Rada of Ukraine has adopted as a basis bill No. 8401 on amendments to the Tax Code of Ukraine and other laws of Ukraine regarding the peculiarities of taxation during the period of martial law.
The bill proposes to amend the Tax Code, Laws of Ukraine ‘On Collection and Accounting of Single Contribution to Mandatory State Social Insurance’ and ‘On Use of Cash Registers in the Field of Trade, Public Catering and Services’ with regard to the termination no later than July 1, 2023 of the following:
- stopping of documentary checks;
- application of a simplified taxation system in the form of a single tax of 2%;
- opportunities for natural persons – entrepreneurs single taxpayers of groups I and II not to pay the single tax;
- stopping the passage of tax reporting deadlines, conducting audits, obtaining tax information by supervisory authorities, conducting administrative appeal procedures, providing individual tax consultations, etc.;
- norms regarding the non-application of liability (penal sanctions) for violation of the requirements of tax legislation and other legislation, the control over the implementation of which is entrusted to the supervisory authorities.
The bill also provides for:
- cancellation/non-imposition of fines and penalties assessed in accordance with the tax notification-decision, provided that the taxpayer pays the amount of the tax liability (main payment) calculated based on the results of documentary checks that were resumed or started from July 1, 2023 and completed by the day of termination or cancellation of the state of war or state of emergency on the territory of Ukraine, within 30 calendar days from the day following the date of receipt of the tax notification-decision. At the same time, the amount of the tax liability paid is not subject to appeal;
- regulation of income tax taxation of ‘transitional’ transactions that were initiated during the period of payment of the single tax in order to eliminate double taxation.
Adoption of the specified draft law is one of the conditions of the program with the IMF.
