The State Fiscal Service of Ukraine in its Individual Tax Advice “On Taxation of the Company Income Tax of Sales Transactions or Other Alienation of Non-Residents of Corporate Rights, Expressed in Other Than Securities, Form” of 19.04.18, No. 1721/6/99-99-15-02-02-15/ІПК reported that a resident, when paying in favour of a non-resident, the proceeded from the sale of transactions or other alienation of corporate rights, should keep the tax at a rate of 15%, unless otherwise established by the rules of the international agreement.
The income of a non-resident is to be calculated according to the accounting rules.
Representatives of the fiscal department emphasized that the list of documents on the basis of which foreign investors are being returned to foreign investors, as well as income, profits, and other funds received by a foreign investor from investment activity in Ukraine, is defined in para.2 of Chap. 3 of Section II of the Regulation on the procedure and terms of trade in foreign currency, approved by the decision of the NBU Board dated August 10, 2005, No. 281.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On Payment by a Resident of Tax from a Non-Resident Income” of 20.04.18, No. 1752/6/99-99-15-02-02-15/ІПК recalled that the repatriation tax to be paid to the budget during the payment of income to a non-resident.
The date of accrual of income to a non-resident in accounting does not affect the payment of repatriation tax. This tax must be transferred to the budget no later than the date of payment of income to a foreign counterparty.
At the same time, non-accruing, non-withholding and/or non-payment (non-transfer) of the tax before or during the payment of income in favour of another payer - is threatened with a fine of 25% of the amount of tax to be paid to the budget.
For repeated violation of such violation within 1095 days - the fine will amount to 50% of the tax amount.
Violation of this requirement for the third time or more is threatened with a sanction of 75% of the taxable amount, which is subject to accrual and/or payment to the budget.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the list of payments, on account of payment of monetary obligations or tax debt, a taxpayer may claim a budget reimbursement from VAT” of 24.04.18, No. 1839/6/99-99-12-02-01-15/ІПК reported that the taxpayer can pay his/her obligations or pay tax debts at the expense of the budget reimbursement of VAT (paragraph “в” para. 87.1 of the Tax Code of Ukraine). However, such an opportunity is foreseen only in respect of taxes that fall in full to the state budget. If, in accordance with the norms of the Budget Code of Ukraine, all state payments are distributed between the state and local budgets, the use of budget reimbursement of VAT in this case is not allowed.
The State Fiscal Service of Ukraine in its Individual Tax Advice “On the Application of Tax Differences in the Case of Transfer to an International Non-Governmental Organization of Membership Fees” of 18.04.18, No. 1691/ІПК/28-10-01-03-11 reported that the membership fees transferred to the international a non-governmental organization as a cash deposit for membership in the specified organization, is not irreversible financial assistance. So, it is not required to adjust the financial result before tax in accordance with para.140.5.10 of TCU.
It should be noted that this clarification relates to a particular payer and the situation with the tax adjustments in the payment of membership fees to non-profit organization is rather delicate. Representatives of the fiscal department also had other explanations on this subject with opposing conclusions. Therefore, it should not be blindly followed this consultation, but analyze each particular situation separately or apply to the tax authorities for explanations.
The Ministry of Justice of Ukraine by its Order “On Approval of the Amendment to the Procedure for the Notarial Acts of Notaries of Ukraine” of 24.04.18, No. 1247/5 made amendments to the rules of the performance of notarial acts. In particular, now the notary will not require a report on an expert monetary valuation of a land plot alienated by a legal entity if its execution is not required by law.
It should be recalled that conducting an expert monetary valuation of land plots must be done in the following cases:
- alienation and insurance of land plots belonging to the state or communal property (except for the alienation of land with an area of more than 50 hectares for the placement of open sports and recreational facilities);
- determination of the investment contribution to the implementation of the investment project for land improvement;
- determination of the value of land plots belonging to state or communal ownership, if they are introduced into the authorized capital of an economic partnership;
- determination of the value of land in the course of reorganization, bankruptcy or liquidation of an economic partnership (enterprise) with a state share or part of communal property that owns a land plot;
- allocation or determination of the share of the state or a territorial community in the ownership of the land plots;
- reflecting the value of land and the right to use land plots in accounting in accordance with the legislation of Ukraine;
- determination of losses to owners or land users in cases established by law or contract;
- court decision.
The Ministry of Social Policy of Ukraine in its letter “On Providing Social Extra Vacation on Children” of 26.03.18, No. 480/0/101-18/284 clarified the procedure for providing additional leave for children. Consequently, if a woman, after giving birth to a second child, did not complete her job duties and did not work a single working day, and issued an annual leave, she does not have the right to additional social leave for children.
It should be recalled that according to Art. 19 of the Law of Ukraine “On Leaves” of 15.11.96, No.504/96-ВР, a woman who works and has two or more children under the age of 15 years, provides an additional paid vacation of 10 calendar days each year, excluding holidays and non-working days.
Therefore, in order to receive such leave, according to the social department, it is not enough for a woman to have two children under the age of 15, she still has to work (to fulfil her job responsibilities).
The Ministry of Social Policy of Ukraine in its letter “On the liability for the payment of an advance in the amount less than specified in Art. 115 Labor Code” of 16.03.18, No. 118/0/22-18 recalled that according to Art. 115 of the Labor Code of Ukraine (hereinafter - Labor Code), the amount of salary for the first half of the month is determined by a collective agreement or normative act of the employer, agreed with the trade union, but can not be less than the payment for the actual time spent calculating the tariff rate (salary of the employee). In the case of payment of employees of wages not in full, other payments provided for by labor legislation (as well as violations of established terms of payment for more than one month), the employer may be fined UAH 11 169 (three times the minimum wage established by law at the time of detection violation, para. 3 of Part 2 of Art.265 of the Labor Code).
In addition, for the payment of wages not in full in accordance with Article 41 of the Code of Ukraine on Administrative Offenses, an official of an enterprise or an individual-entrepreneur who is an employer may be brought to an administrative liability in the form of a fine in the amount of 30 to 100 non-taxable minimum incomes of citizens (from UAH 510 to 1700).
The Civil Service of Ukraine on labor issues in its letter “On violation of the indexation procedure” of 24.01.18, No. 503/4/4.3-дп-18 informed: if during the inspection visit there would be established violations of the procedure for wage indexation, the labor inspector would have grounds to apply to the employer a fine provided for in para.4 of Part 2 of Art.265 of the Labor Code of Ukraine, for failure to comply with the minimum state guarantees for remuneration of labor. The size of the fine is 10 times the minimum wage (today - UAH 37 230) for each worker for whom the violation was committed.
In accordance with para.27 of the Procedure for the implementation of state control over the observance of labor legislation, approved by the resolution of the Cabinet of Ministers of Ukraine of 26.04.17, No. 295 (hereinafter - Procedure No.195), the inspector of labor issues an order and/or takes measures regarding the prosecution of the guilty person in committing violations of an official, based on the results of an inspection visit or a non-existent inspection. In case of fulfilment of the order in the time period established in it, measures to attract the object of visit and its officials are not taken to responsibility. At the same time, measures to attract employers and their officials to liability for:
• the use of employment off the books employees,
• untimely and not full payment of salary,
• non-observance of the minimum guarantees in the payment of wages is made simultaneously with the introduction of the order, regardless of the fact of elimination of the revealed violations (para. 29 of the Procedure No.295).
For non-compliance with the labor inspector’s order, a penalty is imposed on officials from 50 to 100 non-taxable minimum incomes (UAH 850-1700, Art.1886 of the Code of Ukraine on Administrative Offenses of Ukraine).
