The Cabinet of Ministers of Ukraine (hereinafter − CMU) by its Resolution “On Amendments to the Procedure for issuance, extension and annulment of permission for the employment of foreigners and persons without citizenship” of 18.01.17, № 28 corrected the Procedure for issuance, extension and annulment of permission for the employment of foreigners and persons without citizenship approved by the Resolution of CMU dated 27.05.13, № 437.
The updated version, in particular, provides that an application for extension of the permit should be submitted not earlier than 40 calendar days before the expiration of the permit. However, as at present, it should be done not later than 20 days before the expiration of the permit.
The Cabinet of Ministers of Ukraine by its Resolution “On approval of the procedure for maintaining the Register of applications for return of amount of budgetary value added tax refund” of 25.01.17, № 26 approved a new procedure for maintaining the Register of applications for return of amount of budgetary value added tax (hereinafter − VAT) refund under the implementation of updated sub-para. 200.7.1 of the Tax Code of Ukraine (hereinafter − TCU).
The mentioned above procedure comes into force on April 1, 2017. By this time the budgetary compensation is to be carried out under the old rules in force before January 1, 2017. This applies to all submitted applications that are included in the Unified Register under para.52 of sub-sec.2 of sec. XX of TCU.
The new procedure for maintaining the Register of applications for the return of budgetary compensation provides that data entry in the Register of VAT refund should be carried out by officials of the SFSU and Treasury in the automatic mode in compliance with the laws on electronic signatures and electronic documents.
Data from the Register will be published on the official website of the Ministry of Finance of Ukraine except for details of the current account of the VAT payer for the transfer of budgetary refund.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Regulation on customs declarations” of 11.01.17, № 27 determined that it to be required to submit additional customs declaration and pay the customs duties in the months of moving goods across the customs border of Ukraine under periodic customs declaration.
It also provides the requirement for completing the sheet of adjustment in the case of making changes in the customs declaration associated with additional payment or repayment of customs duties, including in connection with the cancellation the decision of the customs authority and related to the adjustment of cost of goods that exported outside the customs territory of Ukraine.
The State Fiscal Service of Ukraine in its letter “On the procedure of preparation and registration in URTI of the adjustment calculation to the tax invoice, which was drafted for the final consumer (VAT defaulter) by mistake” of 23.12.16, № 27795/6/99-99-15-03-02-15 explained that tax invoice (hereinafter – TI) wrongly prepared and registered in URTI under the transaction of the supply of goods/services to the final consumer (VAT defaulter), which did not actually take place, could be annulled.
For this purpose, at the date of the error detection the supplier executes adjustment calculation. Since the TI, issued for the final consumer, is not provided to the recipient, the adjustment calculation to it should be registered in URTI by the supplier.
Representatives of SFSU also reminded that VAT payers can use adjustment calculation to correct errors when the preparation of TI, including those that are not connected with compensation of cost of goods/services.
The State Fiscal Service of Ukraine by its letter “On VAT taxation of compensation for damaged property” of 30.12.16, № 28710/6/99-99-15-03-02-15 reported that VAT payers, who receive money as compensation for damaged or destroyed property, should accrue tax liabilities. Controllers consider that the amount of such revenues (excluding penal sanctions and penalties) is the compensation of the property value and require including it in the tax base. However, the tax authorities do not allow accruing the compensating tax liabilities on the value of property destroyed during its cancellation.
Therefore, representatives of fiscal authorities equate compensation for damages to the supply transaction, and the destroyed property, for which it was received the compensation, is considered to be used in business activity.
The State Fiscal Service of Ukraine in its letter “On the procedure of VAT taxation of advertising services” of 23.12.16, № 27744/6/99-99-15-03-02-15 reported that the supply of advertising services for non-resident customer should not be taxed with VAT. The substantiation is simple: the place of supply of such services is situated outside Ukraine (sub-para. “б” of para. 186.3 of TCU).
In addition, the tax officers do not require accruing VAT due to the distribution of goods of premium fund and promotional and informational materials. At least they do not talk about such subject to taxation as the supply of goods (sub-para. “a” of para. 185.1 of TCU), but only perceive them in the acquisition and subsequent use of part of cost price of services. Consequently, service providers have the right to form a tax credit under acquired inventory. However, due to their use for the implementation of tax-free supplies of advertising services – it should be accrued compensatory VAT under sub-para. “a” of para. 198.5 of TCU.
The State Fiscal Service of Ukraine in its letter “On issues of application of tax legislation in the write-off of fuel and lubricating materials” of 20.01.17, № 1186/6/99-99-15-02-02-15 reported that the cost of purchasing fuel and lubricants materials should be taken into account when determining the financial result before tax in accordance with the accounting rules in the event of confirmation duly completed by the primary.
However, TCU does not provide for adjustments to the financial result before tax on excess amount of fuel costs over linear norm established by the order of the Ministry of Transport of Ukraine of 10.02.98, № 43.
The State Fiscal Service of Ukraine in its letter “On the adjusting of the financial result before tax when determining of the subject to the company income tax on differences under construction contracts” of 18.01.17, № 969/6/99-99-15-02-02-15 informed that a taxpayer, who performs construction under the contract concluded before 01.01.15, could reduce the financial result when determining the subject to taxation in the amount of incomes counted twice. This refers to the amount of income taken into account in tax accounting when determining the subject to the income tax under such a contract before 01.01.15 and as a part of income in accounting after 01.01.15. This right appeared due to para.42 of sub-sec.4 of sec. XX of TCU introduced from 01.01.17.
However, annex PI to the Tax invoice on the company income tax approved by the Ministry of Finance of Ukraine of 20.10.15, № 897 does not provide lines to reflect such differences. Therefore, according to para.46.4 of TCU the payer could submit amendments in any forms together with that tax declaration (by notifying about such amendments in the relevant box of declaration).
The Ministry of Justice of Ukraine by its Order “On Approval of the Procedure of information interaction between the Unified State Register of Legal Entities and individuals − entrepreneurs and community groups and the automated enforcement system” of 24.01.17, № 173/5 determined the mechanism of information transferring on the opening and completion of enforcement proceedings of automated enforcement system in the Unified state register of legal entities and individuals − entrepreneurs and community groups (hereinafter − USR).
The information included in the automated enforcement system, during the working day should be automatically transferred to the USR on the day of their introduction.
Prior to the introduction of such interaction, the information transfer should be carried out no later than 10:00 on the next working day after their introduction in the Unified State Register of enforcement proceedings. Then it is necessary to apply the digital signature using the enhanced certificate key.
Currently, the following information on enforcement proceedings is transferred in the USR:
- number in the automated enforcement system (Unified State Register of enforcement proceedings);
- date of opening/completion of enforcement proceedings, cancellation of Resolution on opening/closing of enforcement, recovery of enforcement proceedings;
- replacement of the debtor in the enforcement proceedings;
- State Enforcement Service authority, private executor who entered information about the enforcement proceedings in the automated enforcement system.
The State Service of Ukraine on labor issues in its letter “On “labor” penal sanctions” of 04.01.17, № 54/4.1/4.1-ДП-17 noted that sec.2 of Art.265 of the Labor Code of Ukraine (hereinafter − the Labor Code) established penalties for violation of terms of wages, namely:
- violation of established terms of payment of wages to the employees provided by labor legislation, more than a month − a fine of three minimum wage at the time of detection of violations (currently − UAH 9 600);
- violation of minimum state guarantees to labor remuneration (for example, payment of wages at a rate less than the minimum for a fully worked-time, unpaid additional payments in case of night work), the penalty is 10 minimum wages at the time of detection of violations for each employee for which committed infringement (currently - UAH 32 000).
If the employee does not appear to receive wages (in case of payment via cash) and he/she was notified of the appropriate amount in writing, the employer must deposit it. In this case, he/she performs his/her responsibility to ensure the timely payment of wages.
It should be reminded: Art. 115 of the Labor Code provides for that wages for employees should be paid regularly on working days in the terms established by the industry and regional agreements or regulation of the employer, but not less than twice a month through the period of time not exceeding 16 calendar days and not later than seven days after the period for which the payment is carried out. And wages for all time of annual leave - not later than three days before it started.
