The President of Ukraine signed the Law of Ukraine “On the Constitutional Court of Ukraine” of 13.07.17 No. 2136-VIII, according to which the Constitutional Court of Ukraine (hereinafter − CCU) would work under the new rules. The main purpose of the new CCU work is real protection of the rights and freedoms of human and citizen, and the rule of law.
The innovations introduced by the regulatory act include the fact that appeals to the CCU will have three forms now: constitutional appeal, constitutional petition and constitutional complaint.
Anyone, who believes that the law of Ukraine (its separate provisions) used in the final judicial decision in his/her case is contrary to the Constitution of Ukraine, can take advantage of the latter one.
Please, pay attention to the change of the structure of the CCU. Now Grand Chamber, the Senate and two six boards are in its composition.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the use of the cash register not registered in the SFS authorities on the condition of daily printing of the X-report and reflecting its data in the company’s cashbook” of 18.07.17 No. 1258/6/99-99-14-05-01-15/ІПК clarifies that company may not use cash register while trading its own production products. In this case, it is obliged to make payments to the cash the company with the registration of income and cash payment vouchers and issue the corresponding receipts signed and stamped in accordance with the established procedure. Such an opportunity is provided in para.1 of Art. 9 of the Law of Ukraine “On the Application of Cash Registers of Settlement Transactions in the Field of Trade, Catering and Services” of 06.07.95 No. 265/95-ВР.
If an entity does not want to take advantage of this privilege, the entity should use cash registers registered, sealed in the established order and transferred to the fiscal mode of work with the printing and issuance of relevant settlement documents confirming the execution of settlement transactions.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the Eligibility of Entrepreneurial Activities by a Public Organization Included in the Register of Non-Profit Institutions and Organizations” of 20.07.17 No. 1286/6/99-99-15-02-02-15/ІПК explained that a public association can carry out activities with the status of a legal entity or without such a status. This is clearly provided for in para. 5 of Art. 1 of the Law of Ukraine “On Public Associations” of 22.03.12 No. 4572-VI.
Thus, a public association with the status of a legal entity is a non-profit company which main purpose is not profit making.
Thus, according to the representatives of the fiscal department, the Register of non-profit institutions and organizations can include only public associations which meet the requirements of para. 133.4.1 of TCU, only with the status of a legal entity.
In addition, tax officers come to the conclusion: in case if a business association with the status of a legal entity carries out commercial activities, such association must re-register in the Unified State Register with its further exception from the Register of non-profit institutions and organizations.
After all, if a public association carries out commercial activities and receives profits, then this activity is classified as entrepreneurship (Article 42 of the Commercial Code of Ukraine) and does not correspond to the essence of the concept of non-profit activities of non-profit institutions.
The State Fiscal Service of Ukraine in its letter “On the taxation by the personal income, the war tax of the amounts of indexation of wages, and reflection in tax calculation in the form of No. 1DF” of 10.05.17 No. 7955/5/99-99-13-01-01-16 indicates: the amount of wage indexation, in particular for previous periods, should be reflected in the tax calculation in the form No. 1DF in the quarter in which such accrual (payment) is made.
In this case, it is not necessary to distribute the indexation for the months for which it is additionally accounted for. The tax agent is obliged to withhold the tax on personal income and the war tax from the amount of income in the form of wage indexation in the tax period in which such accrual (payment) occurs, the representatives of the fiscal agency point out.
Similarly, for the calculation of the unified contribution of the indexation amounts additionally accounted for previous periods in connection with the detection of errors, should be included in the wages of the month in which such contributions were made. This is evidenced by sub-para.3 of para. 3 of sec. IV of the Guidelines on the procedure for accrual and payment of the Unified contribution to the compulsory state social insurance, approved by the order of the Ministry of Finance of Ukraine of 20.04.15, No. 449.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On Taxation of the Income of a Non-Resident – Individual” of 14.07.17 No. 1197/6/99-99-01-02-02-15/ІПК reminds that in the general case, the incomes of non-residents – individuals obtained from source of origin in Ukraine are the subject to taxation. However, if an international treaty, the consent to which the Verkhovna Rada has made binding, establishes other rules, then the rules of the international agreement are applied.
In addition, it is noted that in the most general case, according to paragraph 2 of Art. 15 of Model Convention of the OECD, the payment, wage and other similar remuneration received by a resident of another country in connection with employment in Ukraine are not taxed in Ukraine, if three conditions are met simultaneously:
a) the recipient is in Ukraine for a period or periods not exceeding a total of 183 days during any 12-month period commencing or ending in the relevant tax year;
b) the remuneration is paid by the employer or on behalf of the employer who is not a resident of Ukraine;
c) the expenses for the payment of remuneration are not borne by the permanent representation or the permanent base which the employer has in Ukraine.
Non-resident income from the provision of professional services (scientific, literary, artistic, art, educational or teaching activity, the activities of doctors, lawyers, engineers, architects, dentists and accountants, etc.) are not taxed in Ukraine, provided that such a non-resident does not have a permanent basis in Ukraine, which is regularly used by them to carry out this activity (para. 1 of Art.14 of the OECD Convention).
The State Fiscal Service of Ukraine in the Individual Tax Advice “On the recognition of transactions for the free transfer of goods to a non-resident − related person as controlled, methods of setting conditions for a controlled transaction, indicators of profitability” of 17.07.17 No. 1233/6/99-99-15-02-02-15/ІПК answered the question about the possibility of assigning a transaction for the free transfer of goods to a related non-resident to a controlled one.
The logic of reasoning by the representatives of the fiscal department is as follows:
- the condition for the recognition of a transaction as controlled is the possibility of its impact on the object of taxation of income tax (para. 39.2.1 of the Tax Code of Ukraine, hereinafter − TCU);
- the free transfer of goods in tax accounting is equated to the sale (para. 14.1.202 of TCU);
- the value of free-of-charge goods should be reflected in the accounting expense, accordingly, it affects the accounting result, and consequently, the object of taxation of income.
The conclusion is based on these three theses: if the recipient of free goods is a “related” non-resident, then the economic transaction falls under the definition of controlled.
The State Fiscal Service of Ukraine in the Individual Tax Advice “On Certain Issues of Taxation of Credit Unions” of 30.06.17 No. 930/6/99-99-15-02-02-15/ІПК reported that as of 01.07.17credit unions are taxpayers of the income tax in the general conditions and are obliged to accrue and pay the income tax in accordance with the procedure established by para.III of “Corporate income tax” of TCU.
Credit unions have the right to distribute the income that remains at their disposal by the results of the fiscal year between members of the credit union. Consequently, credit unions can not be included in the new Register of non-profit institutions and organizations. After all, according to para. 133.4.1 of TCU, one of the mandatory requirements for non-profit organizations is the prohibition in the constituent documents of the distribution of the proceeds (profits) or their parts among the founders (participants) or members of such organization.
Consequently, credit unions, which are not included in the new Register of non-profit institutions and organizations, should pay the income tax as new taxpayers of the tax on the basis of a tax return for the annual reporting period beginning on July 1, 2017 and ending December 31, 2017.
The Ministry of Finance of Ukraine by its Order “On Approval the Form of the Book of Income and Expenses Accounting for the Determination of the Amount of the Total Annual Taxable Income and the Procedure for Accounting for Income and Expenses to Determine the Amount of the Total Annual Taxable Income” of 23.06.17 No. 591 approved a new form of accounting of incomes and expenses for determining the amount of total annual taxable income. This is about a book of accounting for ordinary non-business individuals. It differs from its predecessor, in particular, by having separate graphs to reflect the costs associated with obtaining
a tax discount and the cost of transactions with investment assets.
Accordingly, a new Procedure for keeping records of income and expenses appeared to determine the amount of total annual taxable income.
The State Property Fund of Ukraine by its order “On Amending Certain Legislative Acts of the State Property Fund of Ukraine” of 08.06.17 No. 924 defined the conditions for considering the question of depriving of the appraiser of qualification certificate (qualification document). Now consideration of such a question is possible not only on the request of the interested party.
It is sufficient that the reviewers of the State Property Fund of Ukraine (hereinafter − SPFU) (its regional departments), based on the results of the review of the report on the assessment of the property, that the fact that it does not meet the requirements of normative legal acts on valuation of property is sufficiently inadequate and unprofessional.
Also, consideration of the issue of the cancellation of a qualification certificate is possible in the course of conducting by the SPFU of the unified database of assessment reports for the purposes of taxation and the calculation and payment of other mandatory payments, which are made in accordance with the legislation.
The State Statistics Service of Ukraine by its order “On approval of the form of the state statistical observation No. 7-trade (annual) “Report on the existence of a trading network” of 21.07.17 No. 188 approved a new form of statistical observation No. 7-trading (annual) “Report on the existence of a trading network”.
It should be recalled that the form No. 7-trade is submitted by legal entities that carry out retail activities. It is required to report under the new form already starting from the report for 2017.
