The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated March 25, 2015 № 302” of 26.10.16, № 745 established that from 01.11.2016 Ukrainian citizens paper passports in the form of books and plastic passports wouldn’t be issued without contactless electronic media. Now, there will be drawn up only Ukrainian citizens’ passports with contactless electronic media (including instead of lost or stolen as well as exchange). In other words, there is no any other alternative to plastic chipped passports.
It should be reminded that it will be recorded on the chip variable information on the place of residence, birth of children, marriage and its annulment, change in the name, the registration number of registration card of the taxpayer from the State Register of individuals-taxpayers, or the notification of refusal to accept it (and if the individuals refused to accept the registration numbers because of their religious beliefs and officially reported to the relevant controlling authority – to enter the word “refusal”). Also the biometric data, human parameters (digitized facial image, digitized signature, digitized fingerprints (on the consent of the person) as well as digital signature will be entered there.
The lines name for entering information about the person and the details in the visual checking zone of the passport should be indicated in Ukrainian language and in English.
Until the full maintenance of the territorial subdivisions of the State Migration Service with the resources necessary for processing and issuing plastic chipped passports of citizen of Ukraine, the passports should be issued in the form of a book.
Previously issued passports (paper or plastic without chip) remain valid (until expiry of their term).
The Cabinet of Ministers of Ukraine by its Resolution “On decreasing of the financial burden on consumers in payment for district heating services by creating conditions for obtaining payment by instalments for the service of centralized heating” of 19.10.16, № 744 gave the opportunity of instalment payment of debt for heating for customers who had no a “heating” subsidies.
In the case of consumer appeal to district heating companies with the application for payment by instalments (its form established by appropriate government regulation), the heating supplier, starting from the month of its submission, on a monthly basis counts only 50% service fee during the heating season.
The remaining 50% of the service fees are accounted for the customer during non-heating season in equal monthly instalments from May to September inclusive. The supplier should calculate and distribute corresponding amounts in equal instalments during non-heating season.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to Certain resolutions of the Cabinet of Ministers of Ukraine and the Annulment of Certain acts of the Cabinet of Ministers of Ukraine and the Council of Ministers of the USSR” of 05.10.16, № 741 amended the government documents related to the certification of workplaces and lists of hazardous and heavy works. Mainly these are “cosmetic” amendments (e.g., instead of the “Ministry of Labor” – “Ministry of Social Policy”, instead of “owner or authorized body” – “employer”).
Among the adjustments to the content it is noteworthy that the structure of the evaluation commission (for certification of workplaces on working conditions) must include the authorized representative of the elected body of primary trade union organization, and in case of the absence of a trade union organization - body authorized by the employees.
The State Fiscal Service of Ukraine in its letter “On the reflection in the tax reporting received by the payer of income tax to 01.01.2015 of the reimbursable financial assistance, if the payer does not return it” of 06.10.16, № 21757/6/99-99-15-02-02-15 informed about the possibility of financial result adjustment before taxation on the amounts of reimbursable financial assistance from non-payers of income tax received before 01.01.15, if the payer didn’t return it before the expiration of the limitation period.
Please note that according to the tax profitable rules were in effect until 01.01.15, the recipient should include the amount of such financial assistance in tax revenues, and in the case of return he/she was entitled to tax expenditures. However, today, if he/she does not return it, and accounts payable recognized hopeless, he/she should reflect it in incomes in the accounting. Controllers also note: if the payer does not return reimbursable financial assistance and the account payable is withdrawn, then the formation of the difference, which reduces the financial result of the payer, is not provided. The payer is the subject to double taxation under this approach.
In addition, the tax authorities noted that the payer of income tax may reduce the financial result before tax for the amount of the returned financial assistance after 01.01.15, which was received before 01.01.15 from the persons, who are non-payers of the income tax, and included in income composition in determining of the subject to the income tax before this date (para.18 of sub-sec.4 of sec. XX of the Tax Code of Ukraine, hereinafter – TCU).
The State Fiscal Service of Ukraine in its letter “On the accounting of amounts of negative value of the subject to taxation of previous tax periods of the legal successor in case of liquidation” of 13.10.16, № 22278/6/99-99-15-02-02-15 explained the fate of a negative value for the income tax in case of liquidation of the company by joining.
The financial result before taxation of the taxpayer - successor should not be reduced on the amount of negative values that was taken into account on the date of approval of the transfer act to the payer, which is terminated in the process of reorganization by joining, conversion, merger.
The tax authorities prove this position by the lack of transitional provisions in the TCU, which would allow to the reorganized company to take into account the tax losses of the joined taxpayer.
The State Fiscal Service of Ukraine in its letter “On the taxation of dividends reinvestment aimed at increasing the authorized joint capital” of 06.10.16, № 21690/6/99-99-15-02-02-15 considered the situation when the accrued dividends to non-resident to be sent to reinvestment. Also it is noted that incomes of a non-resident originating from Ukraine in the form of dividends are the subject to taxation in accordance with the provisions of para. 141.4 of Article of the TCU regardless of the method of use of such income, including such as reinvestment. In other words, it is necessary to withhold the tax on repatriation.
The tax authorities reminded that the issuer of corporate rights making decision on the payment of dividends to its shareholders (owners), should accrue the advance payment of the income tax into the budget (sub-para. 57.11.2 of TCU).
The State Fiscal Service of Ukraine in its letter “On the classification of business transactions of the payer of the excise tax to fuel shipment transactions for the purpose of own consumption and preparation of the excise invoice” of 11.10.16, № 22116/6/99-99-12-02-02-15 reported: the payer of the fuel excise tax should prepare an excise invoice (hereinafter – EI) with the type of reason “3 - fuel shipped for the purpose of own consumption” on volumes of fuel received from other payers of the excise tax, from which the amount of the exercise tax has been already paid, confirmed by the excise invoices, registered in Unified register, and used exclusively for their own needs, and used exclusively for their own needs, such as fueling of own machines through fuelling stations in the absence of settlement transactions. Also, such EI should be prepared by the fuel manufacturers for the volumes of fuel transferred within a single company for its own consumption.
The State Fiscal Service of Ukraine by its letter “On the registration of tax invoices” of 28.10.16, № 23044/6/99-08-02-01-15 definitely declared its intention to establish the duration of the trading day for the registration of tax invoices and adjustment calculations in the URTI: from 8 a.m. to 7 p.m. (instead of 12 a.m. to 23 p.m.).
In spite of the explosion of indignation that was caused by the draft amendments to the Procedure of the Unified Register of tax invoices on the reduction of the trading day, the controllers insist on the innovation. They rejected the proposal of the Committee on the Public Council at the Ministry of Economic Development of tax policy not to make amendments, having explained that according to the statistics 90% of the total number of tax invoices and/or adjustment calculations to be registered in the URTI from 8 a.m. to 19 p.m.
The Ministry of Finance of Ukraine by its Order “On the approval of standard forms of accounting and writing off of fixed assets by the entities of public sector and the procedure of their compilation” of 13.09.16, № 818 approved new standard forms of accounting and writing off of fixed assets, as well as their preparation for public sector entities. The last should be applied by the budget funds administrators, the State Treasury of Ukraine and funds of obligatory state social insurance and pension insurance. The typical forms are established according to the following list:
- The Act of putting into operation of fixed assets;
- The Act of acceptance and transfer of fixed assets;
- The Act of internal displacement of fixed assets;
- The Act of transfer for repair, reconstruction and modernization of fixed assets;
- The Act of acceptance of repaired, reconstructed and modernized fixed assets;
- The Act of writing off of fixed assets (partial liquidation);
- The Act of writing off of the group of fixed assets;
- The Act of writing off of means of transport;
- The Act of writing off of the seized documents from the library fund;
- Inventory card of accounting of the fixed assets;
- Inventory card of the group accounting of fixed assets;
- Inventory card of accounting of animals and perennial plants;
- Calculation of depreciation of fixed assets (except other non-current tangible assets);
- Calculation of depreciation of other non-current tangible assets;
- The act of revaluation of fixed assets.
It should be noted that standard forms of accounting and write-off of fixed assets can be applied by the legal entities regardless of their organizational-legal forms and forms of ownership, as well as representations of non-residents.
The Ministry of Finance of Ukraine by its Order “On Approval of Amendments to the Procedure for the return of funds erroneously or excessively credited to the state and local budgets” of 19.09.16, № 827 changed the rules for the funds return erroneously or excessively credited to the state and local budgets. In particular, it is prohibited to carry out such a representation in any form.
In addition, there were approved various forms for representation for a refund erroneously or excessively credited to the budget of dues, fees and other budget revenues and for representation for a refund erroneously or excessively credited to the budget of taxes, duties, payments, the control over collection of which is entrusted to the authorities of the State Fiscal Service Ukraine.
Board of Treasury can return the application and submission or decision of the court without performing, if they are submitted by an unauthorized person, or the requirements for their registration are infringed.
The Ministry of Finance of Ukraine by its Order “On Amendments to the Order of the Ministry of Finance of Ukraine of October 2, 2015 № 859” of 15.09.16, № 821 redrafted the Declaration of property and incomes, and the Guidelines on its completion. The amendments will come into effect on December 31, 2016. Therefore, it is necessary to declare the incomes for 2016 according to updated form.
The tendency to reduce the volume of the declaration did not pass away this year. Therefore, as a result we have a “slim” declaration, which has only two applications as opposed to the four of its predecessor.
