Legislation overview (March 2016)

Legislation overview (March 2016)

Taxes

VAT

The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure of accumulation by agricultural companies of amounts of value added tax on the special accounts opened in banks and/or agencies that carry out treasury services of budget funds” of 24.02.2016, № 156 made amendments to mentioned Procedure.

Thus, agricultural enterprises are given the opportunity to accumulate funds of value added tax (hereinafter − VAT) to use them for production purposes. The mentioned above mechanism will be in effect until 1 January 2017.

It should be reminded that from 01.01.2016 the subjects to special VAT treatments get a part of positive VAT on a special account:

• under agricultural goods/services transactions (except for cereal and industrial crops transactions as well as animal products transactions) - 50%;
• under cereal and industrial crops transactions – 15%;
• under animal products transactions – 80%.

The adoption of the resolution caused by the necessity to bring the mentioned Procedure in accordance with the provisions of the Tax Code of Ukraine (hereinafter − TCU).

The State Fiscal Service of Ukraine in its letter “On the procedure of application of the norms of tax laws of value added tax when carrying out transactions of export of finished products by a newly established company” of 15.02.2016, № 3154/6/99-99-19-03-02-15 considered the issue on procedure concerning the application of the tax laws of VAT on export transactions of finished products by a newly established company.

Tax officers emphasize that starting from the tax reporting period (January 2016) the right of budget refund of a taxpayer does not depend on the term of registration by the VAT payer and volumes of taxable transactions.

In particular, restrictions on the right of taxpayers to receive budgetary compensation if they were registered as payers of this tax in less than 12 calendar months before the month, under results of which an application for budget refund to be submitted, or had the volume of taxable transactions for the last 12 calendar months less than the stated amount of budgetary compensation provided for by para.200.5 of TCU, was cancelled by para.45 of the Law of Ukraine “On Amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine on providing the balance of  budget revenues in 2016” of 24.12.2015 № 909-VIII.

The State Fiscal Service of Ukraine (hereinafter - SFSU) in its letter “On the procedure of application of special VAT regime” of 04.03.2016, № 7892/7/99-99-19-03-02-17 provided the clarification on the definition of compliance of agricultural products with certain commodity classification code according to UCC FEA.

The tax authorities point out: if it is necessary to determine the compliance of agricultural products own manufactured with commodity classification code according to UCC FEA for correct reflection of volumes of delivery of such goods in the tax declaration of VAT and its applications the taxpayer − subject of a special tax regime is able to receive the conclusion of Chamber of Commerce and Industry of Ukraine (its regional branches) or Research and Development Establishment of court inspections.

At the same time, if the taxpayer − subject to special tax regime carries out a transaction of export of agricultural products own manufactured outside the territory of Ukraine in the customs regime of exports, so, taking into consideration the norms of Art.69 of the Customs Code of Ukraine, such products are subject to customs clearance and are classified by customs authorities of the SFSU by determining the codes in accordance with the classification groups mentioned in UCC FEA. The decision of the customs authorities of the SFSU on classification of goods for customs purposes is mandatory. Conclusions of other authorities, institutions and organizations on commodity codes according to UCC FEA during customs clearance have exclusively informative and or referential nature.

The State Fiscal Service of Ukraine in its letter “On the possibility of payment of value added tax when importation of goods into the customs territory of Ukraine from account of the payer in the system of electronic VAT administration” of 25.02.2016 № 4178/6/99-99-19-03-02-15 considered that problematic issue. It is stated in the letter that the transfer (crediting) of money, paid to the electronic account of the payer, towards payment of VAT when the goods importation into the customs territory of Ukraine, is not provided by the tax law.

The State Fiscal Service of Ukraine in its letter “On the procedure for forming of the tax credit in case if the date of debiting of funds from the buyer’s account and date of crediting of funds to the seller’s account do not match” of 16.03.2016, № 5736/6/99-99-19-03-02-15 considers the issue of the procedure for forming of the tax credit if the date of debiting of funds from the buyer’s account and date of crediting of funds to the seller’s account do not match.

 In particular, the letter states: in the case of advance payment of goods/services if the date of debiting of funds from the buyer’s account and date of crediting of funds to the seller’s account do not match, the tax invoice should be prepared by the seller on the date of tax liabilities, i.e. on the date of crediting of funds to his/her bank account. VAT amounts specified in such a tax invoice (hereinafter – TI) could be included in the tax credit of the buyer:

• in case of timely registration of TI in URTI - in that tax (reporting) period when it is prepared, or in any next reporting period for 365 days from the date of such TI preparation;
• in case of untimely registration of TI in URTI - in that tax (reporting) period when it is registered in URTI, or in any next reporting period for 365 days from the date of such TI preparation.

Corporate Income Tax

The State Fiscal Service of Ukraine in its letter “On determination of differences under reserves (provisions) for compensation for the following expenses, formed before 01.01.2015” of 18.02.2016, № 3616/6/99-99-19-02-02-15 considered the issue to determine the differences under reserves (provision) for compensation for the following expenses, formed before January 1, 2015.

The controllers mentioned in the letter that according to para.139.1.2 of TCU financial result before taxation should be reduced by the amount of expenses that are compensated at the expense of reserves and provisions to compensate for the following (future) expenses formed in accordance with accounting rules before 01.01.2015 (excluding provision for employees vacations and provision for doubtful accounts), and by the amount of the adjustment (reduction) of reserves and provisions, on which the financial result is increased before taxation in accordance with accounting rules.

The tax authorities explain their position by the fact that now as before 01.01.2015, expenses for formation of provisions to compensate for the following (future) expenses are not included in the costs when determining of the subject to the income tax.

The State Fiscal Service of Ukraine on its official website posted a draft order of the Ministry of Finance “On Approval of Amendments to form of tax return on the company income tax”. The draft order is prepared in connection with the adoption of the Law of Ukraine “On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine to ensure the balance of budget revenues in 2016” of 24.12.2015 № 909 by the Verkhovna Rada of Ukraine. The Law made amendments to the TCU, in particular, on:

• removal of regulations on payment of monthly advance payments on company income tax at a rate of 1/12 of accrued tax amount for the previous reporting (tax) year;
• determination of advance payment of income tax in the amount of 2/9 of the income tax, which is subject to the payment before 31 December 2016;
• introduction of quarterly declaration of the income tax;
• prediction of new differences to adjust the financial result before taxation for the period of effect of the law on financial restructuring.

In addition, the adoption of this regulation will ensure the coordination with the Law of tax return of company income tax, approved by the Ministry of Finance of Ukraine of 20.10.2015 № 897.

PIT

The State Fiscal Service of Ukraine in its letter “On consideration of the appeal” of 09.03.2016 № 2458/Г/99-99-17-02-03-14explained some nuances of taxation of transactions of assignment of rights to real estate.

This scheme is often used by developers to minimize taxation of transactions on residential property sale. In particular, the letter states that property rights are recognized any rights related to property other than the property rights, including rights that are a part of the property right (right of ownership, property settlement, use) and other specific rights and right to claim.

Property right, which can be defined as “the right expectation” (which will be a claim for the property in future), is a part of the property as the object of civil rights. At the same time, Art.331 of CCU establishes a general rule, under which the ownership of the newly created real estate arises from the moment of state registration of rights to immovable property after completion of construction and its acceptance into operation.

A person is considered to be the owner of materials, equipment, etc., which were used during the construction (property development) before the completion of construction (property development).

Thus, in view of the fact that according to Art.328 of CCU acquisition of property rights − is a legal structure with which the law associates occurrence of subjective ownership of some facilities in the person, the purchase and sale of property rights – is occurrence of legal conditions necessary for acquiring of the claim transfer of ownership of the facility construction in the future.

At the same time the letter emphasizes: property rights for construction in progress are limited real right, but not the article of movable property.

Thereby tax officers suggested that investing in the construction with the future possibility of obtaining legal claim to the property was not in fact the acquisition of materials and equipment that were used during construction (property development). That is Art. 173 of TCU and 5% “preferential” rate of personal income tax do not apply to such a transaction.

The SFS considers the income, earned by the taxpayer as a result of the assignment of property rights, to other incomes (sub-para. 164.2.10 of TCU). This income is the subject to the personal income tax at a rate of 18% and the war tax - at a rate of 1.5% in 2016.

The State Fiscal Service of Ukraine in its letter “On taxation of accrued dividends in 2016” of 14.03.2016, № 5462/6/99-99-17-03-03-15 explained peculiarities of taxation of accrued dividends in 2016 for 2015.

Dividends incomes are definitively the subject to taxation by the tax agent when their accrual to the taxpayer at the rate specified by subparas. 167.5.1 and 167.5.2 of TCU. Therefore, the dividends accrued from 01.01.2016 for 2015 are the subject to taxation of personal income tax (hereinafter - PIT) at the rates valid in 2016, as follows:

• in amount of 5% - dividends incomes in shares and corporate rights accrued by residents - payers of corporate income tax;
• in amount of 18% - for dividends in shares and/or investment certificates paid by collective investment scheme;
• in amount of 18% - dividends incomes in shares and corporate rights accrued by residents – the unified tax payers.

Dividends accrued in favor of individuals (including non-residents) in shares or other corporate rights with the status of privileged or other status, which provides for the payment of fixed amount of dividends or an amount that is larger than the amount of payments, calculated on any other share (corporate law), issued by such a taxpayer, for tax purposes is equal to salary payment and are the subject to the PIT at the rate of 18%.

In addition, dividends are subject to the war tax at the rate of 1.5% for all types of dividends.

The State Fiscal Service of Ukraine in its letter “On taxation of incomes in the form of premiums accrued to employees and dismissed workers by the personal income tax and accrual of unified contribution for compulsory state social insurance” of 18.03.2016, № 4670/5/99-99-17-03-03-16 clarified the procedure for accrual of personal income tax (hereinafter - PIT) and the unified social contribution (hereinafter – USC) on amount of premiums paid to the employees of the company in 2016 by results of work in 2015.

The tax authorities emphasized: the amount of premiums accrued to the employees working in February 2016 based on the results of their work in 2015 should be included by the tax agent in the total monthly (annual) taxable income in February 2016 and to be the subject to the PIT at the rate of 18%. In case of accrual of premiums in current month for the previous periods, the amounts of such premiums should be included in the salary of the month, when such additional charges were made. At the same time, the USC should be accrued at the rate of 22%, i.e. the one that is in force on the day of actual income accrual

Other taxes and fees

The State Fiscal Service of Ukraine in its letter “On taxation of income received by an individual from the truck sale to the legal entity in 2015, and in such a case the necessity to pay the transport tax” of 02.03.2016, № 2267/С/99-99-17-03-03-14 explained that in case of the truck sale by the individual to the legal entity in 2015, such legal entity was obliged to perform functions of the tax agent when calculating (payment) of income under the mentioned transaction. In other words, the personal income tax (hereinafter - PIT) is required to be charged, to be withheld and to be paid (to be transferred) to the budget at the rate of 5% and the war tax at a rate of 1.5%.

As for the transport tax, the tax authorities note that according to para.267.2 of TCU, only cars are the subject to taxation. Thus, trucks are not the subject to the transport tax.

The Kyiv City Council at the plenary session made amendments to Kyivrada decision “On establishment of local taxes and fees in Kyiv city” of June 23, 2011, № 242/5629. The size of the tax of the normative evaluation of the land plot, where residential house is situated, is established at 0.03% rate. Accordingly, the amount of payment for land under the housing facilities was reduced 3.3 times.

In addition, it was proposed to exempt organizations of disabled people from the land tax during consideration of the draft decision. And that proposal also was supported by Kyivrada.

The State Fiscal Service of Ukraine directs attention of the excise tax payers for the sale of fuel to the fact that on 31 March 2016 the transitional period for the registration of excise invoices/ adjustment calculations in the Unified Register of excise invoices is ended.

From 1 April 2016 the registration of excise invoices/adjustment calculations should be carried out with taking into account all requirements established by TCU, including taxpayers’ liability for violation of registration procedure of excise invoices and adjustments calculations to such excise invoices in the Unified Register of excise invoices in accordance with Art.1202 of TCU.

The legislation does not provide for any additional actions for transition to registration a general regime of registration of excise invoices.

At the same time, the Ministry of Justice only 17.03.2016 registered the order of the Ministry of Finance “On approval of an application form for registration of the payer of the excise tax for the sale of fuel, excise invoice, adjustment calculation of excise invoice, an application (adjustment) for refuelling, the Procedure for filling of excise invoice, adjustments calculation of excise invoice, an application (adjustment) for refuelling” of 25.02.2016, № 218, which as of 01.04.2016 was never to be published.

Accounting and Reporting

The State Fiscal Service of Ukraine in its letter “On taxation of taxpayers who are registered on the territory of conducting of the antiterrorist operation” of 17.03.2016, № 2772/Х/99-99-19-01-03-14 notes that the norms of the Tax Code of Ukraine (hereinafter − TCU) and the Law of Ukraine “On temporary measures for the period of the anti-terrorist operation” of 02.09.2014, № 1669-VII do not contain provisions for exemption of the taxpayer from the obligation to restore the primary documents in cases of force majeure, in particular, occurring in the territory of ATO.

In case of loss, damage or early destruction of primary documents specified in paragraphs 44.1 and 44.3 of TCU, the taxpayer is obliged within five days from the date of such event notify in writing the supervisory authority at the place of registration in the order established by the TCU for submission of tax reporting, and the supervisory authority, which conducted customs clearance of the relevant customs declaration. The taxpayer is obliged to recover lost documents within 90 calendar days from the day following the date of receipt of notification to the supervisory authority.

Failure to document storage by the taxpayer concerning calculation and payment of taxes and revenues within prescribed terms by the Art.44 of TCU entails imposition of a fine established by the Art.121 of TCU.

The interregional central administration of the State Fiscal Service - Central Office for servicing of large taxpayers on its website informs: from 1 April 2016 tax invoices and/or adjustment calculations should be registered in URTI in the new form (approved by the Ministry of Finance of Ukraine “On approval of tax invoice form and the Procedure for filling a tax invoice” of 31.12.2015 № 1307, hereinafter - Procedure № 1307), regardless of the date of their preparation.

Therefore, if the TI to be drafted by the supplier before 01.04.2016, then on conditions of its registration after 01.04.2016 the new form is to be used. In particular, such a requirement is prescribed in para. 3 of the Procedure № 1307: “All tax invoices are the subject to registration in URTI in the form effective on the day of such registration”.

Control and Responsibility

The Cabinet of Ministers of Ukraine by its Resolution “On the norms of natural gas consumption by the population in case of absence of gas meters” of 23.03.2016, № 203 approved the norms of natural gas consumption by the population in case of absence of gas meters.

Norms of natural gas consumption by the population in case of absence of gas meters

In a period of absence of centralized hot-water supply of the population, norm of natural gas consumption per gas stove 7.1 cu. meters is established per person per month.

Period of absence of hot water supply (more than 6 hours per day in case of water supply around the clock or more than 30% of overall time of water supply according to daily schedule), which does not include interruption in its supply at night (from 12:00 a.m. to 6 a.m.), should be recorded in bilateral act, which is signed by the heating supply company and the operator of natural gas distribution system and is the basis to recalculate the payment for hot water supply and gas supply for the population. Over the mentioned period the population should not pay for the use of centralized hot water supply. The operator of the gas distribution system after the end of six months should send to the subscriber a reassessment for consumed gas in a period of absence of centralized hot water supply.

The State Fiscal Service of Ukraine in its letter “On provision of clarification on the possible appointment of a documentary unscheduled inspection if the taxpayer does not provide answers to query of supervisory authority” of 15.03.2016, № 5614/6/99-99-22-04-02-15 considered the issue on the possibility of appointment of a documentary unscheduled inspection on the basis that the taxpayer does not provide answers to query of the supervisory authority.

According to subparas.78.1.1 and 78.1.4 of TCU in case of receipt of tax information by the supervisory authority, the receipt indicates the violation of foreign exchange legislation and other not regulated legislation by the NCU, which monitoring of compliance is entrusted to supervisory authorities, or to identify the data unreliability contained in the tax returns submitted by the taxpayer, and in case of failure to provide answers and their documentary confirmations by the taxpayer within 10 working days of receipt of the relevant query of the supervisory authority, the documentary unscheduled inspection of such payer could be conducted.

In accordance with subparas.78.1.9 of TCU, the documentary unscheduled inspection can be conducted in the event of a complaining of the taxpayer and if he/she does not provide explanations and documentary confirmation to query of the supervisory authority, which states the information from complaint regarding:

• failure to provide a tax invoice (hereinafter - TI) by such a taxpayer to the seller, or about making mistakes by the seller of goods/services when  indication of the mandatory details of TI, provided by para. 201.1 of Art. 201 of the TCU, and/or violation registration deadlines in the Unified Register of tax invoices (hereinafter - URTI) by the seller/buyer and/or adjustment calculation;
• failure to provide the excise invoice to the buyer by the taxpayer, or about violation of the filling procedure and/or registration procedure of the excise invoice.

Transfer Pricing

The State Fiscal Service of Ukraine in its letter “On conduction of survey on transfer pricing” of 21.12.2015, № 46593/7/99-99-22-01-02-17 reminds: in accordance with Sec. 2 of sub-para.39.5.1.1 of the Tax Code of Ukraine (hereinafter - TCU) with the purpose to match the conditions of controlled transactions of “arm length” principle, officials of the State Fiscal Service (hereinafter – SFS), during the analysis of reports on controlled transactions and/or transfer pricing documentation submitted by the taxpayer under the paragraph 39.4 of TCU, are entitled to conduct the survey of authorized officers and/or employees of the taxpayer. The procedure of the survey is approved by the order of the Ministry of Finance dated 14.08.2015, № 706.

Labor and Salaries

The Ministry of Social Policy of Ukraine in its letter “Regarding the annual additional leaves for work in hazardous and difficult working conditions or the special nature of work” of 29.01.2016 № 26/13/116-16 reports that according to the para. 2 sec. 1 of Art.9 of the Law of Ukraine “On leave” of 15.11.1996 № 504/96-ВР (hereinafter − Law № 504), the work experience, which gives right to the basic an annual leave, is to be counted when the employee did not actually work, but job (position) preserved for him/her under the laws and salaries in full or in part (including paid time of the forced truancy, caused by unlawful dismissal or transfer to another position).

The letter notes that sec. 2 of Art. 9 of the Law № 504 clearly provides for time that gives the right to leave for work in hazardous and difficult working conditions and for the special nature of work. Due to the absence in relevant norm of warnings on mobilized workers, it could be concluded that the periods, in which workers dismissed because of military conscription when mobilization, are not counted into the work experience that gives right to an annual additional leave for work in hazardous and difficult working conditions or for special nature of work.

The Cabinet of Ministers of Ukraine by its draft Resolution “On increasing of payment for the labour of employees of institutions, establishments and organizations of definite public sectors and amendments to certain Resolutions of the CMU” scheduled the increase in tariff rates of public sector employees due to the increase in the minimum wage from 1 May 2016.

The Ministry of Social Policy of Ukraine by its Order “On establishment of the average cost of voucher for health resort treatment for payment of financial compensation instead of voucher of health resort treatment and the cost of individual health resort treatment” of 09.03.2016, № 226 established the average cost of voucher for health resort treatment for payment of financial compensation instead of voucher of health resort treatment and the cost of individual health resort treatment within the volume of budgetary funds allocated under the Law of Ukraine “On the State Budget of Ukraine for 2016” of 25.12.2015, № 928-VIII, in the amount of UAH 400.

The order comes into effect from the date of its official publication and is applied from 1 January 2016. It is being prepared for publication in the “Official Journal of Ukraine” № 25 on 05.04.2016.

Public Procurement

The Cabinet of Ministers of Ukraine adopted a Resolution “On Approval of Procedure for the functioning of electronic procurement system and conducting of authorization of electronic trading platform” of 24.02.2016 № 166, which approved a corresponding document.

The Procedure determines:

• requirements for the functioning of electronic procurement system, including requirements for the operator of electronic trading platform;
• conditions for connecting/disconnecting of the electronic trading platforms to/of “PROZORRO” procurement system and conditions of their authorization;
• procedure of access providing and amount of payment for access to the electronic auction module and database of the web portal of the Ministry of Economic Development;
• requirements for methods of identification used in electronic document exchange system.

Registration in the electronic procurement system should be carried out by one of the ways of identification/authorization with the help of:

• the use of digital signature according to the Law of Ukraine “On electronic digital signature” (high level of confidence (in case of using of intensive Public Key Certificate) or medium level of confidence (in case of using of public key certificate);
• the use of identification services, which are to be provided by the banking institutions according to the legislation (the average level of confidence);
• the identification through receiving of  bank’s payment by authorized electronic trading platform from the user. The operator of an authorized electronic trading platform provides an account for payment to the user. After the verification, the operator of authorized electronic trading platform can either return the payment to the user or enter it in the form payment for registration under the terms of the agreement between the user and the operator of an authorized electronic trading platform (the average level of confidence);
• the identification through mobile communication operator under the legislation (medium or low level of confidence);
• the identification through signing of the agreement between the user and the operator of an authorized electronic trading platform (the average level of confidence).

The user is responsible for the content of the information published in the electronic procurement system. Authorized electronic trading platform has the right to exercise control over information posted by the user, and to report the user who posted information with inappropriate content as well as the commission about such cases.

Mobilization and ATO

The President of Ukraine by his Decree “On transfer to the reserve of service personnel of compulsory military service during mobilization for the special period, called up in accordance with the Decree of the President of Ukraine dated 21 July 2014, № 607 and during the first stage of the partial mobilization in accordance with the Decree of the President of Ukraine dated 14 January 2015 № 15” of 25.03.2016, № 115/2016 instructed to conduct in March - April 2016 the transfer to the reserve of service personnel of compulsory military service during mobilization for the special period:

• called up in accordance with the Decree of the President of Ukraine “On partial mobilization” of 21.07.2014, № 607 and not retired from military service under the Decree of President of Ukraine “On exemption from military service of military personnel, which were called up for military service during the mobilization, for the special period under the Decree of the President of Ukraine dated 21 July 2014, № 607 “On partial mobilization” of 12.06.2015, № 328;
• called up during the first stage of the partial mobilization under the Decree of the President of Ukraine “On partial mobilization” of 14.01.2015, №15.

Financial Market

The National Bank of Ukraine published the Regulation of Board of the National Bank of Ukraine (hereinafter – NBU) “On regulation of situation in the monetary and foreign exchange markets of Ukraine” of 03.03.2016, № 140, which again continued the major currency restrictions increasing daily limits on the sale and withdrawal foreign currency.

The Regulation comes into force on March 5, 2016 and is valid to June 8, 2016.

The NBU increases the amount of cash withdrawal in foreign currency and precious metals from accounts of bank’s customers from 20 to 50 thousand hryvnias per day, in national currency - from 300 to 500 thousand hryvnias per day. Also, the maximum amount of cash foreign currency was increased from 3 to 6 thousand in hryvnias for the purpose of legalization of cash currency market.

At the same time, there were extended such requirements as mandatory sale of revenues in Ukraine in foreign currency in legal entities’ favor in the amount of 75%, payments for transactions with export and import of goods to 90 days, the ban early repayment of credits, loans in foreign currency under contracts with residents etc.

The National Bank of Ukraine in its letter “Clarification on issues of financial monitoring conducting” of 01.03.2016, № 25-0008/18557 reported that subjects to compulsory financial monitoring were foreign exchange transactions, which were carried out by paying cash in a bank in national/foreign currency followed the receipt of cash in foreign/national currency in accordance with para.4 of sec.1 of Art.15 of the Law of Ukraine “On prevention and counteraction to legalization (laundering) of proceeds from crime, terrorism financing and financing of spread of weapons of mass destruction” of 14.10.2014, № 1702-VII.

Summary of Court Rulings

The Supreme Administrative Court of Ukraine in its Resolution of 24.03.2016 with regard to case № 826/4871/13-а (К/800/66537/13) came to the following conclusion: refusal of the taxpayer to sign in referral for the audit and preparation by the officials of the act that certifies the fact of such a refusal is not a identical to the act, which should be prepared by the officials in case of refusal of the taxpayer to permit officers of the State Fiscal Service to the audit.

It is not enough of availability of an act of refusing to sign in a referral for the audit making a decision on the legality of the tax audit. It should be also considered the issue on availability of refusal to access controllers to the audit and its proper execution by the act.

According to the paragraph 81.2 of TCU, in case of refusal of the taxpayer and/or official of the taxpayer (his/her representatives or people who actually carry out payment transactions) to permit officers of a controlled body the act certifying the fact of refusal should be prepared before the audit.

In addition, the Supreme Administrative Court of Ukraine emphasized that TCU does not provide for the right of officials of the supervisory authority for scheduled documentary audit on site in the building of the State Tax Inspectorate in case of refusal of the taxpayer to permit officers to conduct the audit or refusal to sign a referral for the audit.

The Оther Things

The Cabinet of Ministers of Ukraine approved a deficit-free budget of the Pension Fund of Ukraine for 2016 with revenues and expenditures in the amount of UAH 257 207.6 million.

The budget, in particular, takes into account a planned increase of minimum pensions from 1 May and from 1 December. It should be reminded: from 01.05.2016 minimum pension will be UAH 1 130, and from 01.12.2016 - UAH 1 208.

The budget of the Pension Fund of Ukraine for 2016 takes into account the volume of appropriations from the State Budget of Ukraine to finance pension programs in total amount of UAH 144 888.6 million according to the Law of Ukraine “On the State Budget of Ukraine for 2016”. These appropriations, in particular, should compensate to the Pension fund expenses associated with a reduction of a rate of the unified social contribution in 2016, and cover the budget deficit of the Pension Fund of Ukraine.

The Supreme Economic Court of Ukraine (hereinafter - SECU) starts a test version of “InfoCentre” on the official website. This service operates in a mode of a dialogue with the staff of the SECU. This staff answers the questions online during working hours: Monday-Thursday: from 9:00 to 18:00, Friday: from 9:00 to 16:45; lunch hour: from 13:00 to 13:45.

It is provided that the following information could be available under a case number:

• the date of receipt of a court case to the court;
• participants in the process (other than individuals);
• the date, time and place of court consideration;
• results of consideration of cassational appeal.

Also, it is provided the information on payment details for the transfer of the court fee for cassational appeal and issuing of documents by the Supreme Economic Court of Ukraine, schedule of reception of citizens and on other organizational issues.

The service is not provided for advice on legal issues.

The Cabinet of Ministers of Ukraine by its Resolution “On Approval of the basic regulation of contributions of a part of profit for dividend payments of commercial companies, in authorized capital of which are the corporate rights of the state, based on the results of financial and economic activities in 2015” of 23.03.2016, № 228 established that economic companies, in authorized capital of which are the corporate rights of the state, and also commercial companies, 50% or more shares (fractions) of which belong to economic companies with 100% government stake should be directed to the dividends payment following the results of 2015 of 75% of net profit.