DeVisu | Legislation Overview (June 2015)

Taxes

VAT

The Cabinet of Ministers of Ukraine by its Order of 27.05.15, № 544-р “On volumes of medicinal products and medical devices, import of which on the customs territory of Ukraine and delivery within the customs territory Ukraine are exempted from the value added tax for the period of the antiterrorist operation and / or imposition of martial law” approved the volumes of medicinal products and medical devices intended to be used by healthcare facilities and participants of the ATO to provide medical aid to individuals, who suffered injury, contusion or other damage to health in the period of ATO and / or imposition of martial law.

Delivery and import transactions of approved volumes of medicinal products and medical devices are temporarily exempted from the VAT in accordance to para.32of subpara.2 of sec. XX of the TCU. The VAT exemption, in particular, applies to:

medicinal products such as “Nalbuphine hydro chloride”; “Amoxicillin hydrate three”; “Dexpanthenol”; “Methyluracilum, chloramphenicol”; “Ciprofloxacin”;
medical devices: mechanical and chemical means to stop bleeding; car first aid kits; medical plasters; medical gloves; Mechanical tools for dressing and footwear cutting; brilliant green.

It should be noted, the preferential norm of para.32 of subpara.2 of sec. XX of the TCU entered into force as far back as 2014 but not fully worked because appropriate volumes of medicinal products and medical devices were not approved. The state financial control also noticed it in the category 101.14.10 ЗИР (Public information and reference resource).

The State Fiscal Service of Ukraine in subcategory 101.30 ЗИР explained that the adjusted calculations to tax invoices (hereinafter - TI) should take into account when the filing of report on the amounts of tax benefits to VAT payers.

The VAT amounts, not paid to the budget because tax benefits, should be calculated based on tax treatment (para.4 of sec. I of the Procedure of amount determination of taxation and duties not paid to the budget by business entity due to obtaining of tax exemptions for transactions carried out within the customs territory Ukraine, approved by the State Tax Administration of Ukraine dated 29.03.11, № 167).

The state financial control clarified that this calculation depends on:

transaction status: transaction exempted from VAT is subject to zero rate;
tax regime.

Adjustments of obligations should be recorded in line 8 of VAT Declaration, and credit – in line 16. Since figures of line 8 are to be included in the total amount of tax liabilities, and line 16 – in the total amount of credit, the figures of adjustment calculation to TI should be taken into account when the filing of report on the amounts of tax benefits.

The State Fiscal Service of Ukraine said on its website about implementation of electronic service of exchange of adjustment calculations to TI between contractors. This service is implemented by the state financial control for VAT payers in order to assist them in the exchange of adjustment calculations to Tax Invoices (hereinafter – TI). This exchange is provided for by para.16 of the Resolution of the CMU of 16.10.14, № 569 “Some issues of electronic administration of value added tax”.

The adjustment calculations to TI drafted by the supplier should be registered in the Unified Register by the buyer, if the compensation amount of goods value (services) is decreased. In this case, the supplier sends the calculation to the buyer. The supplier is entitled to decrease the tax liability under the adjustments calculation only after its registration in the Single Register by the recipient.

The format of electronic adjustments calculation should meet the requirements of the Format (standard) of electronic document of business entities reporting approved by the Ministry of Revenue of Ukraine of 29.11.13, № 729.

Also it should be signed by certified means of electronic digital signature, which are currently used for signing and encrypting of electronic documents submitted to the SFSU.

The State Fiscal Service of Ukraine stated that individuals–entrepreneurs, who used fixed assets in their business activities, should not include into the expenses and VAT credit amounts paid due to their acquisition (construction) and withholding (see the SFS of Ukraine Letter “On accounting of fixed assets by individuals–entrepreneurs” of 06.01.15, № 167/6/99-99-17-02-15).

They explain it by the fact that individuals–entrepreneurs do not keep accounting and, accordingly, cannot account for fixed assets on the balance sheet, cannot determine their original cost value and residual value, as well as share of their use exactly in business activity.

In addition, controllers have reminded that the definition “individual” and “individual–entrepreneur” has a different tax status in the legislative conception.

However the individual, not the employer, acts as subject of the property right. The current legislation does not provide for reasons to consider the property, which is privately owned by individual, as capital assets of the business entity, if such citizen registered as an entrepreneur.

The State Fiscal Service of Ukraine explained that in 2015 the errors made in VAT returns of processing company (with mark 0140) before 01.01.15 (inclusive of limitation period), such companies should correct using adjusting calculations (hereinafter - AC), which form approved by the MFU of 23.09.14, № 966, in force as of 31.01.15 (see SFSU letter “On value Added Tax dated 12.06.15, № 20955/7/99-99-19-03-02-17).

It is about errors related to adjustments of tax liabilities and credit, in particular, about the inclusion of tax invoices issued in 2014 in credit.

Taxmen reminded: the VAT special treatment for processing (beef and dairy) factories, as defined by para. 1 of subsection 2 of sec. XX of the Tax Code of Ukraine was suspended since 01.01.15. Therefore in 2015 processing companies should record all transactions in general VAT- declaration (with mark 0110) and pay the VAT to the budget by the general rules. Accordingly declaration in the form 0140 and AC to it became invalid.

Processing companies when correcting mistakes of previous years should fill in AC with the following details:

the mark in line 0140 should be made in the heading of AC. The AC is submitted as a separate document;
if the VAT amount, which was the subject to transfer on special account of the processing company to 01.01.15, is increased when the error correction, it should be recorded in line 25.1 of AC and the penalty is charged in the amount equal to 3% in line 26. The tax and the penalty are to be paid to the budget and reflected in the integrated map of a taxpayer as separate charges on the date of AC submission;
if this VAT amount is decreased (or increased / negative value decreased) when the error correction, such amount is taken in account in line 29 of sec. IV of the declaration for the reporting period when the AC is given. Also, it is fixed in column 11 of Table 1 of Annex Д2 to this declaration.

The Income Tax

The State Fiscal Service of Ukraine in its letter “On statement presentation and payment of advance installments in case of non-receipt of income or loss for the results of I quarter 2015” of 02.06.15, № 19441/7/99-99-19-02-02-17 reported that the income tax payer, who paid advances monthly on the results of 2014 and the I quarter 2015 did not receive profit or made loss, was not entitled to submit a declaration of income tax for the I quarter 2015. The payer should continue to pay accrued in declaration for 2014 monthly advances in March 2015 - May 2016. This conclusion related to the fact that amended para. 57.1 of the TCU since 01.01.15 did not contain such an exception.

The State Fiscal Service of Ukraine in its letter “On clarification provision on the income tax” of 09.06.15, № 11999/6/99-99-19-01-01-15 reminded that the expenses should be determined in tax accounting according to accounting rules. In other words, it is not necessary to confirm their connection with economic activity. So, for example, expenditures for bottled drinking water for general use should be included in tax expenses according to accounting rules.

The same applies to the purchase expenses for fuels and lubricants (hereinafter - FL). Today it is not needed to confirm connection of traffic route according to the waybill with business activity when depreciation of FL according to the expenses norms. According to general rules, depreciation of fuel and lubricants is conducted based on data for mileage and norms of fuel and lubricants usage for vehicles, approved by the Ministry of Transport of Ukraine of 10.02.98, № 43.

However, since the current legislation does not provide the standard form of waybill of a passenger car, the company could use primary document form suitable for accounting approved by the order on corporate accounting policy subject to the availability of all characteristic features of the primary document.

In case of over-fueling over the linear rate, their depreciation should be conducted according to accounting rules on basis of the relevant document approved by the company order.

Thus, the adjustment of financial result before taxation in the amount of over-fueling over the linear rate is not provided for by the paragraph III of the TCU.

The State Fiscal Service of Ukraine in its letter “On clarification provision on the income tax” of 09.06.15, № 11999/6/99-99-19-01-01-15 clarified the issue, in what reporting period the buyer should recognize the VAT credit if:

a seller transferred the goods to a carrier and issued a tax invoice (hereinafter - TI) on the date of transfer;
a buyer received the goods in the next month.

If the date of goods shipment by the supplier and the date of their receipt by the buyer are not the same (as provided by the contract) the buyer should focus on moment of transfer of ownership under the contract.

The property acquirer obtains the ownership right under contract at the moment of transfer of property (unless otherwise provided by contract or law) (Art. 334 of the Civil Code of Ukraine).

The transfer of property is considered to be its delivery to acquirer or carrier.

Thus, the buyer has the right to recognize the tax credit only after the TI drafting by the supplier, particularly at the moment of shipment of goods and TI registration in URTI (unified register of tax invoices), but not before obtaining of ownership rights for the goods.

Other taxes and fees

The Cabinet of Ministers of Ukraine by its Resolution of 27.05.15, № 331 “On amendments to the Procedure of payment of duty on obligatory state pension insurance with certain types of business transactions” (comes into force from the day of its official publication) to implement the Law of Ukraine “On amendments to the Tax Code of Ukraine and Certain Legislative acts of Ukraine on the tax reform” of 28.12.14, № 71-VIII made amendments to the procedure for payment of pension contribution.

It is clarified that banks do not withhold the pension contribution from legal entities when foreign currency purchasing. The contribution should be paid only by individuals who purchase foreign currency in cash except as they buy it for credit repayment.

At the same time, the appropriate form of report on pension contribution withholding in foreign currency purchasing that banks submit to the PFU is also amended.

In addition, the procedure of pension contribution collection of precious metals is modified. Individuals and legal entities are its payers now; they submit jewelry and household items made of precious metals for stamping to state companies of Assay Supervision. In this regard the form of relevant report to the PFU is also changed.

Mobilization and ATO

The Verkhovna Rada of Ukraine by the Law of Ukraine of 19.05.15, № 448-VIII (comes into force from the day following the day of its publication) amended the Law of Ukraine “On social and legal protection of military personnel and their families” of 20.12.91, № 2011-XII (hereinafter - the Law on social protection of military personnel). This time innovations related to the procedure, granting conditions and time length of leave for military personnel.

First, in case of failure to provide basic annual leaves to military personnel due to advent of special periods provided for by the paragraphs 17 and 18 of Art 101 of the Law on social protection of military personnel, such leaves should be provided next year. At the request of military personnel the basic annual leaves for two years could be combined, but total duration of the combined leave should not exceed 90 calendar days. The mentioned above leaves can be provided in several parts (more than two) without limitation of the duration of each of them.

Second, the duration of annual basic leave in a year of beginning of their service should be calculated at the rate of 1/12 of the length of such leave for each full month of service until the end of the calendar year - for military personnel, except for conscripts. It should be reminded that currently this regulation applies to all contract military personnel.

Third, at the request of military personnel, except cadets (trainee) of higher military educational institutions, the annual basic leave can be provided to them in parts, not more than two, on condition that its main continuous part is not less than 15 (currently 24) calendar days.

The Ministry of Social Policy of Ukraine in its letter “On average salary compensation to companies, which is paid to employees called up for military service during the mobilization during special period” of 07.05.15, № 525/13/84-15 indicated that to obtain the expenses compensation of the average wage to mobilized employees from the budget, company, institution or organization should accrue and pay average wage in the terms defined by Art. 115 of the Labor Code of Ukraine (i.e., make “actual expenses”), and provide information on their expenses to the social protection department before the 15th of every month. The Ministry of Social Policy of Ukraine also notes that the actual expenses are the real expenditures of the company, institution or organization executed by the relevant documents.

The Verkhovna Rada of Ukraine approved amendments to the Tax Code of Ukraine in part of war tax exemption of money allowances for military (the proposed law № 2980).

The law provides for war tax exemption of money allowances for law enforcement officials, military personnel and employees of the Armed Forces of Ukraine, the National Guard of Ukraine, Security Service of Ukraine, Foreign Intelligence Service of Ukraine, the State Border Guard Service of Ukraine, rank and file and command staff, military personnel, employees of the Ministry of Internal Affairs of Ukraine, the State Guard Department of Ukraine, State Service of Special Communication and Information Protection of Ukraine, and other military formations established under the laws of Ukraine and other people who are directly involved in the ATO during the period of its conduction.

Temporarily Occupied Territories

The Cabinet of Ministers of Ukraine by the Resolution of 04.06.15, № 367 (comes into force on the day of its official publication) determined the Procedure for the crossing of the administrative border of the free economic zone “Crimea” when entry into temporarily occupied territory of Ukraine and departure from the country of citizens of Ukraine, foreigners and stateless persons.

Entry into temporarily occupied territory of Ukraine and departure from it should be through control points. Thus the citizens of Ukraine, who cross the administrative border, should present any document confirming citizenship of Ukraine, and those who have not reached the age of 16 - under the rules of the state border crossing for such persons.

Foreigners and stateless persons cross the administrative border with their passport documents and special permits. This permission is issued by the territorial authority of the State Migration Service of Ukraine. The cases, when they should issue such special permits, are also called.

Control points of entry into the temporarily occupied territory of Ukraine/ departure from it for road service are “Kalanchak”, “Chaplina”, “Chongar”. For railway service are “Kherson”, “Melitopol”, “Vadym”, “Novooleksiyivka”.

Control and Responsibility

The State Fiscal Service of Ukraine in its letter “On application of penal sanctions” of 24.04.15, № 8828/6/99-99-17-02-01-15 reported: when adjustment calculating data under form № 1DF before the expiration of its submission, in other words the penal sanctions, provided in para.119.2 of the TCU, should not be applied in new reporting calculation.

The penal sanctions provided for by para.119.2 of the TCU are applied to tax agent for correction of errors in adjusted calculation after the deadline submission of form № 1DF. It should be recalled, this is about:

UAH 510 – for non-submission of f. № 1DF with violation of established term, not in full, with any false information or mistakes, if such false information or mistakes are reduced and / or increased tax liability of the taxpayer and / or changed the taxpayer;
UAH 1020 - for the same actions committed by the tax agent, to whom the penalty for such an offense was applied during the year.

Mentioned sanctions are not applied if the false information or errors in f. № 1DF arose due to reassessment of income amounts accrued (paid) in favor of individuals, and withheld tax from them according to para. 169.4 of the TCU, and corrected in accordance with Art.50 TCU.

The Cabinet of Ministers of Ukraine by its Resolution “On amendments and invalidation of certain Resolutions of the Cabinet of Ministers of Ukraine” of 17.06.15, № 419 abolished the state financial audit of budgetary institutions activity.

At the same time, the role of internal audit of budgetary institutions is strengthened, which is oriented to provision to the managing director of objective and independent conclusions and recommendations regarding the effective functioning of internal control.

Also, the amendments made to the Procedure of Presentation of Financial Statements approved by the CMU of 28.02.2000, № 419, and the Procedure of Planning Control and Auditing work by the State Financial Inspection and its territorial authorities approved by the Resolution of the CMU of 08.08.01, № 955.

In particular, the requirement of submission of audit report with conclusion of its authenticity, drafted by the State Financial Inspection or its territorial authority, together with the annual financial statements by the budget funds administrators is abolished.

Labour and Salaries

The State Fiscal Service of Ukraine in subcategory 301.04.01 ЗИР ГФСУ (zir.minrd.gov.ua) reported: even if the social insurance Fund delayed the payment of maternity leave, the employer to be obliged to pay withheld single contribution from the amount of accrued maternity benefit for relevant calendar month not later than the 20th day of the following month regardless of whether such amounts were actually paid or not after their accrual.

If the last day of payment of the single contribution accounts for weekend or holiday, the last day of such timing of payment of the single contribution should be the first working day following the weekend or holiday.

The Cabinet of Ministers of Ukraine promulgated the Resolution “On the procedure for notification of the State fiscal service and its territorial authorities of worker employment” of 17.06.15, № 413. The document enters into force from the date of its official publication.

The norm, under which the employee should not be allowed to work without notification of the fiscal body, appeared in Art.24 of the Labour Code of Ukraine since 01.01.15. However, its practical implementation is possible only after the entry into force of the mentioned Resolution.

The notification procedure is provided for under the prescribed form in one of the following ways:

means of electronic communication using a digital signature of responsible persons in accordance with the legislative requirements in field of electronic document management and electronic signature;
in hard copies together with a copy in electronic form;
in hard copies, if labour contracts are made with not more than five persons.

Accounting and Reporting

The State Fiscal Service of Ukraine informed: business expenditures on warranty repair (service provision) or guarantee replacement of sold goods, the cost of which was not compensated at the expense of their customers, should be determined according to general rules Accounting Standards 16 “Expenditures”.

Thus the Tax Code of Ukraine does not provide restrictions on recognition of expenditure on warranty repair and products replacement. That is when calculation of tax unit for income tax there is no need to make adjustments of financial result before taxation, determined in accordance with Accounting Standards under such transactions (see Letter of the SFS of Ukraine “On accounting of warranty repairs and replacement” of 24.04.15, № 8703/6/99-99-19-02-02-15).

Customs Policy

The State Fiscal Service of Ukraine in its letter of 28.05.15, № 18900/7/99-99-24-03-01-17 explained when and how importers of controlled goods should indicate information on the certificate of conformity of controlled commodities in the customs declaration (hereinafter - CD). The entering procedure of this information in the CD depends on the purpose of import of such goods. The appearance of this letter due to entry into force from 06.06.15 of part of the amendments made to the Procedure for customs clearance of goods imported into the customs territory of Ukraine and subjects to mandatory certification in Ukraine, approved by the Cabinet of Ministers of 14.05.08, № 446 (hereinafter - Procedure № 446).

In particular, a new list of goods is in effect now. These goods are the subject to mandatory certification, the customs clearance of which is regulated by the Procedure № 446. These are controlled goods placed in customs regime of import, if they are:

imported by legal entities and intended for sale in the territory of Ukraine;
imported by citizens in the territory of Ukraine and should be certified with CD submission provided for enterprises;
classified as means of transport, components, assemblies and their parts.

Controlled goods are those, which are subject to mandatory certification in Ukraine, name (description) and classification code under UCCFEA (Ukrainian Commodity Classification for Foreign Economic Activity) coincide with the name of products and UCCFEA code specified in the list approved by the Ministry of Economic Development. If only the name or the code coincides, the commodity is not the subject to mandatory certification.

Import merchant defines the purpose of import of goods to Ukraine through the application of it in CD (or another document that is used instead of CD for goods declaration in the customs regime of import).

1. Importers - legal entities that declare controlled goods using CD, depending on the purpose of import should fill in its relevant columns as follows:

if products intended for sale, the information on the certificate of compliance (certificate of recognition of conformity) should be written in to the column 44 under the code “5111” (or “5114”);
if the goods are not intended for sale, the information on the certificate of compliance (certificate of recognition of conformity) should not be indicated in the column 44. In this column under the code “5506” should be written the number and date of the message of declarant that the imported goods are not intended for sale in Ukraine and dated symbol “d” before the document code “5506” (to amendments in the Classifier of documents approved by Ministry of Finance of Ukraine of 20.09.12, № 1011).

2. The information on the certificate of compliance (certificate of recognition of conformity) regardless of the purpose of their importation should be indicated in column 44 under the code “5111” (or “5114”) when import of controlled goods by citizens, goods that are subject to declaration with submission of CD provided for enterprises.

It is about errors related to adjustments of tax liabilities and credit, in particular, about the inclusion of tax invoices issued in 2014 in credit.

Processing companies when correcting mistakes of previous years should fill in AC with the following details:

the mark in line 0140 should be made in the heading of AC. The AC is submitted as a separate document;
if the VAT amount, which was the subject to transfer on special account of the processing company to 01.01.15, is increased when the error correction, it should be recorded in line 25.1 of AC and the penalty is charged in the amount equal to 3% in line 26. The tax and the penalty are to be paid to the budget and reflected in the integrated map of a taxpayer as separate charges on the date of AC submission;
if this VAT amount is decreased (or increased / negative value decreased) when the error correction, such amount is taken in account in line 29 of sec. IV of the declaration for the reporting period when the AC is given. Also, it is fixed in column 11 of Table 1 of Annex Д2 to this declaration.

Financial Markets

The National Bank of Ukraine by the Board Resolution “On settlement of the situation in the monetary and foreign exchange markets of Ukraine” of 03.06.15, № 354 (hereinafter - Resolution № 354) extended the anti-crisis measures from 04.06.15 for another 3 months (to 03.09.15).

It should be remembered that the NBU Board Resolution of 03.03.15, № 160 has been terminated since 03.06.15, which establish the anti-crisis measures to stabilize the monetary and foreign exchange markets.

Resolution № 354 also includes a number of provisions on restrictions liberalization in the monetary market, which are as follows.

1. The NBU increased the maximum balance amount of foreign exchange funds on the accounts of resident customers (except individuals), over which the authorized banks are not allowed to buy foreign currency on their behalf. Now this limit is $ 25 000 (previously it was USD 10 000).

2. The cash withdrawal limit in hryvnia via cash desks and ATMs is increased – from UAH 150 000 to UAH 300 000 per day per customer. This restriction still does not apply to cash withdrawal on salaries, business trip expenses, pensions, stipends and other social and equated to them payments (excluding financial aid). It also does not operate when payment of guaranteed compensation amounts to the investors at the expense of guarantee Fund of individuals’ deposits.

Term of payments for export and import transactions, should not exceed 90 calendar days.

The requirement on sale in the interbank foreign exchange market is still the same, 75% of revenues in foreign currency from abroad in favor of:

legal entities;
entrepreneurs;
foreign representatives (except official representatives);
on accounts opened in authorized banks for joint activities conducting without formation of legal entity;
revenues in foreign currency on accounts of residents opened outside Ukraine on the basis of individual licenses of the NBU.

The National Bank of Ukraine by the Board Resolution “On Amendments to the Resolution of the National Bank of Ukraine dated 30 December 2003 № 597” of 03.06.15, № 355 (entered into force 04.06.15) increased the maximum cost amount from EUR 25 000 to EUR 50 000 under the contract with non-resident of executed works (services), intellectual property rights, when documentary confirmation of compliance of contract prices with market conditions to be necessary (the price examination certificate of the State information and analytical monitoring center of external commodity markets).

The National Bank of Ukraine legalized WebMoney.UA. WebMoney.UA Payment System received the official status of domestic non-bank payment system of Ukraine and entered into the relevant Register of the NBU payment systems.

Transfer Pricing

The Cabinet of Ministers of Ukraine approved the Procedure for prices range calculation (profitability) and the median of such range for transfer pricing purpose (hereinafter - Procedure) by the Resolution of 04.06.15, № 381.

It is developed to implement paragraphs 39.3.2.3 of the TCU, which determine the criteria according to which the price (or rate of profitability), applied in a controlled transaction, is in line with regular.

The lower and upper prices ranges (profitability) are calculated under this Procedure, and also the procedure for determining of median prices range (profitability). The latter is used if the price (profitability) of controlled transaction is outside the range instead of its minimum / maximum value (provided that use of the median not to lead to underestimation of the tax amount).

In its turn, the previous Procedure of calculation and application of market prices range and market profitability range for transfer pricing purpose approved by the CMU of 17.10.13, № 763 lost its validity.

Financial monitoring

The Ministry of Finance of Ukraine in its letter “On performance of duties of subject of primary financial monitoring by auditors and audit firms” of 28.05.15, № 31-11010-08-10/17417 explained that auditors and audit companies acted as subjects of primary financial monitoring if they were involved in certain financial transactions for their client. In particular, if the financial transactions related to:

real estate purchase;
management of client’s assets;
bank account managing or securities account;
fundraising for the formation of legal entities or providing them with activities (including audit) and their management;
purchase and sale of legal entities (corporate rights).

Then auditors (audit companies) are obliged to be registered in the State Service for financial monitoring of Ukraine as subjects of primary financial monitoring. In addition it should be done not later than the date when establishment of business relations with the client (conducting of financial transaction) in mentioned cases.

In case of violations the Ministry of Finance of Ukraine should make a decision on the application of sanctions to the subject of primary financial monitoring (concerning statutory auditors and audit firms).

The other things

The State Fiscal Service of Ukraine released the draft order of the Ministry of Finance “On Approval of Regulations on the Register of non-profit organizations and institutions” on its official web-site.

As fiscals explain, the draft order is developed to bring the Regulations on the Register in line with requirements of new version of Art.133 of the Tax Code of Ukraine (hereinafter - TCU). New document provides:

determination of characteristics of unprofitability of organizations or institutions according to the list of subjects and criteria specified in the new version of the TCU;
disapplication of necessity to re-enter in the Register organizations and institutions that meet the new version of Art. 133 of the TCU and has been already entered in the Register as of 01.01.15;
implementation of transitional six month period to update the Register. During this time, the tax authorities should check non-profitable organizations entered in the Register and inform them about the exclusion from the Register if they do not meet the new requirements.

Comments and suggestions to the draft are accepted by the SFSU experts within one month to the address: mail – 04655, the MCL, Kyiv-53, Lviv Square, house 8, the Department of methodological work on taxation issues, e-mail - lhropun@sfs.gov.ua, and to the postal address of the State Regulatory Service of Ukraine - 01011, Kyiv city,. Arsenal Street, 9/11.

The Ministry of Social Policy of Ukraine in its letter of 27.05.15, № 7776/0/14-15/5 “On the right of certain categories of citizens to free travel in transportation utilities” reported: participants of the war, victims of Nazi persecution, persons born in time of war, labor veterans, for whom “status” benefits were canceled from 01.06.15, could use the right to free travel in urban and suburban transport under the general benefit as retirement pensioner or people with disabilities.

The municipal executive committees and local authorities should provide this right. The compensations for travel privilege in the form of subventions from the state budget to local budgets in the amount of UAH 1.9 billion (at last year’s level) is provided for in the budget of Ukraine for 2015 for this purpose.

It should be reminded that the Law of Ukraine dated 28.12.14, № 76-VIII “On amendments and invalidation of Certain Legislative Acts of Ukraine” of 01.06.15 canceled the right to free travel in urban and suburban transport of certain categories of citizens, in particular: labor veterans, persons born in time of war, participants of the war, victims of Nazi persecution, the family members of the victims (dead) Veterans of War, disabled people of group III and others.

At the same time, retirement pensioners and disabled people preserve the right to free travel in public municipal passenger transport (excluding metro and taxi) and suburban routes according to the CMU Resolutions “On free travel of pensioners in public transport” of 17.05.93, № 354 and “On extension into force the Resolution of the Cabinet of Ministers of Ukraine dated 17 May 1993, № 354” of 16.08.94, № 555.

The Ministry of Justice of Ukraine in its letter “On application of provisions of the Law of Ukraine dated 5 March 2015 № 247-VIII “On Amendments to certain Laws of Ukraine on specification of the authority of notaries and registration peculiarities of secondary property rights for the Agricultural Land Plots” of 02.04.15, № 13-32/114 clarified what should be done to register the property right for the Agricultural Land Plots derivative of property rights, right of ownership for which arose and documented before 01.01.13. For this purpose a person should submit only one application for state registration of rights and their encumbrances (on other property rights).

Then the state registrar or notary via software of the State Register of rights to immovable property forms two statements: on the state registration of property rights and on the state registration of other property rights.

Because the applicant submits a single application for state registration of rights and their encumbrances (on other property rights), he/she should pay only for the services of state registration of other property rights.

Legislation Overview (June 2015)