Legislation overview (December 2015)

Legislation overview (December 2015)

Taxes

Tax Reform

The Verkhovna Rada of Ukraine adopted the Law “On Amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine on provision of balance of budget revenues in 2016” (the legislation was registered under № 3688).

The legislative act provides for the regulations concerning the authority of united territorial communities to participate in tax relations, including the establishment of local taxes and fees, provision of tax benefits and partly change the reason for a documentary unscheduled inspections in a part of exceptions of inspection of violation of tax legislation as well as by the results of audits of other taxpayers.

The law provides for establishing of Register of applications for return of sums of budget refund. The data to the Register should be added in chronological order of receipt of applications as well as the return of agreed amounts of budgetary compensation should be in chronological order according to the order of inclusion of applications for refund of amounts of budgetary compensation in the Register.

According to the explanatory note the following changes to be provided for:

• improvment of the procedure of VAT refund from the budget, which should provide  the same requirements and rights for all taxpayers, including the order of making the applications for  VAT refund;
• introduction of official publication of information on VAT refunds from the budget in the form of a Register with reflection of data about the taxpayer in it, declared to the compensation of tax amounts from the budget  and conditions of their reimbursement;
• introduction of taxation of VAT transactions of services on the transit of natural gas with automatically repealing of rent  payments for natural gas transportation  by pipelines in the territory of Ukraine;
• introduction of the VAT exemption for goods and services supplied and imported as international technical assistance and financed at the expense of international technical assistance;
• introduction of VAT exemptions for banks’ transactions and other financial institutions of property supply acquired by them in ownership as a result of foreclosure on such a property;
• a unified base establishing in an amount of 18% (instead of two current rates of 15% and 20%); rate is 5% for dividends;
• tax exemption of funds amounts provided to the taxpayer by  the international financial institution in connection with implementing measures on energy efficiency and energy conservation;
• tax exemption of amounts forgiven (cancelled) by the lender under credits in foreign currency, obtained to purchase a single housing (mortgage loans);
• rates reduction of  annual income of 20 million hryvnias to 5 million hryvnias for taxpayers of group III;
• rates increasing for taxpayers of group III: from 2 to 3% (for VAT payers) and from 4 to 5% (for non-payers of VAT);
• increasing of rates of the unified tax for taxpayers of group IV in 1.8 times (agricultural enterprises);
• abolition of payment of advance payments on corporate income tax;
• introduction of quarterly reporting period for income tax for companies, which annual income is over 20 million from any activity.

The legislation provides for increasing of rate of excise tax on alcohol, alcohol distillates and alcoholic drinks by 50% in relation to the current today, for beer by 100%, for wines by 100% except natural grape wines.

In addition, specific rates of excise tax on tobacco products, tobacco and manufactured tobacco substitutes, and the minimum excise tax burden and payment of the excise tax on tobacco products to be increased by 40%, ad valorem rate to be left unchanged.

It is also proposed to establish minimum wholesale and retail prices for tobacco products, tobacco and manufactured tobacco products.

The procedure of preferential taxation of agricultural enterprises was amended, in particular special VAT regime.

It is known that under the current system of special regime accrued VAT amount is not the subject to payment to the budget and totally remains under control of enterprise.

The law also amended the Law of Ukraine “On the collection and accounting of Unified contribution for obligatory state social insurance”, “On Customs Tariff of Ukraine”, “On State Registration of Legal Entities and Individual Entrepreneurs”, “On compulsory state pension insurance”.

VAT

The State Fiscal Service of Ukraine in its letter “On charging of tax liabilities on VAT in case if a newly constructed housing is to be used in transactions exempted from tax” of 30.11.15, № 25585/6/99-99-19-03-02-15 noted that the transaction of services supply of the construction of housing for a construction company (contractor) is the first supply of housing in accordance with paras.197.1.14 of TCU, and therefore these transactions are taxed at the rate of 20% VAT. Further sales of newly constructed housing to third parties are already exempt from tax under the same norm.

Accordingly, the customer who received the tax invoice (hereinafter – TI) from the contractor with the amount of 20% VAT and included it to a tax credit should accrue the tax liabilities and write out a consolidated TI at the request of para. 198.5 of TCU, based on the tax base under p. 189.1 TCU. It should be done no later than the last day of the month when such works are to be used in privileged transactions.

At the same controllers clarify: if it was known that construction works purchased before 01.07.15 intended to exempt transactions, but the amount of VAT paid in connection with their acquisition, the customer included them in the tax credit, in this case the clarifying calculation to the declaration should be made for the corresponding period and reduce such an amount of tax credit.

However, tax officers report that the customer of residential properties is entitled to adjust the initial value of this preferential housing on the amount of tax credit paid by the contractor of VAT on condition of proper adjustment (reduction).

The State Fiscal Service of Ukraine by its letter “On the procedure of making of adjustment calculation to the tax invoice, if the buyer loses VAT status on the date of return of the goods” of 27.11.15, № 11145/Б/99-99-19-03-02-14 reported that since the buyer is not entitled to a tax credit adjustments, therefore the adjustment calculation should not be made.

The fiscal office did not provide detailed explanation of such conclusion, but it can be assumed that it is caused by the operation of electronic VAT administration. The adjustments calculation would not be registered in the Unified Register of tax invoices, if individual tax number of the buyer is excluded from the register of VAT payers.

The State Fiscal Service of Ukraine in its letter “Concerning the calculation of the excise tax on retail of excisable goods” of 08.12.15, № 26231/6/99-99-19-03-03-15 confirmed that retailers of excise goods should not impose VAT on excise amount from retail sales.

That is, when calculating of the retail excise liabilities (TLe) and VAT (TLvat) as before it is necessary to use formulas:

TLe = ARP: 105 х 5

TLvat = (ARP – Tle) : 120 х 20,

where ARP is the actual retail price (price in fiscal check) including VAT and excise tax accrued on this price.

Controllers note that if the retailer paid excise tax from sales and VAT in excessive amounts to the budget, according to the para.50.1 of the Tax Code of Ukraine, the retailer is entitled to:

• submit clarifying calculation and adjust tax liabilities for the periods when the mistakes to be revealed;
• or to adjust tax liabilities as part of the tax declaration, which should be submitted for the tax period following the period when the mistakes to be revealed. Thus, the penal sanction is not applied because there is no the fact of understatement of tax liability.

As for the letter of ICAB SFS (Interregional central administrative board of SFS) - CO of SLT (central office of servicing of large taxpayers) of 18.09.15, № 21987/10/28-10-06-11 (in which a different formula for the excise calculating is submitted and VAT with mutual accrual one tax on another), the General Fiscal Office obliged the letter to be withdrawn. The reason is the contradiction with official position of the SFS.

Corporate Income Tax

The State Fiscal Service of Ukraine in its letter “On adjustment of financial result before imposition of company income tax dated 01.01.2015” of 01.12.15, № 26240/10/28-10-06-11 notes that sec.III TCU does not provide the adjustment of financial result before taxation on obtained amount from 01.01.15 and not returned repayable financial assistance from income tax defaulter.

In addition, according to the controllers, it is not provided adjustments of financial results on goods cost (works, services, non-current assets) purchased from unified tax payers.

It is commented in the letter: there are no adjustments of financial result before taxation and on the amounts of interests for using of tax instalments. These expenses are involved when determining financial result before taxation according to the rules of accounting.

The State Fiscal Service of Ukraine in its letter “On differences which are accounted when determining of income assessed by the income tax in the case of transactions with investment property” of 17.12.15, № 27011/6/99-99-19-02-02-15 informed on tax differences in income tax accounting of investment property, which to be evaluated according fair value. According to state financial control, item of investment property is not to be depreciated according to Accounting Standards 7 “Fixed Assets”. Therefore, the taxpayer should not adjust financial result before taxes on the difference in accordance with Art.138 of TCU.

It should be noted that according to paras.141.2.1 of TCU financial result to be increased before tax on the amount of reduction of investment property conducted by accounting rules that exceeds the amount previously conducted revaluation of assets.

Other taxes and fees

The Verkhovna Rada of Ukraine adopted the Law “On measures for encouragement of foreign economic activity” of 10.12.2015, № 886-VIII (Law № 3533).  The Law from 1 January 2016 fully abolished additional import duty (the Law of Ukraine “On measures of stabilization of balance of payments of Ukraine according to Article XII of the General Agreement on Tariffs and Trade 1994” of 28.12.2014, № 73-VIII).

State budget

The Verkhovna Rada of Ukraine adopted the Law “On the State Budget of Ukraine for 2016” (the legislation was registered under №3000).

The legislative act for 2016 establishes the following general indicators of the State budget:

• revenues amounting to UAH 595.1 billion;
• expenditures amounting to UAH 684.5 billion;
• the budget deficit is set at 3.7% of projected GDP.

The document established minimum living wage per person per month from 1 January 2016 in the amount – UAH 1 330, from May 1 – UAH 1 399, from December 1 – 1 496 UAH, and for basic social groups and demographic groups of population:

• children under 6 years: from 1 January 2016 - UAH 1 167, from May 1 – UAH 1 228, from December 1 – UAH 1 313;
• children aged from 6 to 18 years: from 1 January 2016 – UAH 1 455, from May 1 – UAH 1 531, from December 1 – UAH 1 637;
• able-bodied persons: from 1 January 2016 – UAH 1 378, from May 1 – UAH 1 450, from December 1 – UAH 1 550;
• people who  are unable to work: 1 January 2016 – UAH 1 074, from 1 May – UAH 1 130, from December 1 – UAH 1 208.

The minimum wage in 2016 is set at a monthly rate: from 1 January – UAH 1378, from May 1 – UAH 1 450, from December 1 – UAH 1550. By the hour rate: from January 1 – UAH 8.29, from May 1 – UAH 8.69, from December 1 – UAH 9.29.

The law provides that in 2016 the minimum subsistence level (guaranteed minimum) for the appointment of aid under the Law of Ukraine “On state social assistance to needy families” as a percentage to the subsistence minimum for basic social and demographic groups of population is: for able-bodied people – 21 percent, or children – 85 percent, for people who unable to work and for disabled people – 100 percent of the relevant living wage.

The size of state social assistance to needy families in 2016 should not be more than 75 percent of provision level of minimum living wage for a family.

The level of provision of living wage (guaranteed minimum) for eligibility for exemption from payment for child nutrition in state and communal children’s pre-school institutions under the Law of Ukraine “On Preschool Education” should be increased in 2016 according to the growth of living minimum wage.

Public Procurement

The Verkhovna Rada of Ukraine adopted the Law “On public procurement” (№ 3559), which introduced electronic procurements.

The document is applied:

• to customers on condition that purchase price of an item of goods (goods), service (services) equals or exceeds UAH 200 thousand and works – UAH 1.5 million;
• to customers that carry out activities in specific areas of economic activity on condition that purchase price of an item of goods (goods), service (services) equals or exceeds UAH 1 million and works - 5 million.

During the procurement of goods and services which price is less than established price in sections 2 and 3 of this paragraph, the customers are entitled to adhere to principles of public procurement established by this Law, and can use e-procurement system for the purpose of selecting a supplier of goods, services provider, and works performer for contract conclusion.

In the case of procurement of goods, works and services without the use of e-procurement system on condition that the cost of the purchase equals or exceeds UAH 50 thousand and is less than the cost established in sec. 2 and 3 of this para., the customers are required to make public a report on the agreements concluded in the electronic procurement system.

The Ministry of Economic Development and Trade of Ukraine issued an Order “On approval of the National Classifier of Ukraine DK 021: 2015 and the abolition of the National Classifier of Ukraine DK 021: 2007” of 23.12.15, № 1749.  Recently, all learned about new rules of procurement subject determining. The Ministry of Economic Development ordered from 01.01.16 to define it under the fifth National Classifier of Ukraine “Unified procurement dictionary” (CPV: 2002, IDT) DK 021: 2007.

Currently, the Ministry prepared a New Year surprise to all customers of procurements. The point is that mentioned classifier DK 021: 2007 loses its validity from 1 January 2016. Unified procurement dictionary DK 021: 2015 comes to replace. Therefore for all initiated biddings next year should use a new classifier.

The Ministry of Economic Development and Trade of Ukraine in its letter “On amendments of the funding sources under the procurement contract” of 02.12.15, № 3302-05/40268-07 notes: public-procurement contract should take into account nuances determined by sec.5 of Art.40 of the Law of Ukraine “On public procurement” of 10.04.14, № 1197-VII, but still is the subject to the general rules of conclusion and implementation of agreements established by the Civil Code of Ukraine (hereinafter – CCU) and the Commercial Code of Ukraine. One of them - a signed contract is binding upon the parties (sec. 1, Art. 629 of the CCU).

Therefore, the Ministry insists, if the funding source is to be changed under the procurement contract concluded by the results of the procurement procedure, it is not required to announce new bids. Concluded contract remains binding for all parties.

Control and Responsibility

The Ministry of Internal Affairs of Ukraine by its Order of 02.11.15, № 1337 approved the procedure for conducting of planned (unplanned) audits on business entity compliance with legislation requirements in field of civil defence, technological and fire safety.

Thus, inspections should be conducted by The State Service for Emergency Situations (hereinafter - SSES) or its territorial bodies but not the Ministry of Internal Affairs of Ukraine. The procedure clearly stated that inspection should be carried out in presence of the head or his/her deputy or authorized person of a company.

In turn, SSES or its territorial bodies quarterly approves plans of conduction of planned inspections, and publishes on its official website to the 25th day of the last month of the quarter preceding the planned, but not until the 20th day as before.

Also, the inspection report should be drafted only in case of violations. And only report should be drafted when there are no any violations. In addition, SSES or its territorial bodies have the right not only to hold guilty officials and citizens administratively liable for violations but also to apply administrative and economic sanctions.

The Ministry of Finance of Ukraine by its Order of 25.11.15, № 1088 approved the procedure for conducting of counter-checks during the documentary field checks of compliance with the laws of Ukraine on Civil customs (hereinafter – Procedure) by the State Fiscal Services of Ukraine (hereinafter – Procedure).

The mentioned counter verification is carried out if the person to a written request of customs officers does not give explanations and necessary documentary proofs about product that moved through the Ukrainian border. That person is given three working days of receipt of the request. If the person misses the deadline, customs officers are entitled to conduct counter verification, for preparation of which they are provided further 2 working days. At the results of counter verification a person or his/her authorized representative should be given a corresponding certificate for a signature.

The Ministry of Finance of Ukraine by its Order “On approval of the Procedure of submission of the application by the taxpayer on implementation of unscheduled electronic remote audit and decision of the controlling authority about such verification” of 20.11.15, № 1040 determined the procedure of submission of the application by the taxpayer on implementation of unscheduled electronic remote audit.

This application should be submitted in a form approved by the mentioned regulations.  The following should be noted in it among other things:

• tax periods of economic activity that are the subject to electronic verification;
• a taxation system that is applied by the payer;
• a list of taxes that to be verified during electronic verification;
• electronic accounting keeping;
• electronic keeping of primary documents confirming the legality of accounting.

The documents in electronic form related to the calculation and payment of taxes and duties should be submitted to the taxmen together with the application. Of course, the conditions for registration of an electronic signature of reporting entities should be maintained.

This statement and the documents attached thereto can be submitted in several ways, namely: by registered mail with confirmation receipt and the description attached directly to the supervisory authority or by electronic means electronically in compliance with the conditions for the registration of an electronic signature of reporting entities.

The application to be submitted during 10 calendar days before the expected start of the electronic verification, but not before official notification of the Ministry of Finance on the introduction of such a check for certain categories of taxpayers, such as simplified, business entities of micro, small, medium enterprises or other payers.

Labour and Salaries

The Cabinet of Ministers of Ukraine by its Resolution “On regulation of wage structure, special aspects of indexation and amendments to some regulatory legal acts” of 09.12.15, № 1013 adjusted the Procedure of indexation of money incomes of the population, approved by the Resolution of the CMU of 17.07.03, № 1078.

Now, if the salary of the employee rose by due to separate components (payments, allowances) and his/her salary was not increased, this month should not be considered to be basic for indexing purposes.

If consumer price index for indexation, calculated by accrued total, exceeds 10%, the Cabinet is obliged to approve a decision on appropriate salaries increase of government employees and other workers of the public sector.

To index the scholarships, consumer price index should be calculated in a month when the scholarship is granted. So if a student did not receive a scholarship or lost the right to it and then the scholarship was granted again - consumer price index should be calculated from the month of the grant. But the month should not be basic for indexation when the scholarship amount increased for success or when other academic scholarships (for example, scholarship of the President of Ukraine, the Cabinet, personal scholarships etc.).

Finally consumer price index for indexation of incomes of promoted and new employees and also those who returned to work after child care leave up to the age of three years should be calculated in the month following the month of the salary increase for the position that the employee holds.

The Cabinet of Ministers of Ukraine by its Resolution “On amendments to the Resolutions of the Cabinet of Ministers of Ukraine dated 2 August 1995, № 597 and dated 19 May 1999, № 859” of 11.11.15, № 1034 improved material support of heads of state-owned enterprises, provided for by the typical form of a contract.

In particular, there are given cases when additional premium could be charged for managers. The premium could be for the results of the year or quarter in accordance with the conditions, indexes and bonuses sizes approved by the body of property management. A reward for the results of a year should be paid to the head of state-owned enterprise at the expense of net income. Reward for long service withdrawn from additional payments under the typical form of a contract.

The Resolution “On conditions and wages for company managers based on state and communal property and associations of state owned enterprises” of 19.05.99, № 859 was also amended.

Thus, the size of the salary of managers of these enterprises should be charged at a rate of minimum wages (salary) of the employee of a basic profession (according to the Annex to the Resolution). Multiplicity depends on the average number of employees in equivalent of full employment for the year, the value of assets of a company or net income from sales of goods (works, services) according to the latest annual financial statements.

Premium for the results of the quarter should be charged in the amount of 3 monthly salaries of the head, and for the year - in the amount of 24 monthly salaries of the head. The premiums amount is to be reduced in the case of a number of negative indicators in the enterprise activity.

The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure of granting pensions at the expense of companies’ funds and organizations to certain categories of workers on the results of certification of workplaces on working conditions” of 09.12.15, № 1021 approved amendments to the Procedure for granting pensions at the expense of companies’ funds and organizations to certain categories of workers on the results of certification of workplaces on working conditions.

The mentioned above Procedure applies to employees who work (worked) for productions, jobs, by professions and in positions, which are not provided by the List № 1 and List № 2.

Thus, soon a retirement pension on preferential conditions should be appointed to the following categories of workers:

1) men – if the work experience is at least 30 years (currently – 25), including at least 12 years and 6 months of work experience that gives a right to a pension on preferential conditions at the company, in the organization at the expense of which the pension is appointed;

2) women – if the work experience is at least 25 years (currently – 20), including at least 10 years of

work experience that gives a right to a pension on preferential conditions at the company, in the organization at the expense of which the pension is appointed;

In addition, in the absence of mentioned duration of work experience in the period before 1 April 2024, retirement pension on preferential conditions should be appointed to men and women in the presence of smaller work experience.

The Cabinet of Ministers of Ukraine by its Resolution “On Approval of License conditions of business activities of mediation in employment abroad” of 16.12.15, № 1060 approved the licensing conditions for business activities of mediation in employment abroad. The conditions established a comprehensive list of the documents attached to the application for obtaining a license, as well as a comprehensive list of compulsory requirements when the mentioned activity to be performed.

In particular, it is determined that an essential annex to the agreement on the provision of mediation in employment abroad is a certified by a licensee copy of agreed project of an employment contract with a foreign employer.It is also provided that the licensee has no right to receive payment for services before the day of a receiving by the client of the signed copy of an employment agreement by the foreign employer and signing of the act of rendered services.

Financial Services

The National Bank of Ukraine by its resolution “On approval of Amendments to the Regulations on procedure of opening, using and closing of accounts in national and foreign currencies” of 27.11.15, № 833 amended the Regulations on procedure of opening, using and closing of accounts in national and foreign currencies, approved by the NBU Board dated 12.11.03, № 492 (hereinafter - Regulation).

1. Section 2 of the Regulation is dedicated now not only to identification but also to verification of clients. It should be noted that verification of a client means identifying (confirmation) of correspondence of the client (his/her authorized representative) by the entity of initial financial monitoring in his presence using received identification data from him/her (para. 1 of Art. 1 of the Law of Ukraine “On preventing and combating legalization (laundering) of proceeds of crime, terrorist financing and the financing of spread of weapons of mass destruction” of 14.10.14, № 1702-VII).

During the identification and verification of the client the bank should establish identification data of this customer under Art.9 of mentioned Law.

2. The restrictions on the opening of only one current account (in national and/or foreign currency) are removed for contracts on joint activity without creating legal entity.

3. The Regulation is supplemented by a requirement to authorized bank employees to certify by their signatures/electronic signatures the printed/copied information from the Unified State Register of Legal Entities and Entrepreneurs on the business entity, received in the form of open access via the official website of the Ministry of Justice of Ukraine.

4. The Regulation is amended be the following norm for investors-companies: under the bank deposit agreement, at the request the bank is obliged to issue a contribution or part thereof on first-demand. The return of bank deposit account and interests to investor-business entity at the demand to the expiration of the term is possible only when it is provided for by the contract conditions of bank deposit account. It should be noted that Art.1060 of the Civil Code of Ukraine (hereinafter - CCU) provides for such conditions. This new norm replaced the previous one according to which accrued interest on deposits of business entity could be transferred to current account or be credited to contributions replenishment under the contract.

5. The similar amendments are made also for investors-individuals. It is legislated in the Regulation, the issuance of deposit (or part thereof) investor-individual at the first request regardless of the contract conditions of bank deposit account. However, this condition was not consistent with Art.1060 of the CCU.

The National Bank of Ukraine by its Resolution “On settlement of the situation in the monetary and foreign currency exchange markets of Ukraine” of 04.12.15, № 863 extended currency restrictions.

Thus, the regulator extended requirements on:

• compulsory sale of revenues in foreign currency in Ukraine in favor of legal entities in the amount of 75%;
• payments for transactions of export and import of goods to 90 days;
• prohibition of early repayment of credits by residents, loans in foreign currency under contracts with non-residents;
• reassessment from current account in  foreign currency in amount not exceeding UAH 150 000 per month and others.

Also the following is implemented by the NBU Resolution:

• restriction on the transfer of currency in the amount of UAH 150 000 does not apply to non-cash payments, engaged with the use of electronic means of payment in order to pay for goods and services for personal consumption of individuals;
• it is abolished the ban on foreign currency buying for further transfer of funds received by foreign investors from selling of government bonds of Ukraine not only on stock exchanges, as before, but also beyond their borders;
• requirement of compulsory sale of 75% of currency does not apply any more to credits that are provided to the resident-borrower with participation of foreign export and credit agency to perform the obligations under import contract to non-resident, and cash security (guarantee, mortgage, earnest money, deposit), which is provided by the non-resident to participate in competitive bidding during implementation of public procurement;
• the banks are allowed not to perform compulsory sale of revenues, which to be returned at the initiative of the foreign bank recipient  within 7 days after the date of their transfer (previously this term was 2 days).

Summary of Court Rulings

The Supreme Court of Ukraine in its Resolution “On recovery of average earnings when the wage arrears by the company in ATO zone” of 11.11.15, with regard to case № 6-2159цс15 emphasized: if there is force majeure, the average wage for all the delays on the day of the actual payment should not be collected from the company in favor of a worker. The labour legislation does not regulate relations with the compensation of material and moral damage. Therefore, the provisions of civil law are applied to the requirements for compensation due to late payment of amounts to the employee i.e. a kind of compensation for property damage and compensation for moral damages.

A person, who has violated the obligations, is exempt from liability for its infringement, if the person proves that the violation to be due to accident or force majeure. The Chamber of Commerce and Industry of Ukraine (also its authorized regional chambers of commerce) certifies and issues a certificate of such circumstances.

Since the company had the certificate that confirmed the occurrence of force majeure before the dismissal of an employee, the court refused to collect average wage from the former employer for the delayed payment of wages and compensate the moral damage.

It should be reminded that force majeure (circumstance of insuperable force) – extraordinary and unavoidable circumstances, which objectively make it impossible to perform obligations under conditions of the contract (contract, agreement etc.), obligations under the laws and other regulations, such as: threat of war, armed conflict or serious threat of such conflict, including, but without limitation of enemy attacks, blockades, military embargo, acts of a foreign enemy, general military mobilization, war, declared and undeclared war, acts of public enemy, disturbances, acts of terrorism, sabotage , piracy, disorders etc.

Other Things

The Cabinet of Ministers of Ukraine by its Resolution “On Approval of License provisions of tour operator activities” of 11.11.15, № 991 approved new License provisions of tour operator activities.

The Resolution amended the list of documents to be submitted together with the application for license obtaining:

• the data on places of tour operator activities should be submitted instead of the data on the availability of own or leased office space (office) (Annex 2 to the Resolution № 991);
• also, it is required to submit copies of documents (extracts) certified by the head (authorized agent), which confirm qualification level and work experience of the director;
• a copy of the document confirming the financial provision of civil liability to the tourists (bank guarantees or other credit institution) should be certified by the head of license applicant  (authorized agent). In other words, this copy is not required to be certified by a notary.

The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine regarding the empowerment of local governments and optimization of administrative services provision” of 10.12.15, № 888-VIII and entitled local governments to provide the most popular administrative services.

For example:

• to provide information from the State Land Cadastre in accordance with the law;
• to keep a register of local communities (i.e., register/remove from registration a place of residence of individuals).

Such services should be provided through the centres of administrative services. They are established in Kyiv and Sevastopol city state administrations, district administrations, districts in Kyiv (Sevastopol city), state administrations, the executive body of the city council of the regional, republican values of Autonomous Republic of Crimea. Other local authorities are entitled to establish centres of administrative services of their own initiative.

At the same time legislators established new administrative fee rate (including registration of residence for a person, information provision from the State Land Cadastre).

The State Fiscal Service of Ukraine in its letter “On differences which are accounted when determining of income assessed by the income tax in the case of transactions with investment property” of 17.12.15, № 27010/9/99-99-19-02-02-15 informed on tax differences in income tax accounting of investment property, which to be evaluated according fair value. According to state financial control, item of investment property is not to be depreciated according to Accounting Standards 7 “Fixed Assets”. Therefore, the taxpayer should not adjust financial result before taxes on the difference in accordance with Art.138 of TCU.

It should be noted that according to paras.141.2.1 of TCU financial result to be increased before tax on the amount of reduction of investment property conducted by accounting rules that exceeds the amount previously conducted revaluation of assets.