Taxes
VAT
The State Fiscal Service of Ukraine in its letter “On the procedure of taxation of VAT transactions of the taxpayer − resident on the provision of engineering services (repair of industrial equipment) to non-resident outside the customs territory of Ukraine and reflection of such transaction in the tax return of VAT” of 03.03.17 No.4484/6/99-99-15-03-02-15 reported that the place of provision of services in repair of industrial equipment should be determined as the place of supply of engineering services under sub-para. “в” of para. 186.3 of TCU. In other words tax officers associate it with the location of the recipient of services. So, if the customer is a resident, then the place of supply is located outside Ukraine. That is, there is no need to accrue the value added tax (hereinafter − VAT) on the repair works: there is no the subject to taxation provided by sub-para. “б” of para. 185.1 of TCU.
The State Fiscal Service of Ukraine in its letter “On the determining of the reporting period in which the payer has grounds for formation tax credit with VAT based on account for centralized water supply and sewerage centralized” of 03.03.17 No. 4476/6/99-99-15-03-02-15 emphasized: if a VAT payer in the period of the right to a tax credit (event, which took place earlier - the date of payment services or the date of receipt of services) did not include in the tax credit amount of VAT based on the accounts of water utility, then these tax amounts could be included in the tax credit by submission of clarifying calculations (including the three-year limitation period) with corrected mistakes in periods when such a right arose.
As fiscal authorities repeatedly emphasized in their letters made before 2017, the taxpayers could form a tax credit on the basis of invoices for services which value to be determined by the performance of meters. But as regards water supplies, there is considerable controversy. Thus, sub-para.14.1.191 of TCU interprets the water supply as the supply of goods. In addition, controllers also interpret it as a supply of goods in the Guidelines of conditional codes of goods of foreign economic activity of water supply. Finally, water suppliers use the cash method (para.44 of sub-sec.2 of sec. XX of TCU), so it is risky to form a tax credit without actual payment.
So, it is better to obtain individual consultations from representatives of fiscal agency on this issue.
The State Fiscal Service of Ukraine in its letter “On recognition of the service cooperative as the taxpayer and taxation of the transactions on transfer of property rights” of 28.03.17 No. 6311/6/99-99-15-02-02-15 informs: if the service cooperative meets the requirements set for non-profit organizations by sub-paras.133.4.1 of the Tax Code of Ukraine (hereinafter – TCU), the cooperative is not the payer of the income tax.
Representatives of fiscal agency additionally note: if a person carries out transactions for the supply of goods/services within the customs territory of Ukraine, which are subject to value added tax (hereinafter − VAT), total amount of which exceeds UAH 1 million during the last 12 calendar months, such a person must register as a VAT payer in a mandatory manner.
The Ministry of Finance of Ukraine by its letter “On confirmation of the business transactions and on the right to a tax credit of VAT on the value of paid car repairing by insurance company” of 01.12.16 No. 31-11170-16-29/34246 supported the position of tax authorities on the right of the VAT payer to a tax credit of VAT on the value of paid car repairing by insurance company. Thus, the amount of input VAT should be reflected in the tax credit, but also it should be balance by its conventional tax liabilities under the rules of para. 198.5 of TCU, because the insurance company paid for the car repair but not the payer.
The Ministry of Finance probably considered the situation where the insurance company paid the money directly to the repair executor. In this case, the tax authorities denied to the VAT payers in the right to a tax credit. In particular, the answer of the same content is placed in category 101.14 ZIR.
The Cabinet of Ministers of Ukraine adopted a resolution “On Amendments to the Cabinet of Ministers of Ukraine of December 29, 2010 No. 1244” of 29.03.17 No. 192, which entered into force 31.03.17.
The document determined the following: if the tax debt arose as a result of non-payment of a monetary obligation and/or fines specified by taxpayer in a tax return or in adjusted calculation that to be submitted to the controlling authority within the determined term, collection of funds at the expense of cash belonging to such a taxpayer and/or funds from his/her bank accounts should be carried out by the decision of the head (his/her deputy or authorized person) supervisory authority without going to the court.
Tax debt should exceed UAH 5 million, and its delinquency is 90 calendar days following the last day of the deadline for its payment.
Corporate Income Tax
The State Fiscal Service of Ukraine in its letter “On the calculation of annual income for determining of tax (reporting) period of the income tax” of 05.04.17 No. 7102/6/99-99-15-02-02-15 explained for which period it is necessary to prepare declaration of income tax for payers who from the beginning or middle of the year moved from simplified taxation system to the general taxation system.
For such legal entities the tax period starts on the date of transition to the general system and ends December 31 of such year. That is, if the company in the second quarter moved to the general system, so it is necessary to accrue the income tax from the first day of the quarter and the last day of the year.
However, taxpayer submits financial statements for the first quarter and the reporting year together with the declaration.
At the same time if the amount of income of the payer for such period does not exceed UAH 20 million, the subject of taxation can be determined without adjusting the financial result for all the differences.
PIT and War Tax
The State Fiscal Service of Ukraine in its letter “On untargeted charitable assistance” of 07.04.17 No. 4945/Д/99-99-13-02-03-14 notes that untargeted charitable assistance provided by a benefactor − legal entity to family members of victims of participants of combat operations is not taxed only if it does not exceed UAH 2 240 (according to sub-para. 170.7.3 of TCU). The amount of excess of charitable assistance over specified size should be taxed by the income tax on general basis and withheld the war tax.
In accordance with sub-para.165.1.54 of TCU, the amount of charitable assistance provided by benefactors for the purposes and in the amounts defined in sub-para. 170.7.8 of TCU should not be included in the taxable income of the taxpayer. When the assistance is untargeted, sub-para.170.7.8 of TCU is not applied and such assistance should be taxed with the taking into account conditions specified by sub-para. 170.7.3 of TCU. At the same the taxpayer (assistance recipients) must file an annual tax return indicating the amount of received untargeted charitable assistance, if it exceeds the size limit − UAH 2 240.
The State Fiscal Service of Ukraine in its letter “On taxation of compensation for payment for the taxi services in business trip” of 28.03.17 No. 6366/6/99-99-13-02-03-15 noted: compensation of expenditures for taxis in a foreign business trip should not be the subject to taxation of the income tax and the war tax in the presence of supporting documents (sub-para. 170.9.1 of the Tax Code of Ukraine).
At the same time, it is said in the category 103.17 ZIR: “Expenditures on taxis incurred by the employee during business trip, both within Ukraine and abroad, are not the subject to mandatory refund, but if these costs were reimbursed to the employee under the decision of the head of the legal entity, the amount of such expenses will be considered as an additional benefit and be included in the total monthly (annual) taxable income of the taxpayer. Taxation of additional benefits is carried out at the rate of 18%”.
The State Fiscal Service of Ukraine in its letter “On payment of income to entrepreneurs from the occupied territory” of 31.03.17 No. 7121/10/26-15-13-01-12 reminded that according to sub-para.38.9 of sub-sec.10 of sec. XX of TCU during accrual of income to individuals, who temporarily live on occupied territory or residential areas located on the contact line, it is necessary to withhold the income tax from such incomes. Rule on Non-Withholding of income tax does not work in cases if individual entrepreneur provided a copy of the document confirming its state registration as Business Entity (para. 177.8 of TCU).
Similarly it is necessary to withhold the war tax from the income paid to individual entrepreneur who appears or is resident in the occupied territory.
Liability for withholding the tax income and the war tax should be imposed on the tax agent − a business entity or self-employed person who pays income.
The State Fiscal Service of Ukraine in its letter “On taxation of inheritance” of 28.03.17 No. 4313/Б/99-99-13-02-03-14 emphasized that when determining the tax rate of property inherited by right of representation, it is necessary to start from level of relation degree with the person who owned the inherited property. For example, if in 2016 a granddaughter inherited her grandmother’s property under the right of representation of her deceased mother, the deviser should be considered the grandmother, not mother. Therefore, the rate of income tax − 5% rather than 0% and, in addition, it should be also paid 1.5% of the war tax. It also should be noted: on property inherited in 2017, the zero tax rates will apply in the event if the deviser is family member of the second-degree relatives (grandmother, grandfather, sister, brother, grandchild). However, as before, now the inheritance received by non-resident or from non-resident, should be taxed at a rate of 18%.
The State Fiscal Service of Ukraine in its letter “On taxation of cancelled debt” of 04.04.17 No.4706/Л/99-99-13-02-03-14 emphasized that in 2016 tax-free amount of the income for the cancelled debt should be determined under the norms were in effect until 01.01.17. Namely − in accordance with wording of sub-para.“д” of sub-para. 164.2.17 of the Tax Code of Ukraine (hereinafter − TCU), which established such a size of 50% of the minimum wage as of January 1 of the reporting year. Thus, the non-taxable amount of forgiven debt for 2016 is UAH 689.
For debt cancelled in 2017, non-taxable amount is 25% of the minimum wage on January 1, that is UAH 800.
Unified Social Contribution
The State Fiscal Service of Ukraine in its letter “On the practical application of paragraph 45 subsection 2 of section XX of TCU and on personal income taxation under the terms of a single civil law contract” of 03.03.17 No. 4482/6/99-99-15-03-02-15 reported that the obligation to accrue the unified contribution applied not to all rewards under the civil law contract accrued for the benefit of individuals, but only to those providing execution of works or services provision. Furthermore, if the individual counterparty is private entrepreneur and receives a remuneration within his/her business, the unified contribution should not be accrued (para.1 of sec.1 of Art.4 of the Law of Ukraine “On the collection and accounting of the unified contribution for obligatory state social insurance” of 08.07.10 No.2464-VI).
In addition, fiscal agency described the VAT consequences in a situation where a VAT payer in the application of privileged taxation regime, as defined in para.45 of sub-sec.2 of sec. XX of TCU, acquires services related to the delivery, loading and unloading of coal, for individuals − VAT payers. According to the explanation tax authorities, due to the fact that such services are purchased for use in transactions exempt, it is necessary to accrue tax liabilities on the cost of such services and make consolidated tax invoice no later than the last day of the reporting (tax) period in accordance to para. 198.5 of TCU, since the acquisition was carried out with VAT during the application of the privileged taxation regime.
Accounting and Reporting
The State Fiscal Service of Ukraine in its letter “On accrual of depreciation and entry in the books of fixed assets” of 31.03.17 No. 7136/10/26-15-12-05-11 noted that fixed assets which evacuated from the ATO zone and “Crimea” FEZ, should be accounted for as assets of the company. The fixed assets transported from the temporarily occupied territory of Ukraine are exempt from any tax (including import duties). Accordingly, the amount of unpaid taxes are considered to be a tax privileges and included in the report of the amount of tax benefits.
Documentarily confirmed expenses associated with evacuation of fixed assets and all it amortization can be included in expenditures with the purpose of the income tax imposition.
The State Fiscal Service of Ukraine in its letter “On classification of acquisition costs of fuels and lubricants, which are used for refuel of own cars of workers while performing their work duties, to the cost of sales” of 07.04.17 No. 7308/6/99-99-15-02-02-15 states that sec.III of the Tax Code of Ukraine (hereinafter − TCU) does not provide for the adjustment of financial result before tax on the difference of the purchase of fuel and lubricants, are used for refuel of own cars of workers while performing their work duties.
The State Fiscal Service of Ukraine by its Order “On approval of the State Register of settlement transaction registers” of 20.04.17 No. 275 approved a new State register of settlement transaction registers (hereinafter − the State Register of cash registers). Therefore, we recommend checking your model of cash registers in the updated version of the State Register.
The representatives of fiscal agency traditionally divided the fiscal cash registers into two groups in the updated list: cash registers, permitted to primary registration (79 models), and cash registers, the initial registration of which is prohibited (33 models). Also, it is noted in it the models of cash registers, which operation is not allowed due to their removal from the State Register of cash registers in 2016-2017.
The Ministry of Finance of Ukraine by its order “On approval of amendments to the Ministry of Finance of Ukraine on June 19, 2015 No.578” of 17.03.17 No. 369 approved the amendments to the form of declarations of payers of the unified tax. These amendments are point in nature and aimed at harmonization of appropriate forms with current legislation.
It is set out in the new version the lines that include tax rates (due to changes in the latter), thus, in particular, in the form of declarations of unified tax payers − individuals as well as the tax payers - legal entities.
The Cabinet of Ministers of Ukraine by its Resolution “On amendments to the Procedure of writing off the state property” of 29.03.17 No. 199 changed the rules for writing off the state property, which are the objects of uncompleted construction (unfinished capital investments in non-current assets), tangible assets (fixed assets, other non-current assets).
In particular, it was twice increased the threshold of the original (revalued) cost of fully depreciated fixed assets, other non-current tangible assets of economic entities when they can be written off by the decision of the head of the economic entity. Now it will be UAH 20 thousand.
The property, detected as deficit due to inventory, should be written off with its further reflection in accounting to the procedure established by the Ministry of Finance of Ukraine.
The fixed assets, obtained as a result of property writing off, should be entered with the reflection of fixed assets on the accounts of accounting.
It was changed the criteria for the state property that can be transferred to local authorities with further assigning to relevant institutions, establishments and organizations. Now it should be outdated and worn property suitable for further use. It should be recalled: earlier it was allowed to transfer outdated computer equipment.
Control and Responsibility
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated December 25, 2015 No. 1133” of 29.03.17, No. 217 established amount of payment for the state registration changes in the information contained in the Unified State Register of legal entities, individuals − entrepreneurs and community groups in reduced time. In particular, double amount of administrative fee should be paid for the appropriate registration:
- within two business days − for the state registration of changes to information about community groups, local branch of the public association with the status of legal entity, other than amendments to information about communicating with legal entity;
- within seven business days − for the state registration of changes to information about structural formation of political parties as legal entities, other than amendments to information about communicating with legal entity;
- within 10 working days − for the state registration of changes to information about organization of employers, their union as a legal entity, other than amendments to information about communicating with legal entity;
- within 20 working days – for the state registration of changes to information about political parties, creative union, local branch of the creative union as a legal entity, other than amendments to information about communicating with legal entity.
Five-time administrative fee amount should be paid:
- within 24 hours − for the state registration of changes to information about community groups, local branch of the public association with the status of legal entity, other than amendments to information about communicating with legal entity;
- within five working days − for the state registration of changes to information about structural formation of political parties as legal entities, other than amendments to information about communicating with legal entity;
- within seven working days − for the state registration of changes to information about organization of employers, their union as a legal entity, other than amendments to information about communicating with legal entity;
- within 15 working days − for the state registration of changes to information about political parties, creative union, local branch of the creative union as a legal entity, other than amendments to information about communicating with legal entity.
Tenfold administrative fee amount should be paid to carry out the state registration of changes to information about political party legal entities during 15 working days.
The Cabinet of Ministers of Ukraine by its Resolution “On amendments to paragraph 4 of the Procedure of submission by the authorities of the statу registration of real estate property and authorities carrying out registration of residence of individuals, the information needed to calculate the tax on immovable property other than land” of 29.03.17 No. 219 provided an opportunity for representatives of fiscal authorities to receive information about real estate, ownership of which belongs to legal entities. This will tighten control over the accrual and payment of legal entities tax on immovable property other than land plot.
Consequently, the State Fiscal Service will receive information from the Ministry of Justice of Ukraine about:
- name of the legal entity and its tax number;
- address and type of property, its registration number;
- general and residential areas of immovable property;
- type of joint ownership (in the case when such property belongs on the right of joint ownership), the amount of share in joint ownership right (if such property belongs on the right joint partial property);
- grounds of ownership rights and date of state registration of ownership rights to immovable property.
The Ministry of Finance of Ukraine by its Order “On approval of the request form of the controlling authority for implementation counter reconciliation” of 28.02.17 No. 299 approved the request form controlling authority to conduct counter reconciliation.
It should be reminded that the counter reconciliation is to compare data received from payers and other subjects of information relations, with the aim of documentary evidence of economic relations with the taxpayer and fees and proof of relationship, type, volume and quality of transactions and calculations conducted between them to determine the completeness of their reflection in the accounting of the payer.
The Cabinet of Ministers of Ukraine by its Resolution “On approval of the Procedure of examination of constructed objects accepted for operation” of 12.04.17 No. 257 determined the mechanism of the procedure of examination of constructed projects accepted for operation in accordance with legislation.
Examination of the object is the a set of measures directed at determination and valuation of actual value of maintenance factors of building constructions, characteristics of foundations base, utility facilities and systems (except for technological equipment) that characterize the operational reliability of the object (including access for persons with disabilities and other people with limited mobility to built or renovated residential and public buildings).
Examination procedure of the object is provided by its owner or the manager through the involvement of responsible contractors of certain types of works (services) related to the creation of architectural objects, or enterprises, institutions or organizations, which include executors responsible for such work. Information on the executors can be found on the official website of the State Architectural and Construction Inspection of Ukraine.
The first examination should be carried out after the termination of warranty period, that is 10 years from the day of object acceptance by the customer (if longer warranty period provided by contract or law).
The object certification is to be prepared under the results of examination.
Labor and Salaries
The Cabinet of Ministers of Ukraine by its Resolution “On amendments to Annex 1 to the Resolution of the Cabinet of Ministers of Ukraine dated February 2, 2011 No.98” of 05.04.17 No. 241 increased the size of number of daily business trip expenses within Ukraine for civil servants and employees of enterprises, institutions and organizations that are wholly or partly supported (funded) at the expenses of the budget funds. Daily allowance will amount to UAH 60 (instead of UAH 30).
In addition, there will be significant increase in the marginal cost of the dwelling rent per day in Ukraine − UAH 600 (instead of UAH 250).
The Ministry of Social Policy of Ukraine in its letter “On draft Law of Ukraine “On amendments to some legislative acts of Ukraine concerning the settlement of administrative responsibility for violation of labor legislation” of 21.03.17 No. 800/0/101-17/283 did not support the initiative of legislators to reduce the penalty rate for violation of labor legislation. After all, if amount of the fine is less than the costs of employers for salary legal, the use of untitled works in this case becomes economically attractive. In general, as the Ministry of Social Policy notes, the adoption respective draft law (registered under No. 5711) significantly worsens the situation at the work sphere, contribute to shadowing wages, allows to employers to ignore the demands of the labor legislation, thereby worsening the social situation in the country.
The Social insurance fund for temporary disability (hereinafter – SIF for TD, Fund) in its letter “On assistance in connection with pregnancy and childbirth to individuals – entrepreneurs” of 21.12.16 No. 5.2-32-2287 that the entrepreneur will receive assistance and maternity leave under the following conditions:
- insured event (pregnancy) occurred when the individual was in the status of entrepreneur;
- the unified contribution was paid in proper time in size established by the law;
- application-calculation was submitted to the working body of the SIF for TD.
If the employer after the insured event (pregnancy) terminated his/her activity and did not submit the application-calculation to the Fund, assistance will be provided at the expense of the SIF for TD only for the period from the beginning of the insured event and to the termination of business activities.
The Fund argues its position that assistance in connection with pregnancy and childbirth is the compensation of lost income.
According to Art.26 of the Law of Ukraine “On Compulsory State Social Insurance” of 23.09.99 No. 1105-XIV assistance for pregnancy and childbirth is granted to individuals-entrepreneurs in the amount of 100% of the average income and does not depend on insurance.
The Cabinet of Ministers of Ukraine by its Resolution “Some issues of implementation of Article 259 of the Labor Code of Ukraine and Article 34 of the Law of Ukraine “On local government in Ukraine” of 26.04.17 No. 295 approved the document regulating verification of compliance with labor laws.
The main priorities of labor inspectors are preventive work and counselling of employers. It is also introduced the possibility of optional for employer the so-called audit of labor laws, and enforcement measures should be applied only if the employer refuses to eliminate violations of labor legislation
The Ministry of Finance of Ukraine in its letter “On business trips of civil servants” of 17.02.17 No. 31-08030-16-10/4511 reviewed the situation where employees of budget establishments or a civil servant on a business trip paid alone the cost of hotel accommodation through the bank and having paid banking commission. The competent authorities answered to the question whether it is necessary to compensate to the employee commission expenditure paid by him/her: reimbursement of expenses for the services of banks in connection with payment of hotel accommodation (motels), other premises to be not provided.
The Ministry of Social Policy of Ukraine in its letter “On minimum wages and labor remuneration for recording of total hours worked” of 21.02.17 No. 242/0/102-17/282 explained that in case of application of recording of total hours worked, the daily schedule and shift schedules should be built so that the working hours for reporting period corresponded to the legally established norm working hours accounted for by this period. The wages are to be accrued to the employees at the end of each month, it should be guided by the following:
- if all the working hours worked, the employee should be accrued and conduct the necessary additional payment to the minimum wage;
- additional payment for night work should be calculated over the size of the minimum wage;
- payment for overtime hours at a double rate should be held at the end of the accounting period, again over the size of the minimum wage.
It should be noted that under the summarized period, the accounting period can be not only a month, but decade (10 calendar days of the month), quarter, six months, a year, etc. (para. 6 of Guidelines on the application of the summarized accounting of working hours, approved by the Ministry of Labor and Social Policy of 19.04.06 No. 138). The Ministry of Social Policy does not explain how to determine the size of the additional payment to the level of minimum wages in this case.
At the same time it should be recalled that it is claimed the following in some explanations of the Ministry of Social Policy on the issues of remuneration for the implementation of the Law of Ukraine dated 06.12.16 No. 1774-VIII “On Amendments to Certain Legislative Acts of Ukraine” of 12.01.17: “If the work when the recording of total hours worked is to be performed within the established employee working hours, which is less than the normal working hours, according to schedule, he/she is accrued monthly fee of not less than the minimum wage”.
The State Service of Ukraine on Labor in its letter “On provision of workplaces with first aid kit” of 18.11.16 No. 11506/1/4.4-ДП-16 reports that the employer is obliged to provide the workplaces with the first aid kit. Because he/she should take immediate steps to provide first medical aid to victims in the event of emergencies and accidents in the company (para. 2.4 of sec. II of General of requirements regarding employers provision of the protection of workers, approved by the Ministry of Emergencies of Ukraine of 25.01.12 No. 67). Also, the law provides for that in the event of an accident, direct line manager must urgently organize First Aid Treatment for the injured party (para. 8 of the Procedure of investigation and keeping records of accidents, occupational diseases and emergency at work, approved by the Cabinet of Ministers of Ukraine of 30.11.11 No. 1232).
The State Service on Labor also notes that the legislation does not define the concept of the single term “first aid kit”. However, according to sources of the theory of medical science, the first aid kit is a set of medicines, tools and devices that are intended to provide first medical aid. Its content depends on the specifics of the company, and it should be determined by the employer, unless it is determined by separate regulations.
The Ministry of Social Policy of Ukraine by its Order “On establishment of the average cost of sanatorium vouchers for the payment of monetary compensation instead of sanatorium vouchers and the cost of independent sanatorium-resort therapy” of 27.03.17 No. 475 increased the average cost of sanatorium vouchers for the payment of financial compensation to UAH 440. This is the amount that will be receiveв by the disabled veterans and former minor prisoners of concentration camps recognized as disabled in case of refusal to free sanatorium-resort therapy. The voucher price for the payment of compensation was UAH 400 in 2016.
According to para.2 of the Procedure of the payment of monetary compensation for the cost of free sanatorium-resort therapy to some categories of citizens, approved by the Cabinet of Ministers of Ukraine of 17.06.04 No. 785, cash compensation should be paid once every two years in the following amounts:
- disabled people of groups I and II − 100% of the average cost of the voucher;
- disabled people of group III – 75% of the average value of the voucher.
Mobilization and ATO
The Cabinet of Ministers of Ukraine by its Resolution “On approval of the Procedure of granting the status of a child who suffered from military actions and armed conflicts” of 05.04.17 No. 268 determined procedure for granting the status of a child who suffered from military actions and armed conflicts. This status can be got by a kid who due to military operations and armed conflicts:
1) was injured, contused, wounded;
2) suffered from physical, sexual and psychological violence;
3) was kidnapped or illegal taken out of Ukraine;
4) was involved in the actions of paramilitary or armed groups;
5) illegally kept, including captive.
In order to obtain the status, the child’s legal representative (in the case when the child moves without the accompaniment of parents or persons, who act for them, his/her family, stepfather, stepmother, representatives of the guardianship and custody) should submit specified package of documents to Service on Children Affairs.
Financial Markets
The National Bank of Ukraine by its Resolution “On amendments to some legislative acts of the National Bank of Ukraine” of 13.04.17 No. 33 continued liberalization of currency regulation. In particular, the regulator allowed the repatriation of dividends not only for 2014-2015, as it was before, but for 2016.
The NBU also simplified mechanism for such payments: one entity (the issuer, the depository institution or foreign investors) will within one month to repatriate dividends over the years in total to USD 5 million.
In addition, the National Bank increased from USD 1 to 5 million the maximum amount of payment under import contracts not requiring the use of credit form payments (first-class bank confirmation).
The National Bank of Ukraine by its Resolution “On Amendments to the Resolution of the National Bank of Ukraine of December 13, 2016 No. 410” of 04.04.17 No. 30 weakened some temporary currency restrictions. In particular, it was eased the requirement for mandatory sale of revenues in foreign currency in Ukraine. Henceforth legal entities should sell 50% but not 65%, of their foreign exchange revenues.
In addition, now individuals can buy more foreign currency in cash per day. It should be reminded: hitherto people had the opportunity to buy the currency for an amount not more than UAH 12 thousand in an equivalent to one person per day. The National Bank increased this maximum amount to UAH 150 thousand, that is to amount above which financial cash transactions are subject to financial monitoring.
The National Bank of Ukraine in its letter “On the practical application of certain provisions of the regulations of the National Bank of Ukraine in the implementation of foreign exchange transactions” of 07.04.17 No.40-0005/26287 explain: restrictions on maximum amount cash payment (UAH 50 thousand per day with one person) do not apply to foreign exchange transactions carried out be the banks and financial institutions.
That is, as for transactions of sale of foreign currency in cash, or precious metals to one person during one operational (working) day within one bank/financial institution, the restriction on the amount not exceeding the equivalent of UAH 150 thousand is in effect.
Summary of Court Rulings
The Supreme Administrative Court of Ukraine by its decree of 01.02.17 No. К/9991/56935/12 tax consulting should not contradict other decisions (legal acts or legal acts of individual action) of the authorities. It is proved that they have no force of legal act, and in fact there is the position of the tax authority on the application of the law.
Tax consultation does not generate occurrence of any legal consequences for relevant entities, does not affect their rights and responsibilities and is not binding. The grounds for declaring invalid tax advice can only be a conflict of legal provisions or content of the tax or fee. In addition, the Tax Code of Ukraine does not provide for the right of the tax authority to cancel provided tax advice.
The Other Things
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Cabinet of Ministers of Ukraine of March 4, 2004 No. 257 and of April 14, 2004 No. 494” of 12.04.17 No. 248 brought their regulations into conformity with the Law of Ukraine “On higher education” and “On scientific and scientific and technological activities”: higher educational establishments to be identified by type (university, academy, institute), but not by the level of accreditation.
Thus, it was brought into conformity the names of the institutions, organizations, companies and positions in the list of positions of scientific (research and teaching) employees of agencies, organizations, businesses, higher educational establishments, being at which gives the right to pensions and cash benefits in case of retirement. In addition, the above list is supplemented by positions of research workers of scientific publishing and periodical scientific publications.
The President of Ukraine on its official website said that visa-free trips to the EU for ordinary Ukrainian became even closer, as COREPER (Committee of Permanent Representatives of the European Union) spoke in favour of granting visa-free regime for Ukraine.
Thus, there are several small steps to the desired visa-free trips to the European Union:
- adoption of a similar decision by the EU Council at the ministerial level;
- publication of the decision on granting to Ukraine visa-free regime and its entry into force on 21st day after publication.
