Taxes
Income tax
The Ministry of Revenue and Duties of Ukraine in its letter of 17.07.2014, № 17176/7 / 99-99-19-02-02-17 reported: monthly advances on income could be reduced by the advanced payments amounts in dividend payment.
The taxpayers are given the “green light” to reduce the amounts of monthly advanced payments to be paid in 2014, by the amounts of advances in dividend payment, which exceeded the income tax liabilities in 2013, as well as the installment amounts, paid in dividend payments in 2014.
The reduction of assessed amount of tax is reflected in Annex Salary, which total value is transferred to line 13 “The reduction of assessed amount of tax” of the income tax declaration.
The amount of assessed advance installment due to dividends payment, which is charged to reduce the assessed amount of tax and counted in determining of line 13 of Annex Salary value, is reflected in line 13.5.1 of Annex Salary.
It is useful for the taxpayer to submit with the application on entering of paid amounts of advance installment due to dividends payment in reduction of the amounts of monthly advanced payments of the income tax, which are subject to payment in 2014, to the local office of the Ministry of Revenues, where he is registered.
PIT
The Verkhovna Rada of Ukraine adopted the Law “On Amendments to the Tax Code of Ukraine and Certain Legislative acts of Ukraine on passive incomes” of 04.07.2014, № 1588-VII. The linear tax rate of individuals’ passive incomes as interests – 15% is provided by the Law.
The rates on royalties’ taxation, investment income and dividends are returned to the edition of the Tax Code of Ukraine (hereinafter – TCU) that was in force up tp July 1, 2014, and according to which such incomes are taxed at rates of 15 (17%) and 5% duly. In the taxation part of other passive incomes from capital allocation, the flat rate – 15% is introduced.
Also the TCU norms on the reassessment procedure of Individual Income Tax in case of early termination of the depositary contract and therefore implementation of income reassessment as interests are specified by the Law.
The amendments to the Budget Code of Ukraine are made also, according to them the income tax as interests, which are accrued on current deposit accounts of individuals, and opened in banks or credit unions, would be transferred to the State Budget.
The transitional provisions provide that the Individual Income Tax, which is withheld from passive income amounts for the period from 01.07.14 to 01.08.14, is liable for the cancellation and should not be paid to the budget.
The war tax
The President of Ukraine signed the Law “On Amendments to the Tax Code of Ukraine and certain other legislative acts of Ukraine”, which entered into the force on August 3, 2014.
Henceforth, a new National tax – the war tax is imposed, temporary, up to January 1, 2015. It would be withheld at 1,5% rate of individual incomes.
Also, the excise levy on tobacco products is increased by 5%; drinks, which are classified now as dietary foods and contain ethyl alcohol 8, 5% and more.
Up to January 1, 2015 the rents on iron ore is increased from 5% to 8%, oil – from 39% to 45%, the gas from reserves to 5 km – from 28% to 55%, the gas from reserves over 5 km – from 15% to 28%.
In addition, the “threshold” of compulsory registration of economic entity by VAT payer is going to be increased since November 1, 2014 – from UAH 300 thousands to UAH 1 million. At the same time, the regime of exemption of VAT taxation on export of grain and industrial crops is extended up to December 31, 2014 including.
Instead, the exemption of VAT taxation on timber supply, fuel wood and timber industry waste is abolished; the taxation at the “0” rate of common carrier services with high-speed trains Intercity + is abolished.
All the invoices are subject to the registration in the Unified register of tax invoices from the January 1, 2015, regardless of their amount, and the electronic administration system of value added tax is adopted from November 1, 2014.
Another innovation is the introduction of the calculation formula for VAT amount assessment, the taxpayer is entitled to issue the tax invoice for this amount.
The State Fiscal Service of Ukraine explained the issues on the responsibility of the tax agents if they haven’t charged, haven’t withheld and/or haven’t paid (failure to transfer) the war tax.
The financial liability to a fine of 25% of tax amount to be charged and/or paid to the budget is provided for the mentioned violation, according to p.127.1 of the Tax Code of Ukraine. When further violation during 1095 days the fine will be 50%, for the third time -75% of tax amount to be charged and/or paid to the budget.
The penalty tax is charged to the mentioned amount on the basis of 120% per annum of the NBU discount rate that is current at the day of incomes payment (charging) in favor of the taxpayers-individuals.
In addition, the administrative fine in the amount of 34 to 51 UAH is imposed on officials of the companies, institutions and organizations as well as on the entrepreneurs.
The State Fiscal Service of Ukraine in its letter of 21.07.14 . № 25/6/99-99-22-06-03-15/415 reported that cash restriction of 150 thousand is applied to the reimbursable financial assistance.
As it is known, the enterprises (entrepreneurs) are entitled to settle in cash with the individual within 150 thousand UAH for one day by one or several payment documents.
According to the financials, the restrictions are applied not only to payments for goods, works and services. They noted that the subjects to be restricted are:
- transaction settlement, which subjects are any tangible and intangible benefits that could be valued in monetary terms;
- settlements under the contracts;
- granting of loan or loan repayment, including payments and reimbursable financial assistance.
The State Fiscal Service of Ukraine explained that the amount of received maternity grant is not related to the subject of imposition of war tax.
There are no any reasons for withholding of war tax, because the maternity is not related to the payroll budget (pp.3.2 Wage statistics instructions, approved by the Order of the State Statistic Committee of Ukraine of 13.01.04, № 5).
Let us recall, the maternity grant is paid due to the fact of woman being in labor relationships with the company. And the Tax Code of Ukraine does not provide the exemption for these amounts. Therefore, we can conclude that it is the subject to the war tax.
The President of Ukraine signed the Law“On Amendments to the Tax Code of Ukraine and certain other legislative acts of Ukraine”, which entered into the force on August 3, 2014.
Henceforth, a new National tax– the war tax is imposed, temporary, up to January 1, 2015. It would be withheld at 1,5% rate of individual incomes.
Also, the excise levy on tobacco products is increased by 5%; drinks, which are classified now as dietary foods and contain ethyl alcohol 8, 5% and more.
Up to January 1, 2015 the rents on iron ore is increased from 5% to 8%, oil – from 39% to 45%, the gas from reserves to 5 km – from 28% to 55%, the gas from reserves over 5 km – from 15% to 28%.
In addition, the “threshold” of compulsory registration of economic entity by VAT payer is going to be increased since November 1, 2014 – from UAH 300 thousands to UAH 1 million. At the same time, the regime of exemption of VAT taxation on export of grain and industrial crops is extended up to December 31, 2014 including.
Instead, the exemption of VAT taxation on timber supply, fuel wood and timber industry waste is abolished; the taxation at the “0” rate of common carrier services with high-speed trains Intercity + is abolished.
All the invoices are subject to the registration in the Unified register of tax invoices from the January 1, 2015, regardless of their amount, and the electronic administration system of value added tax is adopted from November 1, 2014.
Another innovation is the introduction of the calculation formula for VAT amount assessment, the taxpayer is entitled to issue the tax invoice for this amount.
Unified Social Contribution
The Cabinet of the Ministers of Ukraine by the Resolution “On amending the procedure of assessment and payment of Single fee for obligatory state social insurance for certain categories of insured persons” of 13.08.14, № 335 brought the procedure of assessment and payment of Single fee for obligatory state social insurance for certain categories of insured persons, approved by the Cabinet of Ministers of 02.03.11, № 178, in line with the Law of Ukraine “On collection and accounting of the single fee for obligatory state social insurance” of 08.07.10, № 2464-VI.
The government officials clarified that the Single fee for basic accounting month is accrued on the amount of nursing aid until the child reaches three years of age and/or maternity grant. At that, the single fee is not accrued on the amount of benefit, which is once paid.
Mobilization
The Cabinet of Ministers of Ukraine by its Resolution “Customs clearance issues of cargo execution of humanitarian aid” of 15.08.2014, № 347 determined that during ATO the humanitarian aid should be allowed under the simplified regime.
The passing through the customs border of Ukraine, declaration and custom registration of humanitarian goods supplied by the International Red Cross Committee, the World Health Organization, the North Atlantic Treaty Organization (NATO), the United Nations organization, are carried out at the place of crossing the customs border of Ukraine by means of submission of accompanied documentation without the use of non-tariff regulation of foreign economic activity, during the ATO.
Whereas, some provisions of the procedure of customs clearance of cargoes of humanitarian aid are not applied. In particular, the humanitarian cargo should not pass the sanitary control, veterinary checks, phytosanitary control, radiological control and ecological monitoring.
The Ministry of Revenues and Duties of Ukraine reported in the document “Current information for taxpayers who move from temporarily occupied territories and ATO areas” of 07.08.14, that the registration of business entities, registered in the Crimea, is valid.
However, after the Law becomes effective, the persons with location in Crimea/place of residence should be considered as non-residents by the Law of Ukraine “On taxation and customs control in free trade zone of the Crimea and peculiarities of economic activity implementation in the temporarily occupied territory of Ukraine” (19.06.14 it’s been passed on its first reading, for today, according to the website of the VRU, it is amended). So, these persons pay taxes in order provided for the non-residents.
Therefore, if the legal entity or individual wishes to be re-registered on the mainland before the enactment of the Law, the person should submit the relevant documents to the registration services determined by the Order of the Ministry of Justice. The documents could be submitted in person, mailed or sent via authorized representatives the registration card for the carrying out the changes by the state registration (with the document confirming payment of the registration fee).
The Cabinet of Ministers of Ukraine determined by the Resolution “On amendments to paragraph 6 of the resolution of the Cabinet of Ministers of Ukraine dated February 2, 2011, № 98” of 20.08.14, № 366 that the tour of duty term should not exceed the time frame of such activities for the military servicemen, persons in the rank and file and commanding officers and for personnel, which were sent for participation in ATO since 14.04.14 within Ukraine as well as for enforcement of the law at the state borders.
Previously, the total military obligation within Ukraine - 30 calendar days for state employees was spread for mentioned persons.
We remind that the absence of an employee at work in ATO area is not considered to be neither work stoppages nor truancy.
The Ministry of Justice and the State Service of Special Communication of Ukraine by the joint decree “On the approval of the Interim procedure of simplified identification of legal entities by the accredited keys certification centers” of 11.08.14, № 1312/5/377 resolved that the legal entities from Donetsk and Luhansk regions, who lost their basic documents, will be able to receive the public key of electronic digital signature under the simplified procedure. The accredited keys certification centers should conduct a simplified identification for such persons.
The legal entity should be identified according to the Unified State Register information (data from official web-site of the Register is enough). And the individual, appealing to the key certification center, is identified according to the passport or other documents, which exclude the possibility of any doubts as to the identity of the citizen, in particular according to the passport of citizen of Ukraine for leaving abroad, diplomatic or business passport, residence permit of the person who lives in Ukraine, foreigner national passport or the document in lieu it.
Temporarily occupied territories
The Ministry of Revenues and Duties of Ukraine by its letter “On payment of real property tax, different from the land property, which situated in AR Crimea and Sevastopol city” of 27.06.14, № 11671/6/99-99-17-04-15, clarified how the individuals should pay the real property tax for residential facilities in the Crimea.
Due to the fact that AR Crimea and Sevastopol city are the occupied territories, the experts of the Ministry of Revenues of Ukraine recommend to the real estate owners at these territories to pay the real property tax to the local budget at the place of tax address of an individual, viz. the registration place (residence) of owner.
This procedure is established to the final settlement payments of local taxes in the Crimea and Sevastopol. The account information and banking instructions for the remittance of real property tax is posted on the official website of Ministry of Revenues of Ukraine (the present day - the State Fiscal Service of Ukraine).
The Ministry of Revenues and Duties of Ukraine reported in the document “Current information for taxpayers who move from temporarily occupied territories and ATO areas” of 07.08.14, that the registration of business entities, registered in the Crimea, is valid.
However, after the Law becomes effective, the persons with location in Crimea/place of residence should be considered as non-residents by the Law of Ukraine “On taxation and customs control in free trade zone of the Crimea and peculiarities of economic activity implementation in the temporarily occupied territory of Ukraine” (19.06.14 it’s been passed on its first reading, for today, according to the website of the VRU, it is amended). So, these persons pay taxes in order provided for the non-residents.
Therefore, if the legal entity or individual wishes to be re-registered on the mainland before the enactment of the Law, the person should submit the relevant documents to the registration services determined by the Order of the Ministry of Justice. The documents could be submitted in person, mailed or sent via authorized representatives the registration card for the carrying out the changes by the state registration (with the document confirming payment of the registration fee).
Control and responsibility
The Regulation on the State Financial Inspection of Ukraine is approved by the Resolution of the Cabinet of Ministers of Ukraine of 06.08.2014, № 310.
The document determined that the State Financial Inspection of Ukraine is the central executive authority, whose activities are directed and coordinated by the Cabinet of Ministers of Ukraine through the Minister of Finance, and which implements the public policy of state financial control.
The primary objectives of the State Financial Inspection of Ukraine are:
1) implementation of the public policy of state financial control;
2) introduction of proposals on providing of public policy development in mentioned field for the Minister of Finance consideration.
The primary function of the State Financial Inspection is financial control of:
- the use and preservation of state financial resources;
- compliance with public procurement legislation;
- activities of business entities irrespective of their form of ownership that don’t belong to controlled agencies by a court decision;
- performing of functions on state property management and others.
The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine to limit the interference with activity of business entities” of 22.07.14, № 1600-VII. The Law limits the interference of government supervision (control) authorities with business entities activity.
Henceforth, it is prohibited to carry out the inspections of business entities on anonymous and other unfounded statements.
It is forbidden to carry out the measures of government supervision (control) by different controlling bodies on the same subject.
In addition, the conducting more than one scheduled inspection for one year on one business entity is vetoed. But, if it is necessary, the conducting of one comprehensive inspection by several controlling bodies is possible.
The State supervisory bodies have no right to suppress the original business documents, accounting records and other documents of business entities as well as computers, computers’ parts, except cases which are provided for by the criminal procedural legislation.
Moreover, if the executive officer or official of state supervisory body by their unlawful decisions, actions or inactivity caused the damage to the individual or legal entity, it should be reimbursed at the expense of corresponding budgets provided for the funding of this body, regardless of culpability of such officer or official body.
The implementation plan of state supervision (control) should be released on official websites of state supervisory body (control) not later than 10 days prior to the start of relevant schedule date.
Also, the amendments to the Administrative Violations Code regarding the additional administrative responsibility of the officials of state supervisory body (control) are made.
The Ministry of Social Policy, the Ministry of Finance and the Ministry of Justice of Ukraine expanded the list of grounds for subsidies refund by the Order “On Amendments to the Procedure of overpaid refunds for granted subsidies” of 18.07.14, № 479/763/1157/5.
The procedure of refunds, overpaid granted subsidies has changed significantly. In particular, the citizen should return the overpaid subsidies not only if he responsible submitted documents with wrong information about himself (hidden or other income, false documents), but also about all the other registered persons in residential room (house).
The overpaid subsidies should be returned, if the false information was given to the legal entities (incomes certificate, the list of registered persons, housing per capita and building services) or to the Individual-entrepreneur (incomes certificate). Earlier the false certificates, issued to the legal entities, were of such basis.
In addition, there is a new reason for overpaid subsidies refund. Such as determined hidden information that the new home owner has become another person who was not registered there on the first of the months when the subsidies were granted.
The received overpaid subsidies in previous budgetary periods should be returned to the State budget. The overpaid funds of the current year are to be returned to the social welfare bodies’ account.
Accounting and reporting
The Ministry of Finance of Ukraine made amendments to Ukrainian Accounting Standards (UAS) 21 “Effects of Changing in Foreign Exchange Rates” by the Order “On Amendments to certain regulatory legal acts of the Ministry of Finance of Ukraine on the Accounting” of 14.07.14, № 754.
Let us recall, the National Bank sets a new exchange rate in the current working day since 04.04.14.
Consequently:
Unveiling of exchange rate by the National Bank is brought into line with the current realities by UAS 21 “Effects of Changing in Foreign Exchange Rates”. Thus, foreign-exchange transactions should be reflected in national currency at the rate of the day beginning of the transaction date (date of asset initial recognition, liabilities, shareholders' equity, incomes and expenses).
The transactions on cashless payments in foreign currency can be reflected in reporting currency by the company. It is reflected in the amount specified in the bank’s documents, by reference to specific features its exchange rate use as on transaction date.
At the same time, the balance, on monetary items in foreign currency at the balance sheet date for currency differences determination, should be recalculated at the rate established at the end of this date.
Also, by the changes to the specified standard, the Ministry of Finance of Ukraine allows the recalculating of the currency differences at the date of business transactions not only within it, but also on the entire monetary item (depending on the chosen accounting policies).
Recall, that as consistent with Art. 153.1.1 of the TCU, the currency differences determination of the transaction recalculation in the tax accounting, which denominated in foreign exchange and in the debts, is executed in accordance with the specified standard.
In addition, the Ministry of Finance of Ukraine makes a number of amendments to the Annexes 1, 2 of UAS 25 “Financial Report of the small enterprise entity” and to the Ex.5 Annex 2 of UAS 31 “Financial expenses”.
Procurement
The Ministry of Economic Development and Trade of Ukraine in its letter of 04.08.2014, № 3302-05/26720-03 explained how the tenderer should confirm that it is not a bankrupt.
The customer has a right to establish in the competitive tendering documents the claim to provide for the participants of the procurement procedure in sentences of competitive tendering the certificate that the legal entity is not in the process of bankruptcy case as well as the extract from the Unified State Register of legal entities and individuals –entrepreneurs (hereinafter – extract). The extract may include data that the legal entity is in the process of bankruptcy case.
Besides, the Ministry of Justice set out its opinion in the letter of 21.07.2014, № 13.2-26/579, both the certificate and the extract (in case of affixing of appropriate mark) include identical information about the existence/nonexistence of initiated bankruptcy proceedings concerning the business entity.
If the claim to provide the certificate and the extract is imposed by customer in the competitive tendering documents and the sentence of competitive tendering includes only the extract nonexistence of bankruptcy proceedings, the sentence of such participant is eligible to the consideration and evaluation, but only if there are no other basis for the rejection provided for by Art.29 of the Procurement Law.
Thus, the customer reaches the decision on the rejection to the participant and is obliged to reject the competitive tendering proposals of such participant in case of fact-finding that the participant or the preliminary qualification participant is recognized as a bankrupt in accordance with the Law and the liquidation procedure is opened regarding him.
Labour and salaries
State Service of Mining Supervision and Industrial Safety of Ukraine in its letter of 21.07.2014, № 5640/0/5.2-09/6/14 explained how to investigate an accident, if the employee is injured while working in the ATO area.
The State Service of Mining Supervision and Industrial Safety considers that accident inquiry committee should take formal notes in due form H-5 and H-1 at the employees injured in ATO area, in case of confirmation of performance their labor (official) duties in the interests of the companies and the failure to military work without competent authorities conclusions.
During the taking this formal notes the commissions are requested to specify the type of the accident – the code “23”, and the accident causes – the code “33”.
The type of the accident is classified either as “Traumatizing (murder) due to warfighting of the opposite sides” or “Traumatizing (murder) due to temporary stay in the combat zone not providing military works”.
The accident causes should be specified with the following formulation: “Warfighting” or “Temporary stay in the combat zone not providing military works”.
The Ukrainian Obligatory State Social Insurance Fund for Unemployment Cases by the government Resolution “On Amending Resolution of the executive Direction of Ukrainian Obligatory State Insurance Fund for Unemployment Cases of April 12, 2012, № 327” of 23.07.14, № 12, increased the minimum unemployment payment of insured persons by its decision. Since September 1, 2014 the minimum unemployment payment for persons, who have more than 6 months of pensionable service for the last 12 months before the call to employment bureau, is 80% of living minimum wage of able-bodied persons.
This year, the minimum unemployment payment for such unemployed would be 974 UAH (before – 937 UAH).
The Regulation enters into the force from the day of its official publication and is applied from 01.09.14.
The Pension Fund of Ukraine in its Resolution “On Amendments to the Procedure for the submission and processing of documents for award (reassessment) of pension according to the Law of Ukraine “On Mandatory State Pension Insurance” of 07.07.14, № 13-1 posted in a new edition the Procedure for the submission and processing of documents for award (reassessment) of pension according to the Law of Ukraine “On Mandatory State Pension Insurance” approved by the PFU of 25.11.05, № 22-1.
In general, the list of the documents is leaved without essential adjustment. The expanded list of people who may apply for a pension of a minor is among the obvious innovations. Thenceforth, parents or guardians (trustees) as well as adoptive parents, parents-educators, foster-parents and foster carer may submit this application.
In addition, these changes provide that Ukrainian citizen who lives in the Crimea and doesn’t receive pension of the Russian Federation should apply for a pension to the authorities determined by the resolution of PFU management of 07.07.14, № 13-4. The application can be submitted through the representative, acting under the power of attorney (this power of attorney should be notarized), legal representative or send by mail to these pension authorities. The document of authorized body of the Russian Federation of the fact that the person didn’t receive the pension at place of residence in the Crimea should be added to the application.
The application of pension payment and updated form of certificate for pension assessment are posted in the new edition.
Financial services market
The National Bank of Ukraine by its Order of 06.08.2014, № 466 suspended the transactions in populated areas, which were not controlled by Ukrainian authority.
The non-bank institutions and Ukrposhta must suspend the transactions for receiving/payment of transfers from/to uncontrolled areas.
The mentioned above institutions, after the transition of the populated area under the Ukrainian authority control, should assume the emergency measures for renewal of suspended financial transactions.
The banks are entitled to provide services to the customers through the mobile service means till the complete renewal of activities.
The National Bank of Ukraine in its letter “On assessment of maturity date of export and import transactions” of 18.07.14, № 29-207/38389, reminded that it is entitled to establish, up to 6 months, separate terms of earnings deposit in foreign currency to the residents’ accounts in banks on export operations and postponement of goods delivery on import transactions. As you know, the generally accepted maturity date of such transactions is 180 calendar days.
Due to this the corresponding regulations of the NBU were adopted. The 90-day maturity date was established by those regulations. Their effect is applied to the periods of 20.11.13 to 17.05.14 and from 20.05.14 to 20.08.14 respectively.
And during May 18 and May 19, 2014, none of the regulations came into force, because the settlement term of export and import transactions was 180 days.
The National Bank of Ukraine resolved that the separate bank account should be for the wages and welfare payments by the Resolution “On Amendments to the Regulation on the procedure for opening, using and closing of accounts in native and foreign currencies” of 18.08.14, № 499.
The bank should open the current account, if it hasn’t been opened yet for these purposes, for wages payment, study grand payment, pensions, welfare benefits and other statutory welfare payments.
The client is obliged to note, in line “Additional information” of the application for opening that this account will be exclusively for transferring to the account of mentioned payments. For active current account this information should be determined in the Supplementary Agreement to the bank account.
The mentioned changes are oriented to distinguish the listed payments. According to pp.164.2.8 of the Tax Code of Ukraine, the interests on the current banks accounts of individuals are to be separately taxed. However, these very funds on these accounts are not the subject of this provision effect. The funds received as the wages, study grant, pension, welfare benefits and other statutory welfare payments.
Valuation
The Cabinet of Ministers of Ukraine approved the new rules for valuation of property for taxation purposes as well as for accrual and payment of other obligatory payments by the Resolution “On valuation of property for taxation purposes as well as for accrual and payment of other obligatory payments, which are executed in accordance with the Law” of 21.08.14, № 358. The value of property is considered to be its market value, calculated due to the national standards and other regulatory legal acts of valuation of property and property regulations according to the document. The estimating entities should conduct such valuation:
1) in land valuation sphere, which have met the requirements of the Law of Ukraine “On lands valuation” of 11.12.03, № 1378-IV;
2) those who have met the requirements of the Law of Ukraine “On valuation of property, property regulations and qualified valuation activities in Ukraine” of 12.07.01, № 2658-III and with the following membership where at least one assessor works with qualification certificate by one of these specialization within areas 1 “Valuation of subjects in a tangible form” and 2 “Valuation of integral property complexes, shares, securities, property regulations and intangible assets, including rights to the intellectual property items”.
The State Property Fund of Ukraine during 10 business days provides free access to common database of valuation report for entering the information contained in valuation report, at the written request of the valuation expert.
In fact, the State Property Fund was put in to provide unimpeded and free access to the information contained in common database on valuation reports, estimating entities, notary officers, regulatory authorities and other entities (subject to the requirements specified by the Law of Ukraine “On Protection of Personal data” of 01.06.10, № 2297-VI).
The document denounced the Resolution of the Cabinet of Ministers of Ukraine “Some issues on valuation of property for taxation purposes as well as for accrual and payment of other obligatory payments, which are executed in accordance with the Law” of 04.03.13, № 231.
Other things
The President of Ukraine signed the Law of Ukraine “On Amendments to the Law of Ukraine “On State Budget of Ukraine for 2014” of 31.07.14, № 1622-VII. The revenues and expenditures parts are adjusted in the State estimate, and the limits of expenditures of Social Insurance Fund for temporary disability and Social Insurance Fund for Unemployment are enshrined.
It should be added that before the end of the ATO, the monthly wages are charged only in the position salary amount for the Cabinet of Ministers of Ukraine members, heads of central executive bodies and other government agencies (except for agencies, which departments are involved in ATO conducting) as well as for people’s Deputies. The Cabinet is instructed to approve the special indexation procedure of population incomes within the financial resources of all levels budgets, the budget of the Pension Fund of Ukraine and the budges of other funds of obligatory state social insurance for 2014. The heads of central executive bodies, which carry out control and monitoring in the relevant sectors, are entrusted to optimize the number of authorized staff size as well as to provide the unpaid leave to the employees, to establish the working system for them under part-time work conditions. At that the incentive payments and the position salary raising should be either reduced, or even canceled. At the same time, these heads are authorized to establish the working system under part-time work conditions and provide the unpaid leave to the employees without their consent and notice. The manager determines the duration of the leave on the basis of budget allocations.
Besides, the Parliament authorized the Cabinet to determine the procedure of providing benefits and compensations independently, within available financial resources.
The Verkhovna Rada of Ukraine adopted the Law “On state aid to the business entities” of 01.07.2014, № 1555-VII, according to which the Antimonopoly Committee would inspect the business entities that have received the state aid.
The force of Law applies to any maintaining of business entities financed by the State or the local resources for goods production or certain types of business activity.
The aid, for purposes of this law, is understood to be the transfer of state resources or the local resources to the separate business entities, and this creates conditions for defacement of economic competition as well as loss of income of the relevant budgets.
The subject to inspection is the state aid, which is provided in subsidies forms and grants, donations, tax advantages, deferral or installment of taxes payment, duties or other compulsory payments, debts forgiveness, including debts for provided state services, penal sanctions cancellation, loss compensation for business entities etc.
The Law comes into effect after three years of its publication day, except for the part two of Art.6, part 1 and paragraphs 6-10 of part two of Art.8, part two of Art.14, which enter into the force from the next day of its publication.
The Ministry of Justice of Ukraine adjusted the Procedure for the state electronic registration of legal entities. The Order is issued in August 5, 2014; the procedure for the state electronic registration of legal entities is improved by this Order. For this purpose, the Ministry of Justice introduced the concept of “electronic stamp of state registrar on carrying out of the state registration of the legal entity”.
The stamp is understood to be an electronic document, which is an integral part of notarized statutory documents by the state registrar electronic digital signature and includes the information on the carrying out of the state registration of the legal entities, specified in the stamp description for marking the statutory documents by the state registrar during the registration.
The Norm comes into effect after the six months of the Order publication.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure of state registration of the rights on real estate property” of 13.08.14, № 337 defined the specifics of real property registration, built before 05.08.92. The registration process is simplified.
Thus, a person who wishes to register the property rights (with issuing of a certificate) to residential buildings, gardens, summer cottages, buildings and structures and their annexes, which are built on the territory of village councils before 05.08.92, it’s enough to have personal accounts in their rural household registers.
To conduct this registration the applicant provides:
- document that certifies the origin, transfer and termination of real rights to land (it may be, in particular, the decision of village council);
- extract from the rural household register;
If there are not any technical characteristics in the rural household register – the technical passport on the real estate should be submitted.
In addition, the Cabinet of Ministers of Ukraine amended the procedure of state registration of ownership right to newly built (reconstructed) real estate project, which construction was carried out including individuals and legal entities finance.
The fact is that the documents, submitted by the person who employed funds, are returned to the person after the posting of their electronic copies in the State Register of rights.
The Cabinet of Ministers of Ukraine in its Resolution “On approval of the list of state price regulation defining periods of such regulation in 2014-2015” of 20.08.14, № 361 established the list of agricultural products that get under state price regulation. Thus, the state price regulation in 2014-2015 should be applied to:
- soft wheat, rye, barley, buckwheat, wheat-flour and rye flour – from 01.09.14 to 31.08.15;
- corn − from 01.10.14 to 30.09.15;
- sand sugar (beet) − from 01.09.14 to 31.08.15;
- milk-powder and sweet butter − from 01.09.14 to 31.12.14.
