Taxes
Value Added Tax
The President of Ukraine has signed the Law of Ukraine 'On Amendments to the Tax Code of Ukraine on the rates of certain taxes' of 19.12.2013 № 713-VII, which entered into force on 1st January 2014.
VAT rate in 2014 remained at the same level - 20%. From January next year it will fall to 17%.
Exemption from VAT on domestic deliveries operations and export of cereals commodity positions 1001 - 1008 by УКТ ВЭД and industrial crops of commodity positions 125 and 1206 by УКТ ВЭД (excluding delivery and export directly to producers of these crops and the first customers) become termless. Exception - cereal positions of 1006 and 1008 10 00 00. They are taxed in general order.
The Ministry of Revenue and Duties of Ukraine by its Order of 30.12.2013 № 891 approved the Guidelines on application of the criteria in case of compliance with which VAT payer is considered with a positive tax history.
One of the conditions for assigning tax story positive status is compliance with criteria established by paragraph 200.19 TCU (in case of submission of tax declarations and refund of budgetary compensation, reflected in such declaration).
Despite the fact that the calculation of compliance with the criteria, established by paragraph 200.19 TCU, offered only if the declaration of the amount of budgetary compensation in line 23.1 of the VAT declaration, the payer is considered with a positive tax history not only for the declaration of the amount of budgetary compensation in the current account in the bank in each of the 36 consecutive months previous, if at least one of the 36 consecutive months of the previous declaration provides other indices of declaration.
Income Tax
The President of Ukraine has signed the Law of Ukraine 'On Amendments to the Tax Code of Ukraine on the rates of certain taxes' of 19.12.2013 № 713-VII, which entered into force on 1st January 2014.
Income tax rate in 2014 is 18 %, in 2015 will be 17 % and only in 2016 will drop to 16%.
Negative financial results from operations with securities formed on January 1, 2014, is not considered when determining the financial result from transactions with securities on the results of the tax periods in 2014.
Excise Duty
The President of Ukraine has signed the Law of Ukraine 'On Amendments to the Tax Code of Ukraine on the rates of certain taxes' of 19.12.2013 № 713-VII, which entered into force on 1st January 2014.
By Law envisaged increasing the excise tax on alcohol and alcoholic beverages, as well as collection of the tax from operations to refurbish imported to Ukraine vehicles excise cars.
Ecological Tax
The Cabinet of Ministers of Ukraine by its Resolution of 18.12.2013 № 935 approved the list of kinds and categories of vehicles, from year construction of which expired 30 years or more, not intended for commercial carriage of passengers or goods, with the original engine, car body and (if available) frame saved and restored to original condition and pertaining to collectibles or antiques.
Importers of these vehicles are exempt from the recycling environmental tax.
Fixed Agricultural Tax
The Ministry of Revenue and Duties of Ukraine by its Order of 30.12.2013 № 864 approved the form of a declaration on the Fixed Agricultural Tax .
Differences from the current form, approved by the Order of the State Tax Administration, are not found.
Agricultural producers to obtain and confirm the status of the taxpayer annually before 20 February provide as at 1 January of the current year:
- Declaration for the current year on the area for its location;
- Declaration of the current year separately for each plot at the place of its location;
- Calculation of the share of agricultural commodity production for its location and/or location of the plots;
- Data (information) about the availability of land for its location and /or location of the plots.
Other Taxes and Duties
The Ministry of Revenue and Duties of Ukraine by its Order 22 October 2013 № 609 approved the Order of document filling for transference in case of payment ( collection ) of taxes, duties, customs payments, a single contribution, refund of VAT to the budget and refund erroneously or excessively deposited funds. According to the document approved:
- Reminder on completing the settlement document upon payment of a single contribution: in the margin 'Payment' is printed explanatory information about the purpose of the payment (payment of a single contribution for the corresponding period (indicate month and year, for which is paid a single contribution);
- Reminder on completing the settlement document upon payment of a monetary obligation, defined by the Ministry of Revenue and Duties body on the results of the audit, conducted by the Department of the Tax and Customs control: in the margin 'Payment' is printed explanatory information about the purpose of the payment (payment of a monetary obligation on the results of documentary/physical inspection);
- Reminder on completing the settlement document upon payment of a single contribution, determined by the body the Ministry of Revenue and Duties on the results of the desk audit of individuals: in the margin 'Payment' is printed explanatory information about the purpose of the payment (payment of a monetary obligation , determined on the results of the desk audit individuals).
The Ministry of Revenue and Duties of Ukraine by its Order of December 10, 2013 № 779 approved the Regulation on the registration of individuals in the State Register of individuals taxpayers.
Registry is based on the State Register of natural persons-payers of taxes and other obligatory payments. Its component - a separate register, which entered information about Ukrainian citizens, who because of their religious convictions refuse to accept registration number of taxpayer registration card and notify the appropriate supervisory authority and are marked in the passport of a right to make any payment for the series and passport number.
In the Registry, in particular, include the following data on individuals:
- Accrued and/or received revenue;
- Accrued and/or paid taxes;
- Sources of revenue;
- Objects of taxation;
- Information about the tax credit and tax benefits of the taxpayer.
Customs Policy
The Cabinet of Ministers of Ukraine by its Resolution 'Some implementation issues of subparagraph 11 of paragraph 4 of Section XXI 'Final and Transitional Provisions ' of the Customs Code of Ukraine and the second paragraph of paragraph 28 of subsection 2 of section XX' Transitional Provisions 'of the Tax Code of Ukraine' of 25.12.2013 № 954 has approved :
- List of goods (except for excisable goods and commodities groups УКТВЭД 1-24) operations for imports which are exempt from VAT and import duty, if such goods are not produced in Ukraine and imported for the duration of projects (programs) by ITA given in accordance with the initiative of Big Eight ' Global Partnership Against the spread of Weapons and materials of Mass Destruction';
- Import order of such goods.
Control and Responsibility
The Ministry of Revenue and Duties of Ukraine by its Order of 17 January 2014 № 41 approved the Order of Interaction of Structural Subdivisions of Revenue and Duties Bodies during Complaints of Taxpayers about solutions of Revenue and Duties Bodies on the definition of the sums of money liabilities (hereinafter -the Order).
According to the document division of administrative appeals conducts a preliminary analysis of the complaint and finds:
- The existence of circumstances for leaving the taxpayer's complaint without consideration and/or its return;
- What the circumstances found by the inspection and what evidence they are confirmed;
- What evidence the taxpayer confirms their arguments and reflected in the inspection report the circumstances to which the complaint refers to the taxpayer.
When checking the taxpayer's appeal against decisions of state tax inspections, additional charge of monetary obligation which is associated with working taxpayers assigned to risk group of entities, it is obligatory:
- Valuation of the definition in the inspection of the chain, on which the supply of goods (works, services);
- Valuation of Conformity findings inspection report on the application of the tax and legal doctrines;
- Valuation of the findings of the inspection report regarding the implementation of persons unsubstantiated economic operation.
Labour and Salaries
The Ministry of Revenue and Duties of Ukraine by its letter of 05.12.2013 № 6366/І/99-99-17-02-02-15 'On taxation of personal income tax allowances for temporary disability, received a single tax payer,' recalled that temporary disability benefits provided to the insured face in the form of material support, which is fully or partially compensate for the loss of wages (income) in the case of one of his insurance claims, in particular, temporary disability due to illness or injury not related to the industrial accident.
Considering that temporary disability benefits fully or partially compensate for the loss of income, the amount of assistance is not the proceeds from the sale of goods (works, services) of a natural person - entrepreneur and, accordingly, are not subject to the single tax, and therefore taxed at personal income on a common basis at the rates specified by paragraph 167.1 of Art. 167 of the Tax Code of Ukraine.
The Verkhovna Rada of Ukraine by the Law 'On the State Budget for 2014' of 16.01.2014 № 719-VII has set a phased increase in living wage in 2014.
In particular, it is provided from 1 January to keep living wage in the amount of 1176 UAH per month, from 1 July - raise it to 1207 UAH, from 1 October - to 1256 UAH.
For children under 6 years living wage is provided from 1 January - 1032 UAH, from 1 July - 1059 UAH, from 1 October - 1102 UAH. For children from 6 to 18 years: from 1 January - 1286 UAH, 1 July -1320 UAH, from 1 October - 1373 UAH.
For able-bodied: from 1 January - 1218 UAH, from 1 July - 1250 UAH, from 1 October - 1301 UAH.
For incapacitated: from 1 January - 949 UAH, from 1 July - 974 UAH, from 1 October - 1014 UAH.
Also has set a phased increase in the minimum wage in 2014. Provided to keep the minimum wage from 1 January at the level 1218 UAH per month, from 1 July - to raise it up to 1250 UAH, from 1 October - to 1301 UAH.
Hourly minimum wage is provided: from 1 January - 7.3 UAH, from 1 July - 7.49 UAH, from 1 October 1 - 7.8 UAH.
Securities
National Commission for the State Regulation of Financial Services Markets (NCSRFSM) by its decisions of 26.11.2013, № 2672, № 2669, and decision of 15.10.2013, № 2363 approved:
- Regulation on the requirements for the contract on valuation the value of real estate of collective investment institution;
- Regulations on features of accounting operations of collective investment institutions;
- Changes to the Rules for consideration of cases of violation of legal requirements in the securities market and sanctioning.
National Commission on Securities and Stock Market (NCSSM) by its Decision № 2826 of 03.12.2013, 'On Approval of the Regulation on information disclosure by issuers of securities' approved the document.
Regulation extends to issuers on securities and foreign non-resident issuers, including international financial institutions, securities of which allocated or admitted to trading on the territory of Ukraine.
Regulation does not extends to issuers of government securities, investment certificates, shares of corporate investment, which have concluded agreements on asset management corporate investment with asset management company.
Issuers of local bonds subject to the disclosure requirements in annual regular information.
Issuers of securities are required to disclose information on the stock market in the following way:
- organize information in a publicly accessible database NCSSM;
- publication in one of the official publications of the Verkhovna Rada, the Cabinet of Ministers or NCSSM;
- presentation of information in NCSSM.
Issuers prior to the submission of information in NCSSM placed on its website.
Regular annual disclosure of information is carried out in terms of:
- publication in a publicly accessible database NCSSM - no later than 30 April of the year following the reporting year;
- publication in an official publication - no later than 30 April of the year following the reporting year;
- presentation in NCSSM - no later than June 1 of the year following the reporting year.
The Verkhovna Rada of Ukraine by the Law 'On the State Budget for 2014' of 16.01.2014 № 719-VII has provided the right to the Cabinet of Ministers to issue bonds of domestic government loan in the amount of 200 million UAH for additional capitalization of the State Land Bank.
The Cabinet of Ministers got the right to issue government bonds with a further acquisition to the state ownership in exchange for the bonds of additional shares of the Land Bank.
Financial Services Market
National Commission on the State Regulation of the Financial Services Markets by its order 'On Approval of amendments to some legal acts of National Commission on the State Regulation of the Financial Services Markets and the State Commission for Regulation of Financial Services Markets' of November 26, 2013 № 4278 obliged legal entities, raising funds to finance construction projects , have their own websites . On the site licensee shall publish relevant information about yourself (name, location , phone number, initials of the head ), as well as the disclosures required by law about financial services.
Accounting
The Ministry of Revenue and Duties of Ukraine in its letter of 25.10.2013 № 14054/6/99-99-19-03-02-15noted that the TCU does not entitle the company to determine the list of tax expenditures, in particular, in the Regulation of Executive costs.
Therefore, the cost of the promotional events for the reception of both domestic and foreign delegations may be included in the costs taken into account in determining the object of taxation, if any, in particular, the order for a formal reception, inviting representatives (delegations) and their response, the cost estimates, acceptance certificates; activity report; goods issue slips, etc., and other completed primary documents confirming the relationship of such costs from the payer's business activities, including the costs of transport service, translator support, if he is not a staff.
The Cabinet of Ministers of Ukraine by its Resolution 'On Amendments to Certain Regulations of the Cabinet of Ministers of Ukraine and Invalidation of the Cabinet of Ministers Resolution of 14 May 2012 № 456' of 25 December 2013 № 955 abolished the status of a document of strict accountability for a number of forms, including:
- Employment records of employees;
- Licenses for the import and export of ethyl, cognac and fruit;
- Driving license;
- Receipt of providing consumer services to producers, who are not using PPO;
- Receipts, acts of reception and transmission vehicles enterprises - manufacturers of such vehicles and their component parts with identification numbers.
Available balance of strict reporting forms must expend in full.
In connection with the transition of manufacturing activities blank documents of strict accountability in the category of unlicensed cancelled list of forms of securities, documents of strict accountability, economic activity for the production of which is subject to licensing.
The State Budget
The Verkhovna Rada of Ukraineapproved the Law 'On the State Budget for 2014' For the adoption of the bill as a whole voted 249 deputies, while 226 only have been needed. The State budget revenues are UAH 392.6 billion, including revenues of the general fund – UAH 342.7 billion. Expenses and loans provided in the State Budget amounted UAH 471.3 billion, including the general fund - UAH 471.3 billion. Limit amount of the State budget deficit for next year is expected to reach UAH 71.6 billion, which is about 4.3% of GDP.
In the State Budget for 2014 provided an enabling fiscal policy aimed at the continuation of the gradual improvement of living standards.
In order to provide appropriate social protection of every citizen of Ukraine this year provided a phased increase in the living wage and minimum wage.
Other things
The President of Ukraine issued a decree of 30.12.2013 № 717/2013 'On additional measures for state support of arts and culture in Ukraine'. According to the decree the Cabinet of Ministers has to develop and adopt an action plan for the development of arts and culture in Ukraine in the medium term, it is envisaged, in particular, the maintenance of the concert organizations, professional artistic groups, cultural institutions, theaters, museums, libraries, publishers, clubs, historical and cultural reserves, other cultural institutions primarily in the countryside, repair pre-school buildings or premises where they are located, and modernize their material and technical base, ensuring availability of cultural institutions for various categories of the population, etc.
The Cabinet of Ministers by its decree of October 17, 2013 № 948 'On approval of the Program on modernization of heating systems for 2014-2015' (hereinafter - the Program) approved the document and instructed the Ministry of Regional Development, Construction and Housing and Communal Services and the Ministry of Finance to carry out tasks and activities specified by this document include the drafting of the State Budget of Ukraine for the year amounts budget allocations based on the capabilities of the State budget and other sources of funding to ensure the preparation and approval of necessary legal acts.
Council of Ministers of the Autonomous Republic of Crimea, regional, Kyiv and Sevastopol city state administrations instructed to consider the position of the document in the development of regional programs to modernize heating systems and provide local budgets expenses necessary to perform the tasks and activities of the Program.
The Ministry of Justice of Ukraine by its order of 23.12.2013 № 2720/5 approved the Regulation on the State Sanitary and Epidemiological Service of the State Penitentiary Service of Ukraine.
The Cabinet of Ministers of Ukraine by its Decree of 15 January 15 2014 № 20-p delegated plots of 23 interstate overhead power lines, located on the territory of Ukraine, under the management of the Ministry of Energy and Coal Industry.
The total length of these plots is 1 008.5 kilometers.
The Ministry of Infrastructure of Ukraine by its Order of 20.12.2013 № 1031 approved amendments to the Regulation on Registration and Grant of Permission for road trip on the territory of foreign states with the transport of passengers and goods by road in international traffic, their exchange and accounting.
According to the approved amendments:
- accepting applications from motor carriers, that have limited annual quotas, will be made by the Ministry of Infrastructure (formerly - Ukrtransinspektsiya) from 1 October this year within 20 working days;
- found formula for determining the number of permits for road transport, on which will affect the number of penalty points for violating the law on road transport;
- motor carriers, that are not exercising traffic, but said such an intention, granted of permission for more than three road trips.
The National Bank of Ukraine reported that in December money supply, which includes cash in circulation and money on current and deposit accounts in commercial banks, according to current data, increased by 2.9%, or 25.914 billion UAH from 880.434 billion UAH on 1 December 2013 to 906.347 billion UAH on 1 January 1 2014.
Since the beginning of 2013 the money supply increased by 17.2%, or 133.149 billion UAH.
The monetary base, which includes non-cash money on the accounts of commercial banks in the National Bank and cash in circulation, for December increased by 6.5%, or 18.615 billion billion UAH from 288.587 billion billion UAH on 1 December 2013 to 307.201 billion billion UAH as of 1 January 2014, since the beginning of 2013 - increased by 20.3%, or 51.918 billion UAH.
The amount of cash in circulation, according to current data of the NBU, in December increased by 4.2%, or 9.681 billion UAH from 227.807 billion UAH on 1 December 2013 to 237.488 billion UAH on 1 January 2014, since the beginning of 2013 - increased by 16.8%, or 34.243 billion UAH.
State Statistics Service of Ukraine reported that in 2013 all types of transport decreased carriage of passengers by 2.8% compared with 2012 to 6620 million passengers.
Passenger traffic in 2013 decreased by 2.9% to 128.508 billion pass.-km.
In 2013, railway transport decreased carriage of passengers by 0.9% to 425.4 million passengers, passenger traffic decreased by 0.5% to 49.098 billion pass.-km.
Road transport decreased carriage of passengers in 2013 by 3.2% compared with 2012 to 3340 .8 passengers, passenger traffic decreased by 2.4% to 49.092 billion pass.-km.
Air transport decreased carriage of passengers by 0.1% to 8.1 million people, passenger traffic was 12.568 billion passenger-kilometers, reduced by 12.8% compared with 2012.
Water transport increased carriage of passengers by 9.5% to 7.3 million people, while passenger traffic decreased by 9.3% to 77.9 million pass.-km.
State Statistics Service of Ukraine reported that in 2013 industrial production dropped by 4.7% compared to 2012. In December 2013 industrial production decreased by 0.5% compared to December 2012. At the same time in December 2013 industrial production increased by 0.1% compared to November 2013.
State Statistics Service reported that in 2013 changes of GDP compared to 2012 was zero. Nominal GDP in 2013 was 1 444 billion UAH. In the 4 quarter of 2013 GDP grew by 3.7 % compared to 4 quarter 2012. Ukraine's GDP for 4 quarter 2013 compared to 4 quarter 2012 in constant prices was 103.7 %. Compared to 3 quarter 2013 in 4 quarter 2013 GDP grew by 2.4%.
In the 1 quarter 2013 GDP fell by 1.1%, in the 2 quarter - by 1.3 %, in 3 quarter - also fell by 1.3%. Over 2012 GDP grew by 0.2 % compared to 2011 year.
