Legislation Overview (May 2015)

Taxes

VAT

The President of Ukraine signed the Law of Ukraine “On Amendments to the Tax Code of Ukraine on exemption from taxation certain medicines and medical devices” of 09.04.15, № 332-VIII (comes into force from the day following the day of its publication) that temporarily to 31.03.2019 exempted from the VAT transactions of:

• import into the customs territory of Ukraine registered in the state registers of medicines and medical devices and their first delivery;
• the first delivery by pharmaceutical and medical devices manufacturer in territory of Ukraine;
• delivery (transfer) of medicines and medical devices, which were imported and / or supplied in customs territory of Ukraine from the Ministry of Health and / or government enterprises to the end-consumers within budget medical programs.

The VAT exemption is not for all the VAT payers, but only for those who have signed contracts with specialized organizations implementing public procurements. The list of medicines and medical devices, which are purchased on the basis of such contracts, and the procedure of their importation, delivery and intended use for VAT exemption application, should be approved by the Cabinet of Ministers. Therefore, the exemption is inoperative before relevant decision of the CMU.

The Cabinet of Ministers of Ukraine by its Resolution of 05.05.15, № 262 made amendments to the procedure for storage of amounts of value added tax by the agricultural enterprises on the special accounts opened in banks and/or authorities responsible for treasury services of budgetary funds, approved by the Cabinet of Ministers of 12.01.11, № 11 (hereinafter − the Procedure № 11).

These amendments are aimed at the reconciliation of the Procedure № 11 with the current version of the Tax Code of Ukraine (hereinafter − TCU) and the standards for the VAT electronic administration.

In particular, the provisions on maintenance of register of issued and received tax invoices by agricultural enterprises would be excluded from the Procedure № 11 (the maintenance of the register is canceled from 01.01.15 for all the VAT payers).

The Cabinet of Ministers also clarified the procedure for transferring VAT amounts to be credited to the special account of the subject of special regimes on the reporting period results (tax liabilities according to his/her special declaration). The Treasury authority transfers such funds from electronic account to a special account of the subject of special regimes on the basis of the registry of the SFS authority. It is provided for, in particular, by para. 2001.5 of the TCU and para.21 of the Procedure of the electronic administration of value added tax, approved by the Resolution of the Cabinet of Ministers of 16.10.14, № 569.

This procedure of funds transfer is already in force since the reporting period - February 2015. Earlier the subject of special regimes independently transferred funds to his/her special account from current account.

The State Fiscal Service of Ukraine in its letter “On taxation of VAT transactions on the services delivery of transportation of cargo by the taxpayer from FEZ “the Crimea” territory on the other territory of Ukraine” of 09.04.15, № 7556/6/99-99-19-03-02-15 reported that the transactions of taxpayers on the services delivery of transportation of cargo with the road transport from the territory of FEZ “ the Crimea” on the other territory of Ukraine were subject to VAT at the general rate of 20%.

The taxmen explain this by the reason that the temporarily occupied territory of the Crimea is an integral part of the territory of Ukraine, which is the subject to the Constitution and laws of Ukraine. Respectively, according to sub-para.195.1.3 of the TCU to international transport, 0% VAT rate does not apply to such transactions because the transportation from FEZ “the Crimea” on the other territory of Ukraine is considered to be internal.

The State Fiscal Service of Ukraine and the State Treasury Service of Ukraine asked not to arrest electronic accounts of the VAT payers (joint letter “Concerning the electronic administration of value added tax” of 12.03.15, № 5780/5/99-99-23-05-16).

The SFS of Ukraine together with the State Treasury in the mentioned letter applied to the executive service with request not to send the payment requests and resolutions on arrest of funds on electronic accounts of the VAT payers.

This appeal also includes a request to withdraw previously sent documents to the Treasury:

• the payment requests on collecting of funds from the electronic accounts;
• the resolutions on the arrest of funds contained on these accounts.

According to the SFSU, there is a conflict of laws, which requires appropriate amendments in regulations.

The directions of funds transfer from the electronic VAT accounts are provided for by para. 2001.5 of the Tax Code of Ukraine (hereinafter − TCU):

• to the state budget or on special account of agrarian (the subject of special regimes for VAT) − in the amount of tax liability for VAT payable in the reporting period;
• on the current account of VAT payer upon his/her application −  in the amount of funds in excess of his/her declared liabilities.

The funds on the electronic account of VAT payer cannot be the source of repayment of the tax debt, excluding such debt on VAT (para. 87.1 of the TCU).

At the same time, part 2 of Art.52 of the Law of Ukraine “On Enforcement Proceedings” of 21.04.99, № 606-XIV provides for the foreclosure on executive documents primarily on the debtor’s funds, other values, including funds on his/her accounts and deposits in banks and other financial institutions.

The State Fiscal Service of Ukraine reported that the tax invoices unreasonably issued (hereinafter − TI), which were included to the URTI, could not be excluded from the latest or written the adjustments calculation to them because there was not a fact of the transaction for the delivery of goods / services and / or payment (see SFSU resource − sfs.gov.ua).

However, since there is no transaction for the delivery, the tax invoice unreasonably issued should not be included to the VAT return.

At that the differences between the URTI and the data declarations are tax information that indicates the possible violations of the tax legislation by the VAT payer. In this case, the taxpayer to a written request from the state financial control should provide the explanations on such differences and their documentary confirmation within 10 days. If there isn’t any explanation - a documentary unscheduled inspection should be expected for.

The Verkhovna Rada of Ukraine by the Laws “On Amendments to Article 287 of the Customs Code of Ukraine on the establishment of favorable conditions for implementation of the state contracts under defense order and the agreements for the supply of defense products” of 23.04.15, № 365-VIII and “On Amendments to Article 197 of the Tax Code of Ukraine on the establishment of favorable conditions for implementation of the state contracts under defense order and the agreements for the supply of defense products” of 23.04.15, № 366-VIII exempted import of certain goods from duties and VAT: materials, kits, components, equipment and completing products for use in the production of defense purposes. The customer of this product should be public; it is determined by the Cabinet.

The list of preferential products is determined by ch.8 of the Art.187 ч. 8 ст. 187 of the Customs Code of Ukraine. Also the first delivery of the goods is exempted from VAT by new para.197.23 п. 197.23 of the TCU.

The Cabinet should determine the procedure for import, supply and targeted use of preferential goods. The liability is provided for the improper use of preferential goods. The VAT payer, who failed to follow the procedure, should:

• to accrue liabilities in an amount equal to the amount of VAT at import (first delivery) of goods;
• to pay penalty;
• to incur financial, administrative, criminal liabilities established by the TCU and the laws of Ukraine.

The exceptions are also provided for by the legislator. Import of these products is subject to the duty and VAT, if the products:

• come from the country recognized as occupant country under the law and/or aggressor state on Ukraine under the law;
• or imported from the territory of the occupant country (aggressor) and/or from the occupied territory of Ukraine (recognized as such by law).

The laws come into force from the day following the day of their publication.

The State Fiscal Service of Ukraine in its letter “On VAT exemption for the dissemination of the electronic version of the Media” of 19.05.15, № 8045/10/26-15-15-01-09 noted that the transactions of the taxpayer for the supply (subscription) and delivery of electronic versions of periodicals of printed media of domestic production, including recorded on electronic data storage devices (CD-ROM or DVD-disc, etc.), were the subject to VAT in the generally established procedure at 20% rate.

The state financial control noted in the letter that recent amendments made to paras. 197.1.25 of the TCU by the Law of Ukraine of 13.02.15, № 206-VII, which determined the applying of VAT privileges for publications, related to VAT exemption of preparing, manufacturing and distributing of electronic versions of domestic books only (except erotic).

PIT

The Verkhovna Rada of Ukraine by the Law of Ukraine “On Amendments to the Tax Code of Ukraine concerning credit obligations” of 09.04.15, № 321-VIII (comes into force from the day following the day of publication) provided for that the part of foreign currency credit, released from 01.01.15 by bank, as the difference between the NBU rate on the date of transfer foreign currency credit in UAH and of the NBU rate on 01.01.14, was exempted from the individual income tax. But provided they are not repaid before 01.01.14. In addition, revenues from the sale of mortgaged property to repay the credit debt are exempted from the individual income tax, if the property is not purchased by this credit (loan). In addition, interests, fees and / or penal sanctions (penalty) for any credits released by the bank for its independent desire (not related to insolvency proceedings) are exempted from the individual income tax. The main thing is that it should be done before the expiry of the limitation period.

The income tax

The State Fiscal Service of Ukraine explained that section III of the Tax Code of Ukraine (hereinafter – the TCU) did not limit the rights of customers expenses according to value of goods (works, services) purchased in the taxpayers with legal address and location in the ATO area in the Donetsk and Luhansk areas (letter of the SFS of Ukraine “On the right to charge to expenses the value of goods (works, services) purchased in the taxpayers from the ATO area” of  31.03.15, № 6711/6/99-99-19-02-02-15).

The subject to company income tax – the income with source of origin from Ukraine (and beyond), which is determined by the financial result adjusting to taxation as defined in the financial statements in accordance with the international accounting standards or international standards, on differences arising according to the rules of ch.III of the TCU (paras.134.1.1 of the TCU).

Unified social contribution

The State Fiscal Service of Ukraine reported that the Order of the Ministry of Finance of Ukraine “On approval of the Procedure of formation and submission by insurants of report on the amounts of accrued Single Contribution for obligatory state social insurance” of 14.04.15, № 435 came into force on April 30. This document approved a new reporting for the Single Social Contribution, the order of its completion and submission. However, an electronic report for April 2015 should be submitted in the old form but the new form we should apply for the first time by reporting for May i.e. in June 2015. The state financial control confirmed this in its letter dated 30.04.2015 № 15939/7/99-99-17-03-01-17.

Among the main differences of updated reporting − the entering of decreasing coefficient to the rate of Single Contribution as well as separate reflection of additional accruals if the actual basis for accrual is less than minimum wage.

The Ministry of Finance of Ukraine approved appropriate instruction by the Order of 20.04.15, № 449 “On Approval of Instruction on the Procedure for calculation and payment of the Unified Contribution for compulsory state social insurance”. This document defines the procedure for calculation and payment of the Unified Contribution, penal sanctions, arrears recovery of insurance funds by insurers. All the innovations are taken into account in this new Instruction. The innovations provided for by Articles 4, 6, 7, 8, 10, 12, 25, paras.92 — 95 ch.VIII “Final and Transitional Provisions” of the Law of Ukraine “On the collection and accounting of the Unified Contribution for compulsory state social insurance” of 08.07.10, № 2464-VI. It is about the application of decreasing coefficient to the rate of the Unified Contribution accrual, the minimum basis for the Unified Contribution accrual, exemption from calculation and payment of the Unified Contribution of mobilized entrepreneurs etc.

Other taxes and fees

The State Fiscal Service of Ukraine, in the SFSU letter “On the use of water for domestic and drinking needs” of 03.03.15, № 4466/6/99-99-15-04-01-15 clarified whether water consumers was the payer of rental payment for special water use (hereinafter - rental payment), water consumer that had permission for special water use on the wording “for household and drinking needs” in it.

Based on the controllers’ answers, collection of the rental payment does not depend on the wording in the permission. According to them, company is a payer of rental payment if it uses water, in particular, for household needs, and has a permit.

In turn, entities that use water only to meet the drinking and sanitary needs of public do not pay the rental payment according to para 255.2 of the TCU.

The Ministry of Justice of Ukraine registered the orders of the Ministry of Finance:

On approval of the Tax return form on transport tax of 10.04.15, № 415;

On approval of the Tax return form on real property tax different from parcel of land of 10.04.15, № 408.

Therefore, everyone will see soon the long-awaited reporting form on the transport tax and the real property tax.

Mobilization and ATO

The State Fiscal Service of Ukraine in its letters “On involvement of means of transport during mobilization” of 27.02.15, № 4223/6/99-99-19-02-01-15 and “On accounting of means of transport transferred to the needs of the Armed Forces of Ukraine” of 24.02.15, № 3821/6/99-99-19-02-02-15 clarified the tax accounting of means of transport of private enterprises transferred to the needs of the AFU.

Thus, according to the tax authorities, it becomes clear that as the means of transport are not used in the business activity of the taxpayer in the process of mobilizing, they are to be considered as nonproductive fixed assets. Therefore, accrued depreciation should be adjusted on them in the tax profit accounting.

In addition, when transferring of means of transport to AFU, there is no passing of ownership on it, and therefore it is not necessary to charge VAT obligation. Also there are no any reasons for the adjustment of the VAT tax credit, according to inspectors.

If the transport is not returned to the company and compensated its value after the mobilization, it is considered to be the payment for such means of transport. In this case, the means of transport are recognized as sold for budgetary funds and on the date of receipt of such funds the VAT liabilities should be recognized.

The State Fiscal Service of Ukraine on its website explained the procedure for filling the tax calculation of income amounts accrued (paid) for the benefit of individuals and the amounts of withheld tax from them (f. № 1DF) in respect of mobilized workers for the II quarter.

Thus, if in the second quarter the employer will receive compensation from the state budget within the average wage of mobilized one for March (January, February) 2015, it should be reflected based on income “128” in f. № 1DF. But everything depends on whether the average wage would be charged further or not for mobilized workers. Therefore:

1. If the mobilized worker would be demobilized in the end of March (i.e., average wage would not be accrued during military service in the II quarter), in section I of f. № 1DF for the second quarter on the mobilized worker based on income “128”  it should be reflected:

• in box 3a “The amount of accrued income” - a dash (amount of accrued compensation within the average wage for March was reflected in the I quarter);
• in box 3 “The amount of paid income” - the amount received from the budget and the compensation paid within average wage for March;
• in boxes 4a and 4 – dashes (compensation is not the subject to the income tax).

2. If in the II quarter the compensation would be accrued to the mobilized worker within average wage, in section I of f. № 1DF for the second quarter on the mobilized worker based on income “128” it should be reflected:

• in boxes 3 and 3a - the amount of accrued, received and paid compensation of average wage to mobilized workers for the April - June;
• in boxes 4a and 4 – dashes (compensation is not the subject to the income tax).

The dashes should be put in section II of f. № 1DF for the second quarter in line “The war tax”. Because, the compensation within average wages of mobilized workers is not the subject to the war tax.

Temporarily Occupied Territories

The State Fiscal Service pointed: if the fixed assets (hereinafter − FA) were not evacuated from the Crimea, the depreciation on them should be terminated from the month following the month of their withdrawal from service. In addition, after the occupation when the reverse introduction of the mentioned objects into the service, the company income tax payer would have a right to continue the depreciation.

At the same time, on the basis of controllers’ words, the enterprises in the Crimea (business units) had no right to take account of the residual value of such FA in tax expenditures under para.146.16 of the TCU. Because they are obliged to make an inventory of the assets as of the 1st day of the month following the month, in which the obstacles of access to them are disappeared. Only after establishing the fact of FA liquidation, the business entity may write off them in the account (see the SFSU letter “Concerning the tax accounting of fixed assets that are in the temporarily occupied territory” of 31.03.15, № 6694/6/99-99-19-02-02-15).

Control and Responsibility

The Ministry of Justice of Ukraine jointly with the Ministry of Social Policy of Ukraine reminded: those responsible for violation of labor legislation would be liable to disciplinary, material, administrative and criminal liabilities (see the Ministry of Justice of Ukraine letter “On Liability for failure to pay the average wage to the mobilized employee” of 24.09.14, № 486-0-2-14/7.2and the Ministry of Social Policy of Ukraine letter “On Liability for failure to pay the average wage to the mobilized employee” of 18.09.14, № 1301/13/84-14.

The administrative liability would be imposed on legal entities public officials and individuals - entrepreneurs for violation of the established terms of wages payment, their payment not in full. Its size is from UAH 510 to UAH 1,700 (Art. 41 of the Code of Ukraine on Administrative Violations).

The Criminal liability is established for unreasonable wages nonpayment or other established by law payments to citizens more than for one month, done knowingly by the head of company, institution or organization regardless of ownership or by entrepreneur (Art. 175 of the Criminal Code of Ukraine).

If the person pays salary or other payments to citizens before the bringing to justice, he/she is exempt from the criminal liability.

It should be recalled, the place of work is to be preserved for the workers called up for military service during the mobilization, the special period but not exceeding one year, and  the average wage is to be compensated from the budget on the enterprise, institution, organization where they worked at the time of conscription, regardless of subordination and ownership. The payment of such compensation is carried out at the expense of the State Budget of Ukraine in the manner determined by the Cabinet.

Labour and Salaries

The State Treasury Service of Ukraine in its letter of 23.05.15, № 14-11/315-15327 “On compensation transfer of average wage of mobilized employees” clarified that it was not required to open accounts with special use to obtain the compensation of average wage of mobilized employees from the budget. It is known that the actual expenses of the employer are compensated from the budget and the payment procedure of compensation to companies, institutions, organizations within average wage of employees called up for military service during the mobilization does not require to open separate accounts for this.

The Ministry of Social Policy of Ukraine reported on its website that funds for compensation payment of average wage expenses to mobilized employees were transferred to companies, organizations, institutions for the period starting from January 2015.

In this case the compensation from the budget within the average wage to employees called up for regular military service is not provided by the law.

The Ministry of Social Policy of Ukraine in its letter of 24.03.15, № 4053/0/14-15/18 “On payment of monetary compensation for unused social vacation” informs that when the employee dismissal the employer must pay the compensation to him/her for all unused annual leaves and additional vacation to employees, who have children or adult child - disabled from childhood of subgroup A of I group (Art.24 of the Law on vacations). Such additional vacation is considered to be social. The law has no limitation period after which the employee loses the right to the vacation. Therefore if the employee retires and has unused social leave for this year, the monetary compensation should be paid for this period. He/she does not have a right to the leave for this year at a new work place.

The law does not provide the possibility to transfer monetary compensation for unused days of specified social leave to a new employer (when dismissal for reassignment).

The Ministry of Social Policy of Ukraine in its letter of 02.02.15 р. № 102/13/84-15 “On establishing of working day without fixed working hours” notes that current legislation does not prohibit using working day without fixed working hours for employees working part-time.

However, it is indicated in para.2 of Guidelines on the procedure for granting the employees with part-time working day an additional annual leave for the special nature of work, approved by the Ministry of Labor and Social Policy of Ukraine of 10.10.97, № 7, that working day without fixed working hours is not applied for the employees engaged in work part-time. The experts of the Ministry of Social Policy emphasize that these are just recommendations, so the mentioned above document is not a normative legal act.

At the same time it is noticed in the letter:  if the employee after the work on the basic position immediately gets down to work on a part-time basis in this institution, that is not possible to perform work periodically beyond normal working hours, so there are no reasons to establish the working day without fixed working hours at the basic position.

Accounting and Reporting

The Ministry of Finance of Ukraine abolished the Accounting Standards 35 “The tax differences” and the procedure contributions into the income of state budget of 10 per cent of cost of products made with a temporary deviation from the requirements of relevant standards for its quality (approved by the Ministry of Finance of Ukraine of 09.11.93, № 86). The mentioned regulatory acts were abolished by the Order of the Ministry of Finance of Ukraine “On the Annulment of certain Orders of the Ministry of Finance of Ukraine” of 31.03.15, № 391 (comes into force from the day of its official publication).

Financial Markets

The National Bank of Ukraine in its letter “Guidelines for characteristics of risky transactions” of 06.04.15, № 25-04001/22852 reported the characteristics, which confirmed that certain banking operation related to the risky cash transactions. That is, it shows the risks of incomes legalization (money-laundering) obtained in criminal way or terrorist financing.

These include, for example, regular (more than 3 times per month) revenues (including from abroad) from legal entities and / or individuals in favor of individual that later issued in cash.

It should be noted, the NBU during banks auditing would analyze the presence of facts that could indicate the implementation of risky transactions by the banks clients, provide the evaluation of measures that the bank carried out in the area of risk management of legalization of criminal proceeds / terrorist financing. In addition, the National Bank during the auditing would evaluate the volume of conducted risky cash transactions and share volume of risky cash transactions conducted by bank customers for the period, of the total volume carried out during the same transaction period concerning funds debiting (except for transactions in the payment / delivery of deposit with fixed period, wages, pensions, stipends and other social payments) under the same type of open accounts in the bank and/or transactions of the same category (by the same category) of customers.

Fee Policy

The Cabinet of Ministers of Ukraine by its Resolution “On amendments to annex to the Resolution of the Cabinet of Ministers of Ukraine dated 25 December 1996, № 1548” of 25.03.15, № 240 (comes into force from the day of its official publication) adjusted powers of central executive bodies, the Council of Ministers of Autonomous Republic of Crimea, regional, Kyiv and Sevastopol city state administrations, executive authorities of city councils to regulate prices and tariffs for certain types of products, goods and services.

Thus, the Council of Ministers of Crimea, Kyiv and Sevastopol city state administrations do not regulate tariffs for transportation of passengers and baggage by buses operating in usual traffic condition, in suburban and interurban interregional traffic.

In addition, mentioned above authorities and executive authority of Lviv and Kryvyi Rig city councils do not prescribe rates for passenger transportation and travel tickets cost in public municipal passenger transport – underground, bus, tram, trolleybus (which operates in usual traffic condition).

Public Procurements

The Ministry of Economic Development of Ukraine reminded that there was a new reason for rejection to participate in public procurements procedure to bidder from 26.04.15 in ch.1 of the Art.17 of the Law of Ukraine “On public procurements implementation” of 10.04.14, № 1197-VII (hereinafter − the Law on public procurements). Thus, the customer is required to reject the proposal of the procedure participant – legal entity, if information about the person is included into the Unified state register of people who committed corruption or related to corruption offenses, or he/she has no anti-corruption program or authorized one from anti-corruption program.

Therefore the  Ministry of Economic Development explained (see Clarification  “On the entry into force of amendments to the Law of Ukraine “On public procurements implementation” of 30.04.15, № 3302-05/14183-07):

1. The above-mentioned requirement applies only to those procurement procedures, which have been launched after 26.04.15. It should be reminded: the start date of procurement procedure is considered to be the day of publication of announcement of its implementation.

2. The customers are entitled in the competitive bidding documentation to demand from participants – legal entities to document the presence of approved anti-corruption program or the authorized one from anti-corruption program, only if the expected cost of procurement item of goods (services) equals or exceeds UAH 1 million, works – UAH 5 million. If it is provided for other amounts in the annual procurement plan, it is not required to demand such papers from participants. When a customer requires from the participants to confirm the presence of anti-corruption program, the following should be taken into account. Legal entities to approve the anti-corruption program after they discussed it with employees on the basis of typical anti-corruption program developed by the National Agency for the Prevention of Corruption.

3. The National Agency for the Prevention of Corruption maintains now the Unified state register of people who committed corruption or related to corruption offenses (hereinafter − the State Register). It should be reminded that the Ministry of Justice has maintained the State Register until now. And since there is no an active State Register under the Law of Ukraine “On Prevention of Corruption” of 14.10.14, № 1700-VII, the Ministry of Economic Development assumes that bidder can confirm the relevant information in any form.

Therefore, if there is a detailed requirement to the participants in the competitive bidding documentation to provide information from the State Register, while participants gave it in any form, the customer can allow the proposals of such participants to evaluation. Of course, if there are no other reasons for their rejection.

The other things

The Verkhovna Rada of Ukraine extended for four months the term for disclosure submission of final beneficial owners (controllers) to legal entities, registered to 25.11.14.

Also religious organizations, government and municipal enterprises as well as  legal entities, which participants are only individuals, if their final beneficial owners (controllers) coincide with their participants (members), are exempt from mandatory submission of such information.

Appropriate adjustments are provided for by the Law of Ukraine “On amendments to Certain Laws of Ukraine concerning information about the final beneficial owner (controller) of legal entity” (the bill № 2896).

The Verkhovna Rada of Ukraine adopted the Law “On peculiarities of juristic actions with the state guaranteed by the state debt and local debt”.

According to the Law, the Cabinet of Ministers and the relevant city councils are allowed to make decisions on temporary suspension of payments on public external borrowings, external borrowings guaranteed by the state and local external borrowings.

The Cabinet of Ministers of Ukraine by its Resolution “On compensation to people affected by Chornobyl catastrophe and invalidation of certain resolutions of the Cabinet of Ministers of Ukraine” of 14.05.15, № 285 (comes into force from the day of its official publication) established the following dimensions of payments to people affected by Chornobyl catastrophe:

• lump sum benefits to citizens who evacuated, relocated (are being relocated) or independently moved (migrated) to a new residence (para.1 of part 1 of Art.36 and 48 of the Law of Ukraine “On status and social protection of citizens affected by the Chernobyl catastrophe” of 28.02.91, № 796-ХІІ (hereinafter − the Law on social protection of Chornobyl victims), - in the amount of UAH 15.7 for each family member;
• lump sum compensation to the participants of liquidation of the consequences of Chernobyl catastrophe, who became disabled as a result of the Chernobyl catastrophe, families, which lost their breadwinner among those people, who classified as liquidators of the Chernobyl catastrophe and whose deaths are related to the Chernobyl catastrophe, parents of the deceased (Art. 48 of the Law on social protection of Chornobyl victims):

- disabled people of group I − UAH 379.3;

- disabled people of group II − UAH 284.4;

- disabled people of group III − UAH 189.6;

- disabled children − UAH 1264;

- families, which lost their breadwinner − UAH 7586;

- parents of the deceased − UAH 3792.

The Cabinet of Ministers of Ukraine obliged the State Property landlords to publish additionally the protocol on results of the competition for a lease right of state property on its website. It should be done in the same period as for publication of the results of competition in print media − within three working days after their approval (see the Resolution of the CMU “On amendments to paragraph 28 of the Procedure of competition for a lease right of state property” of 14.05.15, № 294 (comes into force from the day of its official publication).

Related amendments were made to para. 28 of the Procedure of competition for a lease right of state property, approved by the Cabinet of Ministers of 31.08.11, № 906.

It should be reminded: the protocol on results of the competition should be approved by the order of the landlord within three working days after its signing by the all committee members, who participated in the meeting to determine the winner, and by the competition winner.

The Cabinet of Ministers of Ukraine approved appropriate Procedure by its Resolution of 29.04.15, № 321 “On approval of the transfer Procedure of summer and garden cottages, which meet the state construction standards, in residential buildings”. The document determines that the transfer of summer cottages in residential buildings is to be performed free of charge by local government authorities.

For the purpose, the owner (an authorized person) of cottage should submit to the executive board of the village (town or city) council the appropriate application in the prescribed form (Annex 1 to the Procedure) together with the following documents:

• a copy of the document of the right of ownership of summer or garden cottage;
• written consent of the co-owners (if any) for the transfer of such cottage in a residential building;
• report on the technical inspection of summer (garden) cottage with the conclusion of its compliance with state construction standards in the form according to Annex 2 to the Procedure.

The decision on the transfer of summer (garden) cottage in residential building is to be decided within a month. In the case of positive response the local council within three days issues (sends) to the owner, by registered letter with schedule of enclosures, the decision to transfer summer (garden) cottage in residential building indicating its address. The relevant amendments are also included in the State Register of property rights to immovable property.

The State Fiscal Service of Ukraine is of the opinion that an entrepreneur cannot be the founder of the company and contribute to the equity capital of commercial company (letter of the SFS of Ukraine “On certain issues of tax accounting by individuals - value added tax payers” of 28.04.15, № 4000/Б/99-99-17-02-02-14).

According to controllers, an entrepreneur does not have the right to own immovable (or movable) property. Therefore, the entrepreneur has a right to acquire, build, build objects of property and transfer ownership right for them only as an individual.

A participant of commercial company could be an individual or legal entity. The commercial company is an owner of the property transferred the ownership to it by the company participants as a contribution to statutory (joint stock) capital (para. 1 of Art. 114, para. 1 of Art. 115 of the Civil Code of Ukraine).

The right to private ownership is enshrined by Art.41 of the Constitution of Ukraine and Art. 325 of the Civil Code of Ukraine: the property rights entities are individuals and legal entities.