Taxes
VAT
The State Fiscal Service of Ukraine in its letter “On the possibility of inclusion in the tax credit of the VAT amount specified in the tax invoice where there was an error in the preparation date” of 13.09.16, № 19854/6/99-99-15-03-02-15 explained that the tax invoice prepared with the incorrect date could not confirm the tax credit of a buyer. Because this error makes it impossible to identify the period of the transaction for the supply of goods/services, so para.201.11 of TCU does not work in this case.
As it is known, the tax invoice, which contains errors on the required requisites (except the product code according to the UCC FEA), is the basis for the attributing the amounts of value added tax (hereinafter − VAT) to the tax credit by the buyer, if the errors do not prevent to identify implemented transaction, its content (product / service to be supplied), the period, the parties and the amount of tax liabilities.
The State Fiscal Service of Ukraine in its letter “On the Procedure for taxation of VAT transactions for the provision of the right to use a computer program under a license agreement” of 12.09.16, № 19600/6/99-99-15-03-02-15 reports the following: if under the license agreement the terms of use of the computer program are limited to the functional purpose and playback program is limited to the number of copies required for use (the use by “end-consumer”), the receipt of remuneration by the supplier should not be considered as royalties. This payment is a payment of cost of delivered computer program (its copies), the transaction for the supply of which is exempt from VAT in accordance with para.26¹ of sub-sec. 2 of sec. XX of TCU.
Considering the transaction for providing the right to use a computer program, in this case controllers recommend to make adjustment calculation to previously executed tax invoice.
It is worth mentioning that the adjustment calculations on reduction of the amount of compensation should be registered in the Unified Register of tax invoices by the buyer.
The State Fiscal Service of Ukraine by its letter “On the procedure for taxation of VAT transactions of the taxpayers with the free transfer of goods (gifts for the holidays and corporate events) to their employees” of 05.09.16, № 19171/6/99-99-15-03-02-15 reported that compensating value added tax (hereinafter − VAT) was not required to be accrued on the transfer of gifts to employees for holidays and corporate events. At the same time, it is necessary to accrue the VAT only once − in view of the tax base.
The tax authorities do not mention that the free transfer of goods should be “within the limits of economic activity”. Instead, they call the free transaction of supply as the subject to VAT.
It should be recalled that recently fiscals expressed unexpected position, during free deliveries of goods/services tax liabilities arise only once − in view of the tax base, and conditional VAT should not be accrued.
The State Fiscal Service of Ukraine in its letter “On VAT taxation of compensation for land rent” of 13.09.16, № 19853/6/99-99-15-03-02-15 stated its opinion in favor of the imposition of VAT on compensation amount of the land tax, which tenant paid to the landlord. The tax authorities called such compensation as a part of the tax base under para. 185.1 of TCU.
As is known, since the beginning of this year there are explanations of the controllers that such compensation of utilities, the land tax, the tax on real property received by the landlord from the tenant, are not the subject to tax, therefore, the VAT should not be accrued on them.
Subsequently, the State Fiscal Service of Ukraine (hereinafter − SFSU) changed its position to traditional, and agreed with the accrual of VAT on compensation of utilities, didn’t directly expressed its approach to tax compensation of the land tax.
Corporate Income Tax
The State Fiscal Service of Ukraine in its letter “On the taxation of incomes when the payment of royalties for the software, if such payments are not considered as royalties” of 28.09.16, № 21036/6/99-99-15-02-02-15 reports: if the company makes payments to non-residents, which according to the rules of accounting are recognized as royalty, and do not fall under a concept for taxation purposes of the income tax, so para. 141.4 of TCU should not be applied to such payments. Consequently, it is not necessary to deduct the withholding tax.
The list of payments, which are not considered as royalties for tax purposes, is defined in paragraph 14.1.225 of TCU. In addition, it is noted if the international agreement, consent to be bound by a treaty of the 4.1.225 TCU. In addition, it is noted if the international agreement, to be bound by the Verkhovna Rada of Ukraine, establishes other rules than those provided by the TCU, the rules of the international treaty should be applied. So, if such a treaty for the avoidance of double taxation with the appropriate country contains its own interpretation of the concept, to determine the royalty should be applied such an international agreement.
The State Fiscal Service of Ukraine in its letter “On adjusting of financial results before tax in the amount of transferred funds to non-profit organizations” of 16.09.16, № 20223/6/99-99-15-02-02-15 explained how the taxpayer of the income tax should adjust the financial result before tax at the request of sub-para. 140.5.9 of the Tax Code of Ukraine (hereinafter − TCU) during the transfer of goods (works, services) and funds to non-profit organizations and institutions if the financial results of the previous reporting year of such providers was negative. According to the tax authorities, if the subject to income tax was absent in the previous year, the financial result before tax of current year should be increased to the full amount of free delivered funds (goods and services), to non-profit organizations.
The State Fiscal Service of Ukraine in its letter “On submission of the non-profit Report” of 17.10.16, № 33649/7/99-99-15-02-01-17 explained that awaited for a person making no profit, who would violate non-profit conditions of Art.133.4 of the Tax Code of Ukraine (hereinafter − TCU). The person should submit a report on the use of income (profit) of a non-profit organization, approved by the Ministry of Finance of Ukraine of 17.06.16, № 553, within the time limit prescribed for the monthly reporting period (for the period from the beginning till the last day of the month in which the violation was committed). Also it is necessary to calculate in it the income tax at the rate of 18%, based on the amount of funds used inappropriately. This person making no profit should be excluded from the Register of non-profit institutions and organizations.
Then before the end of current year, the non-profitable person is obliged to quarterly submit the quarterly financial reporting and tax-profitable declaration to the tax agency. Starting next year, he/she should report in a general way as a normal payer of the income tax.
Other Taxes and Fees
The State Fiscal Service of Ukraine in its letter “On the procedure of collection of excise tax from malty beer” of 28.09.16, № 10209/О/99-99-15-03-03-14 noted that the premises of retail trade (restaurant-brewery) when the beer selling of own production should impose the exercise tax on beer simultaneously at two rates:
- specific (absolute) rate of the excise tax at the rate of 2.48 UAH per litre;
- ad valorem (relative) rate of 5% of the cost (including VAT and excluding the excise tax from the sale of retailers).
This explanation is based on the fact that TCU does not provide for exemption from taxation of transactions with excisable goods in the case when economic entity is a manufacturer and retailer.
Accounting and Reporting
The State Fiscal Service of Ukraine by its order “On approval of the State Register of cash registers” of 28.09.16, № 813 approved a new state register of cash registers (hereinafter – cash register). It should be recalled that it provides a list of models, modifications of cash registers permitted to primary registration, and cash registers, the primary modification of which is prohibited. Accordingly, the preliminary list, which was approved by order of the SFSU “On approval of the State register of payment transactions” of 16.06.16, № 535 lost its relevance.
The State Fiscal Service of Ukraine in its letter “On the depreciation of fixed assets created by allocation, applying the terms of use to them” of 04.07.16, № 14492/6/99-99-15-02-02-15 explained the issue. Thus, the subject to the tax depreciation of fixed assets (hereinafter − FA) of a company, which to be allocated, in accordance with the provisions of paragraphs 138.3.1 of TCU is the net fixed assets, referred to it by the separation balance sheet, the value of which is determined by the rules of tax accounting and reflected in the tax declaration of the company, from which was an allocation.
The State Fiscal Service of Ukraine by its letter “On the use of cash register” of 17.08.16, № 17922/6/99-99-14-05-01-15 clarified the situation concerning registration of settlement documents in the case of delivery by courier service. Consequently, the goods seller should provide to the buyer the delivery of settlement document (check) earlier printed together with the purchased goods through courier services (postal service), which could be either third-party organization, and the structural unit of the seller.
Also, the settlement document (check) could be provided to the buyer by courier (postal service) during the transfer to the buyer of the purchased goods and payment of the funds for its purchase. In this case a payment document (check) should be printed using the cash register registered by name of this courier (postal service).
The Ministry of Finance of Ukraine in its letter “On Presentation of Financial Statements” of 14.08.16, № 31-11410-07-10/23534reminded that the accounting policy should be normally changed since the beginning of the year. But it also could be done in the middle of the year, if:
- statutory requirements are changed;
- requirements of authority, which approves regulations (standards) of accounting, are changed;
- changes provide accurate reflection of events or transactions in the financial statements of the company.
Regulatory document on accounting policies could be accept as a basic for time of the company activities, which could be amended about definite time if necessary.
Labor and Salaries
The Cabinet of Ministers of Ukraine adopted a resolution “Some issues of payment of pensions, financial aid and salaries to employees of budgetary institutions” of 22.09.16, № 662, which defined the requirements for banks that would be able to carry out the payment of pensions, financial aid and salaries to employees of budgetary institutions. The selection of banks will be carried out following the contest of a single commission established by the Ministry of Finance, with the participation of representatives of the Ministry of Social Policy, the Ministry of Economic Development, the Treasury, the Pension Fund and the National Bank.
To be authorized for carrying out these payments could be banks with the assets, the share of which is not less than 1% of the assets of the banking system or the controlling stock interest of which is owned by the international financial and banking institutions with an international rating of investment grade from internationally recognized rating agencies, or in which the state owns a share more than 75%. Also, for the duration of the competition, the banks must meet the following requirements:
- during the last six months, the NBU did not apply measures of influence in the form of restriction, suspension or termination of transactions carried out by the bank;
- do not have a financial debt to the Deposit Insurance Fund of individuals on the payment of fees, fines, penalties;
- do not have debts on the payment of taxes and fees;
- over the past 12 months Ukraine, foreign countries − members of the Organization for Economic Cooperation and Development or EU did not apply any sanctions against them or the owners of a substantial participation in them or related parties of them;
- conduct emission of electronic payment instruments (payment cards).
Financial institutions will have three-month of the transition period to achieve compliance with the updated requirements.
The State Service of Ukraine on Labor Issues in its letter “On the certificate of the medical and social expert commission upon entry into employment” of 04.05.16, № 5081/4/4.1-ДП-16 pays attention to an important detail: the medical and social expert commission (hereinafter - MSEC) can establish that the health of the invalid prevents the execution of professional duties, threatens the health and safety of working of other people or continuation of employment or change in its nature and volume threatens the health deterioration of the person. In this case, it should be noted in the certificate to the act of MSEC inspection.
Therefore, a disabled person when getting a job should submit specified certificate, in order that a prospective employer could find out about the presence/absence of contraindications. In any case, a copy of such a certificate should be leaved in the company (with certification of its compliance with the presentation of the originals). If it will be denied in the employment due to the contraindications, then the document will confirm the validity of the refusal. And if there are no any obstacle, and a disabled person is hired, then a certified copy, in particular, can be the basis for the application of a reduced rate of the unified social contribution.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated February 2, 2011, № 98” of 05.10.16, № 681 determined that period of business trip of state employees could not exceed 60 calendar days, except in cases determined by the law.
The maximum duration of business trip within Ukraine for other personnel, assigned to a business trip by companies, institutions and organizations that are fully or partly funded at the expense of budget funds, as before, cannot exceed 30 calendar days (except in certain cases).
The maximum duration of business trip of state employees, who are directed to the prevention or elimination of consequences of natural disasters, epidemics, epizootics, industrial accidents as well as elimination of other circumstances that caused or may cause life-threatening situation or the conditions of people’ life, is one year.
Peculiarities of state employees assigned to a business trip for performing of their official duties outside the permanent place of service, in particular, to work of the secretariats of international organizations, representatives of international organizations in other countries or foreign authorities will be determined in accordance with the procedure approved by the Government.
The Ministry of Social Policy of Ukraine by its letter “On the dismissal of female employee, who has foreign citizenship” of 02.03.11, № 2164/0/14-11/026 reports that sec.3 of Art.184 of the Labour Code does not apply to female workers, who are foreign female citizens, the Article prohibits the employers to dismiss on their own initiative, in particular, pregnant women, women with children under three years old, single mothers who have children under 14 years of age or disabled children. The exception to this rule is the dismissal in connection with the liquidation, when it is possible the dismissal with mandatory employment.
In addition, the agency notes that foreign employees are entitled to vacation on a par with the citizens of Ukraine, including maternity leave.
The State Statistics Service of Ukraine in its letter “On the assignment of the loan amount, which according to the decision of the management is not refundable by the employee, to the labor remuneration fund” of 08.06.16, № 09.4-12/147-16 concluded that the amount of borrowing by a decision of the management to be not refundable by the employee, assigned to the labor remuneration fund in a part of other incentive and compensation payments. It is explained by the criterion of crediting of certain payment to wages and not to other items of expenditure, is the possibility to use by the employee of certain type of goods (services) for personal needs or the needs of other family members and the employer gives them in order to attract and retain labor force.
The Social Insurance Fund for Temporary Disability in its letter “On amendments to a form of the medical disability certificate” of 19.05.16, № 5.1-31-768 noted: economic entities in connection with the identification of filling the medical disability certificate with violations of the Guidelines for the procedure of issuing the documents certifying temporary disability of citizens, approved by the Order of the Ministry of Health of Ukraine of 13.11.01, № 455, and Guidelines on the procedure of filling the medical disability certificate approved by the Ministry of Health of Ukraine, the Ministry of Labour and Social Policy of Ukraine, the Social Insurance Fund on Temporary Disability, the Social Insurance Fund from industrial accidents and occupational diseases of Ukraine of 03.11.04, № 532/274/136-ос/1406 and № 532 (for example, it was not indicated the company address; error in the name of the company, etc.) should return such a medical disability certificate to the employee, in order to provide it be him/her to the appropriate medical institution for making additions and corrections. Only then the commission (authorized) should make a decision on the appointment of aid in case of temporary disability under such a medical disability certificate.
It should be noted that if there is more than two corrections in the form of the medical disability certificate, it should be issued its duplicate.
Control and Responsibility
The State Fiscal Service of Ukraine in its letter “On avoiding double taxation” of 27.09.16, № 6302/В/26-15-13-04-14 notes that certificate on the amount of income received by residents of Ukraine and paid taxes issued by the tax authorities of the Russian Federation (hereinafter – RF), does not require additional certification (consular legalization or certification by apostille) for the purposes of sub-para. 13.5 of the Tax Code of Ukraine (hereinafter − TCU). Ukraine and RF are the parties to the Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal Matters of 22.01.93. This fact allows taking tax documents without any additional license.
It should be recalled that in order to be eligible for crediting of tax and fees paid outside Ukraine, the payer is required to obtain from a public authority of the country, where such income (profit) is purchased, authorized to levy such a tax, a certificate on the amount of paid taxes and fees, and also on base and/or the subject to taxation. The indicated certificate is to be the subject to legalization in the corresponding country, the appropriate foreign diplomatic institution of Ukraine, unless otherwise provided by applicable international treaties of Ukraine (sub-para. 13.5 of TCU).
The Ministry of Justice of Ukraine on its official website explained that according to the requirements of the current legislation, in fact accommodations cannot be taken from the debtors of public services for repayment of the utility payments. The current legislation guarantees the protection of the human right to housing, which is enshrined in the Constitution of Ukraine. In particular, it is forbidden to take the only housing of the debtor and the land plot on which it is located.
In order to protect children’s rights, the law prohibits the alienation of immovable property where the minors are registered. In such cases, it is required prior permission of the guardianship and trusteeship authorities.
At the same time the procedure for the recovery of property of the debtor requires that first of all the debt to be repaid at the expense of the debtor, and in the absence of funds − other property and only in extreme cases − at the expense of housing recovery.
The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Part X “Transitional Provisions” of the Land Code of Ukraine on the extension of the prohibition of alienation of agricultural lands of 10.11.2015, № 767-VIII. The Parliament by this normative legal act extended the moratorium on purchase and sale and other alienation of agricultural land to January 1, 2018. But this postponement could be called minimal, because the moratorium should last before the regulation of turnover of agricultural land procedures in terms of legislation. There were made appropriate amendments in the paragraphs 14 and 15 of sec. X of the Land Code of Ukraine.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to Certain resolutions of the Cabinet of Ministers of Ukraine and the Recognition as Invalid the resolution of the Cabinet of Ministers of Ukraine dated August 25, 2004, № 1094” of 22.09.16, № 668 removed the differences in land management.
In particular, it is determined that the land management project that provides ecological and economic substantiation of crop rotation and lands’ ordering consists of the materials listed in Art.51 of the Law of Ukraine “On Land Management” of 22.05.03, № 858-IV. Now the land management project in this sphere does not require coordination and approval by the customer. In addition, it was abolished the requirement to conduct the state examination of land use documentation by StateGeoCadastre (the State Service of Ukraine for Geodesy, Cartography and Cadastre) (its territorial agencies).
Also, it was abolished the procedure for the development of land management projects on organization and establishment of the boundaries of territories of nature reserve fund, other environmental protection, health, recreational, historical and cultural destination. That is, documentation for land management is unified.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Regulations on the manufacture, storage, sale of excise duty stamps and labelling of alcoholic beverages and tobacco products” of 05.10.16, № 683 simplified life of companies − manufacturers and importers of alcoholic beverages and tobacco products. In particular, they were allowed to submit an application-calculation on the need for stamps in electronic form, as well as a copy of a payment document on the transfer of payment for stamps (but not its original).
Also, the sale of stamps to domestic manufacturers of alcoholic beverages and tobacco products will be carried out on the basis of documents submitted in electronic form.
The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on establishing a minimum term of lease of agricultural land plots, where hydrotechnical amelioration to be held” of 20.09.16, № 1532-VIII, having established that the conduction of the commercial agriculture production, farming, personal farming term, the lease of agricultural land plots of which is ground areas of ameliorated land and where hydrotechnical amelioration to be held, should not be less than 10 years.
Land lease agreement should establish the obligation of the tenant to invest in the development and modernization of appropriate drainage systems and engineering infrastructure facilities and promote their proper use.
The Verkhovna Rada of Ukraine adopted the Law of Ukraine “On amendments to some legislative acts of Ukraine on the legal plot of land lots, owners of which died” of 20.09.2016, № 1533-VIII, intended to regulate some aspects of the legal plot of land lots, owners of which died.
The document, in particular, provides for that in case of absence of heirs or executor trustee of heritage, which includes a land plot, is rural, village, city council at the location of such a land plot. This local council - manager will be entitled to hand over a land plot to rent up to the date of state registration of ownership of the heir to that plot or before the entry into force of a court decision on acknowledgment heritage as escheat.
Immovable property, which is a part of escheat, should be passed into ownership of the territorial community on the location of the immovable property (not to the territorial community of the place of opening the inheritance, as it was before).
The law comes into force on the day following the day of its publication, except for paragraph 7 of section I of this Law, which takes effect on January 1, 2017.
The Cabinet of Ministers of Ukraine by its Resolution “On Amendments to the Procedure for state registration (re-registration), deregistration of cars, buses, and self-propelled vehicles constructed on chassis of cars, motorbikes of all types, brands and models, trailers, semi-trailers, sidecars, and other equal to them vehicles and scooters” of 05.10.16, № 687 defended the rights of motor vehicle owners who lost their cars or motorbikes. In particular, if there is information about the arrest or search of the vehicle, its registration should not be conducted.
Verification of compliance with the construction, the fact of car search, restrictions on its alienation should be carried out in automated database about wanted vehicles, the data bank of the General Secretariat of Interpol, the State Register of movable property encumbrances. Also, it should be verified the information about documents confirming identity and citizenship of Ukraine, and the registration of residence for the Unified State Register of demographic.
It is forbidden deregistration and/or re-register in the name of a new owner of vehicles that are wanted or about which the Unified State Register of MIA has information about arrest or prohibition of deregistration and/or re-registration on the basis a court decision or regulation of the state enforcement officer.
In order to deregister or re-register a vehicle in the name of a new owner, regarding which there is information about alienation restrictions in the State Register of Encumbrances of movable property, it is required to get the written consent of encumbrancer (mortgagee). However, this does not apply to cases of transfer of ownership of the vehicle in inheritance, succession or allocation of shares in the joint property.
The Cabinet of Ministers of Ukraine (hereinafter − CMU) by its Resolution “On the effective use of state funds” of 11.10.16, № 710 took measures to economical use of state funds, for which the state power bodies maintained companies established by them as well as institutions and organizations financed by state budget funds.
Measures for efficient and rational use of budgetary funds include, in particular:
- establishing and accrual of increases to fixed official salary (rates), allowances, additional payments, benefits, rewards, bonuses and other incentive payments to employees are allowed exclusively within payroll approved in general and special funds of the budget or their income derived from business activities;
- termination of the purchase of passenger cars, mobile phones;
- use for service of only one car, unless otherwise provided by law or act of government, and for the transport service of officials it is allowed to involve passenger cars in the amount not exceeding the limits established by the CMU. As a result of this exempted passenger cars are to be sold;
- termination of the costs for exhibitions, fairs, congresses, symposia, congresses at the expense of the general fund budget. It is recommended to finance them at the expense of contributions of the participants, sponsors, finances of special fund of estimates of budget institutions that take part in them, and other sources not prohibited by the law;
- termination, without government permission, of formation of new budget organizations other than bodies, institutions and establishments of the National Police.
Transfer Pricing
The State Fiscal Service of Ukraine in its letter “On the recognition of business transactions between the commission agent and the commission principal as residents, resident and non-resident as controlled” of 13.09.16, № 19914/6/99-99-15-02-02-15 explained in what cases the transaction on the sale of goods of the principal-resident by the commission agent-resident should be considered controlled for transfer pricing purposes, if the buyer - a non-resident.
In particular, business transactions between the commission principal-resident and the commission agent-resident should not be considered as controlled regardless of whether they are related parties or not.
Considering that the sale of goods on the conditions of commission does not provide for transfer of ownership on such goods from the commission agent-resident to the buyer − non-resident (because the first is not the owner of the goods), these transactions also are not classified as controlled.
In the case of achieving the criteria established by sub-para. 39.2.1.7 of the Tax Code of Ukraine (hereinafter − TCU), the transactions of goods sale of the commission principal-resident to the buyer − non-resident are to be considered as controlled, if:
- a buyer - non-resident is a connected person to the commission principal-resident;
- country of residence of the buyer − non-resident is included in the list of countries (territories) approved by the Cabinet of Ministers of Ukraine at the time of the transaction.
In this case, the commission principal-resident is obliged to submit in due time a report on the controlled transactions carried out during the reporting tax period.
Mobilization and ATO
The Ministry of Internal Affairs of Ukraine (hereinafter – MIA) by its order “On approval of the Commission of the Ministry of Internal Affairs of Ukraine for consideration of materials on the recognition of combatants, war veterans” of 26.08.16, № 868 determined the powers and composition of the Commission of MIA for consideration of materials on the recognition of public officials, MIA employees and employees territorial agencies of, institutions and enterprises within its sphere of control as combatants, war veterans.
Thus, the decision on granting the status of combatants is taken on the basis of the documents concerning:
- direct involvement in the performance of ATO tasks in the areas of its implementation;
- direction (arrival) on a business trip in the area of the ATO;
- stay in the areas of the ATO to implement the tasks for the protection of the independence, sovereignty and territorial integrity of Ukraine by means of direct participation in the ATO, ensuring its implementation.
Such facts can confirm excerpts from the orders of the head of the Antiterrorist Centre at the Security Service of Ukraine on bringing to conduct ATO, directives, regulations, business trip certificates, operational tasks, combat actions journals, combat reports, dislocations, books of duties, schedules of line of duty, reports, information, dispatches, special materials (service) of investigations on the facts of injuries, as well as other official documents issued by the state bodies, which contain sufficient evidence of the direct participation of the individual in the performance of the ATO tasks in areas of its implementation.
Within a month after the completion of the ATO tasks in its area, the heads of departments, subordinated to which the MIA personnel did military service or worked, should submit to the MIA Commission the mentioned above documents and a certificate of the direct participation of a person in the anti-terrorist operation, ensuring its implementation and protection of independence, sovereignty and territorial integrity of Ukraine.
If the place of permanent deployment of division or institution, organization is located directly in the area of the ATO, the heads of the departments should submit documents to the Commission for consideration within one month after the appointment of public officials, employees of MIA to the appropriate positions.
The Cabinet of Ministers of Ukraine by its Resolution “Issues of housing provision to families of fallen soldiers, who took part in anti-terrorist operations, and disabled people of group I−II among the soldiers, who took part in the indicated operation, and are in need of better housing conditions” of 19.10.16, № 719 defined the mechanism of target cash compensation for the housing purchase for families of fallen ATO participants, and disabled people of group I−II among ATO participants.
This mechanism provides for the possibility to independently choose the acceptable housing and purchase it at the expense of state-provided monetary compensation. In addition, the mentioned people at their request can receive monetary compensation for their rightful housing. This decision was made because of cases of dissatisfaction with housing, acquired by the bodies of state government.
The Ministry of Defence of Ukraine in its letter “On the provision to employer of certificates of exemption of a soldier from military service” of 24.06.16, № 116/9/5/78-16 indicated that the employer can obtain the information on the exemption from military service by sending a request to the military office. The legislation does not provide conditions in order to inform on this matter.
In addition, employers are not informed about the death, captivity, missing military personnel of the Armed Forces of Ukraine. It is reported only to family members and relatives of the soldier through district (united, municipal) military commissariat according to the Guidelines for the organization of the account of the Armed Forces of Ukraine approved by the Ministry of Defence of Ukraine of 26.05.14, № 333.
Financial Market
The National Bank of Ukraine (hereinafter − NBU) by its resolution “On amendments to certain legislative acts of the National Bank of Ukraine” of 13.10.16, № 391 improved the methodology for calculating of the official hryvnia exchange rate to US dollar, based on which official exchange rates of hryvnia to be calculated to other foreign currencies.
Heretofore, official exchange rate was calculated as average rate of buyers and sellers. In other words, it reflected the rate of transactions between banks, banks and their customers, the banks and the National Bank, the National Bank and its clients. Further, the calculation will include only agreement between the banks, and the banks and the NBU.
The National Bank will daily establish the official hryvnia rate to:
- currencies of 30 countries of major trading partners of Ukraine on the results of the first half of 2016 (including 20 currencies included in Group I of the Classifier of foreign currencies and precious metals, approved by the NBU of 04.02.98, № 34, hereinafter – Classifier);
- other four currencies of Group I of the Classifier, which are not currency of key trading partners;
- four banking metals.
Currently, the National Bank daily establishes official hryvnia rate to 25 foreign currencies included in Group I of the Classifier and the list of major trading partners and four banking metals.
The National Bank of Ukraine (hereinafter – the NBU) by its Resolution “On approval of the Approval of Regulations on application by the National Bank of Ukraine of penalties for violation by the banks of requirements of the Law of Ukraine “On the financial restructuring” of 13.10.16, № 392 determined the procedure for the application of sanctions to banks for violation of the Law of Ukraine “On the financial restructuring” of 14.06.16, № 1414-VІІІ (hereinafter − the Law on Restructuring).
The NBU impose these sanctions on the basis of proposals received from the debtor and the supervisory board, secretariat or the arbitration committee.
The decision to apply sanctions to the bank will be made within 30 days upon receipt from the initiator of full package of documents confirming admitted by the bank violation of the Law on restructuring.
The initiator puts a proposal for the application of sanctions to the bank in hard copy signed by an authorized person. It should add a description of the violations done by the bank and copies of confirmed documents (if any), certified by the initiator.
Fined bank should pay the fine within the period specified in the decision to impose sanctions. And the bank should within five working days from the date of payment of fine notify the NBU in written form and provide a certified copy of the document certifying such payment. And if it won’t be done – the NBU will bring to the Court legal action for recovery from the bank of the amount of fines.
The NBU Board Resolution “On Approval of Regulations on application by the National Bank of sanctions for violation of requirements of the Law of Ukraine by Banks “On the financial restructuring” of 13.10.16, № 392 came into force on 19.10.16.
The Other Things
The Ministry of Social Policy of Ukraine by its order “On approval of the State standard of social services of mediation” of 17.08.16, № 892 approved the State Standard of social mediation service. It determines the content, volume, conditions and procedures for the provision of social mediation services, of indicators its quality for entities of various forms of ownership and management, which provide such a service (specialists in social work, social workers, psychologists).
It should be recalled that mediation is a process where a neutral third party (the mediator) helps to solve the conflict contributing to the development of a voluntary agreement between the parties, which conflict. The mediator facilitates the process of dialogue between the parties, helps to understand deeper their positions and interests, looks for effective ways to solve the problem by allowing the parties to come to an agreement.
This norm is aimed to organize the provision of social services to persons/families that are in difficult circumstances, monitoring and control of the quality of their provision. They will be provided free of charge or with the differentiated payment.
The social services will be provided based on the application of the recipient of a social service (legal representative), which should be considered within 10 working days and making a decision on the provision of services.
The State Fiscal Service of Ukraine by its letter “On determination of transactions as operating leases” of 03.10.16, № 21417/6/99-99-15-02-02-15 explained: if the lease (rental) agreement in its terms referred to financial leasing, but economic entities at the conclusion of the lease (rental) agreement identified it as operating lease, then the leasing (rent) should be considered as operational. However, the parties have no right to change the status of the transaction before the end of the contract.
It should be recalled: according to sub-para. 14.1.97 of the Tax Code of Ukraine, leasing (rental) is considered to be financial, if the leasing (rental) agreement includes one of the following conditions:
- subject to leasing should be transferred for a period during which it is depreciated not less than 75% of its initial cost, and the tenant is obliged under the lease agreement and for its duration to buy the subject to leasing with subsequent transfer of ownership from the lessor to the lessee at price determined in this leasing contract;
- balance (depreciable) sheet value of the subject to leasing at the time of expiry of the lease agreement is not more than 25% of initial cost of price of the leased subject effective at the beginning of the term of the lease agreement;
- amount of lease (rent) payments from the beginning the lease term is equal to the initial value of the leased subject or exceeds it;
- property that is transferred to the finance lease, made at the request of lessee (tenant) and after expiry of the lease agreement cannot be used by persons other than the lessee (tenant), because of its technological characteristics and qualitative.
The Auditors' Chamber of Ukraine by its decision “On Amendments to Regulation on the continuous improvement of professional skills of auditors of Ukraine” of 29.09.16, № 330/10 stated in a new version of the Regulation on the continuous improvement of professional skills of auditors of Ukraine. The updated document provides for that teaching in centres for preparing auditors to control testing of not less than 40 hours within a calendar year (previously − at least 20 hours a year) can be accounted against passing the control tests of the auditor.
Also, it is recorded that software module or some of its elements have the right to develop authoring team, education institutions, and individual writers. Contracts for development of software module or its individual elements should be concluded on the results of the competition in a manner approved by the Auditors' Chamber of Ukraine.
The Deposit Insurance Fund (hereinafter – DIF) by its decision “On Amendments to the Regulation on the procedure of public information about the system of the Deposit Guarantee and the Procedure for protection of rights and legally protected interests of investors by the Deposit Guarantee Fund” of 12.09.16, № 1809, amended the Procedure for protection of rights and legally protected interests of investors by the DIF. It was recorded that the accrual of interest on deposits ceased on the day of the procedure of withdrawal by the bank’s fund from the market (previously it was about the end the accrual of interest on the day preceding the start of this procedure). And in case of making decision by the national Bank on the recall of banking license and liquidation of the bank due to reasons defined in sec.2 of Art.77 of the Law of Ukraine “On banks and banking activity”, the accrual of interests should be ceased on the day of adoption of the decision.
