Tax disputes: News — Finance Business Service

Government Approved the Rate on Installment Plan on VAT Payment for the Import of Production Equipment

Published: 23.02.2018 | news

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#Tax disputes #VAT

On February 21, 2018, the Resolution of the Cabinet of Ministers of 7.02.2018 No. 85 came into force, approving the procedure for granting an installment plan for VAT payment when importing the equipment for own production into Ukraine (hereinafter - Procedure) in accordance with clause 65, subsection 2, section XX of the TCU, No.2245-VIII of 07.12.2017. The Procedure provides that in order to receive an installment plan for the payment of value-added tax, when importing equipment into the customs territory of Ukraine, the payer is obliged to submit an application to the customs office, which form must be also approved by the above-mentioned resolution. The application must specify the term of the installment plan, name, quantity, cost and code of the the UCG FEA of the imported equipment, its location, the purpose of importation, the CFEA of the payer, etc. The payer must attach the following to the application: business project, business plan or other document with a detailed description of the technological process (with economic calculations) and expected performance; available conclusions of state bodies, expert institutions, organizations, state standards and...

The European Union Intends to Exclude 8 Countries from the “Black List” of Offshore Zones

Published: 17.01.2018 |

Tags:

#Black list #EU #Offshores #Tax disputes #Офшори

The European Union is discussing the possible exclusion of eight countries from the “black list” of offshore zones. It is reported by the IA Reuters, referring to the documents at its disposal. According to the agency, Panama, UAE, South Korea, Barbados, Grenada, Macau, Mongolia and Tunisia can be removed from the list. Such a proposal is justified by the fact that these countries have agreed to change their tax policy. In addition, an exclusion from the list of Bahrain was discussed, but in the end, it was decided to leave it on the list. On Tuesday, January 16, the issue was discussed at the ambassadorial level. And next week the proposal will be considered by the EU finance ministers. In early December, the last ones published a “black list” of countries that did not want to cooperate with the EU in the field of tax reporting, as reported by the UNIAN. The list includes 17 countries, namely: American Samoa, Bahrain, Barbados, Grenada, Guam, Macau, Marshall Islands, Mongolia, Namibia, United Arab Emirates, Palau, Panama, Saint Lucia, Samoa, Trinidad and Tobago, Tunisia and South Korea. Offshore zones are on the territory of the most part of these states. We remind that...

Campaign “Declaration of incomes of citizens – 2018” Has Started

Published: 11.01.2018 | news

Tags:

#Tax disputes #Tax reporting

As the main office of the SFS in Kyiv reports, from January 1, 2018, the campaign of declaring incomes of citizens, received during 2017, has started which will last until May 1, 2018. We would like to note that the citizens are obliged to submit an annual Declaration on Property and Income in case if they received in 2017: separate incomes, from which income tax on natural persons was not withheld in the calculation and payment during the year 2017; income from natural persons who do not have the status of tax agents (for example, income from the provision of real estate for rent to a natural person who is not a subject of business activity); foreign incomes; other incomes, which declaration is provided by the current legislation. Such citizens are obliged to deposit the amount of such income in the total annual taxable income and submit before May 1, 2018 the annual tax declaration on the property status and income based on the results of 2017, as well as to calculate and pay a tax on such income at a rate of 18% to the budget until August 1 2018 and military duty at a rate of 1.5%. We also remind that citizens willing to exercise their right to a tax discount based on the...

The Cabinet of Ministers Has Approved a List of States (Territories) Where the Operations with Residents are Recognized as Controlled for the Purposes of TP

Published: 28.12.2017 |

Tags:

#Seminar #Tax disputes #Tax reporting #Taxation

On December 27, 2017, the Cabinet of Ministers of Ukraine approved a new list of states (territories) where the operations with residents are recognized as controlled for the purposes of transfer pricing. It was due to the recent changes in the selection criteria. The new list was formed according to the following criteria: state (territories) where the corporate income tax rate is 5 and more percentage points lower than in Ukraine (that is, below 13%); states with which Ukraine has not concluded international agreements containing provisions on the exchange of information; states which competent authorities do not provide timely and complete exchange of tax and financial information for the requests of the SFS. When considering the criterion of the rate of corporate income tax, not only basic but also preferential rates for individual industries, territories, and types of activities were taken into account. Operations with a counterparty registered in the state (in the territory) entered in the approved list are recognized as controlled ones for the purposes of transfer pricing from the 1st of January of the reporting year, following the calendar year in which the states...

Procedural Codes will Undergo Another Changes

Published: 21.12.2017 |

Tags:

#Tax disputes #Tax exemptions #Taxes

The Verkhovna Rada of Ukraine has registered changes in the Code of Civil Procedure, the Code of Economic Procedure and the Code of Administrative Court Procedure provided for by three relevant draft laws. We remind that on December 15, the Law which had already been amended by these codes came into effect. However, as it was noted in the explanatory notes to the latest drafts, it was adopted in violation of the regulation. In addition, the Law contains a number of contradictory norms, on the correction of which the proposed changes are aimed. In general, it is proposed to rewrite the editions of the CCP, CEP and CACP, which have just come into effect. During the consideration of the procedural codes in the parliament, none of the amendments proposed by the deputies was adopted, although several thousand amendments were submitted at the stage of their preparation. Instead, before voting for the Law as a whole, only amendments were brought to a vote approved by the profile...

Sales Threshold without Cash Registers Has Been Raised to 250-500 thousand UAH per Year

Published: 20.12.2017 |

Tags:

#Tax disputes #Tax planning #Taxes

The Cabinet of Ministers of Ukraine has increased the threshold of the annual sales volume without using the RCT (registrar of clearing transactions) from 75-200 thousand UAH up to 250-500 thousand UAH per one structural subdivision of the subject, depending on its organizational form and activity. Such changes are provided for by the Resolution of the CMU, as reported by the information agency “Interfax-Ukraine”. As noted, it will enable business entities that have several separate objects of trade (provision of services) not to use the RCT in the event that none of them exceeds the threshold of clearing transactions. According to the explanatory note, which the IA possesses, the Resolution also provides that the enterprises which annual income exceeds UAH 1 million are required to use cash registers, regardless of the type of their activity. The document does not apply to economic entities that carry out retail trade of excisable goods, as well as technically complex household goods. The Resolution defines a list of activities that are exempted from compulsory use of the RCT, in particular the provision of public services on the territory of villages. According to the State...

On December 15, Amendments to the Procedure for Issuing Individual Licenses of the NBU for Transfer of Foreign Currency Abroad Came into Effect

Published: 15.12.2017 | news

Tags:

#Tax disputes #Tax exemptions #Taxation

According to the report of press service of the National Bank of Ukraine, today, on December 15, the amendments to the procedure for issuing individual licenses for the transfer of foreign currency abroad came into effect. The innovations provided by the Resolution of the Board of the NBU No.130 of December 14, 2017 “On Amendments to the Regulations on the Procedure for issuing individual licenses for the transfer of foreign currency outside Ukraine for the payment of bank metals for certain currency transactions”...

Automatic Blocking System of TI Will Be Temporarily Suspended

Published: 13.12.2017 |

Tags:

#Tax disputes #Tax exemptions #Taxation #Taxes

The changes provided by the amendments to the draft Law “On Amendments to the Tax Code of Ukraine regarding the Balance of Budget Revenues in 2018” has been made in the procedure of the blocking system of tax invoices. According to the announcement made on December 7, 2017, the following has been done: 1. Clause 74.2 of the TCU has been deleted, which stipulates that the URTI ensures constant automated monitoring of the compliance of TI/AC with the criteria for assessing the degree of risk sufficient to suspend the registration. This provision will come into force on the day following the day of the publication of the Law. It is also noted that, within two months from the date of entry into force of the Law, the Cabinet of Ministers must: determine the procedure for suspension of the registration of TI/AC in the URTI in accordance with clause 201.16 of the TCU; ensure the revision and bringing of the normative legal acts in compliance with this Law by the ministries and other central executive bodies. In addition, the Cabinet is obliged, within a period of three months from the date of entry into force of this Law: to adopt the normative legal acts which are necessary...

Ukraine joined the global register of beneficial owners

Published: 06.09.2017 |

According to the news of the Internet portal Censor.NET, recently the Prime Minister of Ukraine Vladimir Groysman has made an announcement in Facebook regarding the opening a free access to the database of beneficial owners of the companies in the state. With common efforts of the State Agency for Electronic Governance and the Ministry of Justice, the information was made public on the Unified State Open Data Portal. According to words of the head of the government, this decision will contribute to building a transparent and effective state, as well as the development of commercial and public projects. The open data can be used for the analysis by the media and the public for the purpose of public control, as well as serve as a material for the creation of new IT projects that will work for the benefit of the national economy and will be useful to many Internet users. Vladimir Groysman noted that our country was the first in the world to join the Global Register of Beneficial Owners, initiated by the international anti-corruption organization Transparency...

The “blocking” criteria and conditions for submitting documents to the SFS have undergone changes

Published: 05.09.2017 |

On July 21, 2017, the Ministry of Finance of Ukraine approved changes to the Criteria for assessing the degree of risks that is sufficient to stop the registration of a tax invoice / adjustment calculation in the Unified Register of Tax Invoices. The innovations will come into force at once after the official publication of the Order of the MFU No. 654 by which they are stipulated. The changes mainly concerned the subparagraph 1 of the paragraph 6 of the Criteria, which will introduce the following: "The volume of delivery of goods / services specified in the tax invoice / adjustment calculations submitted for the registration in the Register is 1.5 times greater than the amount that equals to the remainder of the difference of the volume of the acquisition in the customs territory of Ukraine of such goods / services (except for the volume of purchase of goods / services on the operations exempted from taxation and subject to taxation at zero rate) and / or import of such goods into the customs territory of Ukraine specified since January 1, 2017 in the received tax invoices / adjustment calculations, registered in the Register and customs declarations and the volume of...

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