Recent News

The State Regulatory Service of Ukraine, in cooperation with the Ministry of Economic Development and Trade of Ukraine and with the support of the Office of Effective Regulation (BRDO), have launched a pilot module for planning activities of state control of IAS SSC. With its help, the draft of Implementation Plan of the comprehensive measures of state supervision (control) for 2018 (hereinafter - the Plan) has been formed in accordance with the proposals of the supervisory bodies. The official site of the pilot module for planning the measures of state supervision (control) IAS SSC provides an opportunity to check whether a particular business entity is included in the draft plan for the next year. It is available at the following link: http://www.ias.brdo.com.ua. You can find an interested enterprise by its name or by the code of the USREOU. It is important to note that you can refuse from the implementation of a comprehensive planned measure of state supervision (control), by writing to the SRS. In this case, the inspection of business entity will be held according to the individual annual plans of the supervisory bodies. The planned activities are carried out in accordance...

On October 23, the international rating agency Standard & Poor's revised the credit rating of the Bank of Cyprus, having upgraded it to “B” and changed the forecast from “stable” to “positive”. In addition, S&P announced it expected the further increase of the bank credit rating in the next 12 months, subject to continued consolidation of public finances and economic recovery at the same pace. The forecasts of the agency for the period from 2017 to 2020 are very optimistic: it is expected that GDP of Cyprus will be increased by 3% per year. Commenting on the upgrade, S&P noted that the previous estimation was due to a number of problems that the Bank of Cyprus faced and they mainly related to the need to “reduce non-performing loans and return to sustainable profitability”, as well as low asset quality. Officially, Cyprus is still in the “junk” category, that is, it does not correspond the investment level, being a step lower according to S&P assessment and three steps lower according to Moody's and Fitch (“Caa1” and “B-“ respectively). You can find out about the features of the rating systems of the three largest special agencies...

On October 23, the Draft Order of the Ministry of Finance of Ukraine “On Approval of changes in the Criteria for risk assessment sufficient to stop the registration of the tax invoice/adjustment calculation in the Unified Register of Tax Invoices” was published. According to the explanatory memorandum, the Draft Order has been designed to provide the compliance with the rights, legitimate interests and equal conditions of taxpayers in applying the provisions of the TCU in case of "blocking", as well as to improve the criteria for monitoring the TI and CA, implemented by the SFS. What are the key innovations? First, two new criteria have been added to the list of criteria: availability of court judgment against an official or persons of business entity under articles 205, 212 of the CCU; AC compiled by the supplier of goods/services to the TI drawn up on the recipient - VAT payer if there is a change in the cost of goods/services more than twice and/or a change in the nomenclature of goods/services (for the codes of goods according to the UCG EEA, the change of the first four digits of the code, and for service codes in accordance with the State Classification of products...

On September 2, 2017, an amendment to the Electronic Communications Act (hereinafter – “the Amendment”) came into effect in the Czech Republic. The most significant changes relate to customer contracts regulated by Section 63 of the above-mentioned Act: now they are more preferable for customers and provide them with greater protection. Thus, a stipulated notice period, which remains a compulsory part of customer contract, must not exceed 30 days now. We remind that previously, operators were free to exercise their discretion to set the length of notice periods. In accordance with the innovations, customer contracts must specify the possibility and extent of potential unilateral changes and the manner in which they must be notified to the other party. Previously, this option was only available if the change was substantial and would necessarily deteriorate the customer’s position. Thus, customers must not only be acquainted with any one-sided amendments to their contract, but also have to be given the option to cancel the contract without having any penalty imposed upon them. This is in contrast to the previous requirements, that allowed operators to extend time-limited...

The four parties forming the new government of the Netherlands have signed an official coalition agreement - the Programme of Action for 2017-2021, which includes important changes in tax legislation. The innovations in the system of corporate and personal income taxation are aimed at increasing the competitiveness of the Netherlands and preventing money laundering. The agreement assumes that the standard corporate tax rate will be gradually reduced from 25% to 21%, and a 20 percent rate of corporate income tax of up to 200,000 euros ($ 237,000) will be reduced to 16%. Another change is the partial cancellation of a 15 percent tax on dividends in order to increase the volume of foreign investment. However, to counteract the creation of “mailbox companies”, the government plans to introduce a withholding tax on interest payments and royalties in jurisdictions with a low level of taxation. Confirming its commitment to the OECD recommendations on BEPS and promoting the equity participation financing, the coalition intends to limit deductions for interest payments. The authorities also support the creation of the blacklist of jurisdictions with improper...

On July 14, 2017, the Parliament of Cypriot amended the current legislation on granting tax resident status to foreigners. We should remind that foreign tax residents of Cyprus benefit from the agreements on avoidance of double taxation signed by the state, and they also benefit tax exemptions when receiving dividends, interest and royalties. Until recently, the main condition for obtaining this status was staying on the island for at least 183 days a year. The adopted innovation provides for the possibility for individuals to become a Cyprus tax resident, staying on its territory for only 60 days a year, while observing a number of conditions. So, in order to obtain a Cyprus tax residency under the 60-day rule, which took effect on January 1, 2017, you must: remain in Cyprus for at least 60 days during the tax year in question; not reside in any other single state for a period or periods exceeding 183 days; not be tax resident in any other state; carry out business activities, work in Cyprus or be a director of a company that is tax resident in Cyprus at any time during the tax year in question (at the same time, if a person ceases to conduct business or employment during...

The National Bank of Ukraine continues to simplify the business environment and the work of banking institutions in accordance with the requirements of the Law of Ukraine “On Amendments to certain legislative acts of Ukraine on the use of seals by legal and physical persons-entrepreneurs”. The changes are made to a number of NBU regulations providing for the removal of some bureaucratic obstacles. So, in accordance with the innovations, the clients of the authorized banks that wish to conduct a currency transaction will no longer need to seal the documents which are necessary for carrying out this transaction. In addition, the demand regarding the certification with the seal of the documents submitted to the NBU is canceled. And, in a number of cases, it is no longer necessary to notarize the originals or copies of the documents for conducting currency transactions. At the same time, the translations of contracts and other documents submitted by the banks and their clients to the National Bank still must be certified by a notary. These steps are fixed by the Decree No.102 of October 10, 2017 “On Amendments to certain legal acts of the National Bank of Ukraine” and entered...

The NBU continues the gradual mitigation of exchange restrictions, as it is reported on the website of the regulator. We remind that until recently, the transfer of foreign currency for the placement of guarantee deposit outside Ukraine for the provision of transactions has been allowed only to banking institutions participating in the international payment systems. Now, according to the decision of the Board of the National Bank, such operations on the basis of an individual license of the NBU can be carried out by both banks and non-bank financial institutions. In addition, the procedure for the application of exceptions to the prohibition of early loan repayment and loans in foreign currency received by the residents of the country from non-residents has been specified. Such exceptions include all payments under certain credit agreements or loan agreements, that is, the payments on the principal amount, taking into account interest and other payments provided for under the agreement. It is expected that the innovations, fixed by the Resolution of the NBU Board of October 10, 2017 No.101 and entered into force on October 12, 2017, will contribute to the creation of favorable...

On Monday, October 9, Deputy Minister of Finance of Ukraine Sergey Marchenko and the Minister of Economy of the Republic of Turkey Nihat Zeibekci signed the Protocol on amendments to the Agreement on avoidance of double taxation between the two states. The adopted innovations will allow physical and legal persons to avoid paying double taxes on the income received in the territories of Ukraine and Turkey. This can be achieved with the help of the distribution of the right to tax certain types of income depending on the place of their origin between the two countries, as well as by taking into account the taxes paid in the territory of another state in the tax obligations of the taxpayer of one state. It is expected that the changes will create better conditions for the investors of both jurisdictions and they will increase the entrepreneurial initiative. The settlement of the issue of international taxation of income in bilateral relations between Ukraine and Turkey will help eliminate tax discrimination, as well as establish cooperation between the tax authorities of the states and the exchange of tax information. The signed Protocol provides: expansion of the meaning of the...