Publication

10.04.2017

REVIEW OF THE MAIN LEGAL NEWS FOR BUSINESS (№3/2017)

Author: Lyubov Ignatova, Oksana Tropec,Anton Prosviriakov
Source: www.dmp.com.ua

Lawyers of LF «Dmitrieva & Partners» have prepared the list of the main legal news for business .

Among the main news:

The procedure of carrying out currency transactions has been simplified

 On March 22, 2017 the NBU Board Resolution number 15 of 28th February 2017 came into force, which provides for the simplification of the procedure of carrying out transactions of purchase of foreign currency/transfer of funds outside Ukraine in favour of non-residents and which changed the order of currency control.

The procedure of the movement of cash and precious metals across the customs border of Ukraine has been specified

By Resolution dated 21.03.17 no. 24 the NBU amended the Instruction on the movement of cash and precious metals across the customs border of Ukraine approved by the NBU Resolution of May 27, 2008 no. 148.

From now on the individual-resident, who imports into Ukraine or exports from Ukraine cash in the amount exceeding the equivalent of EUR 10,000, must submit at the border, along with the document confirming the withdrawal of cash from accounts in banks (financial institutions), the receipt of carrying out of a currency exchange transaction with this cash. The requirement of a written declaration to the customs authority of the relevant amount of cash remains in force.

Currency regulation as of 21.03.2017

I. Individuals (non entrepreneurs) 

Cash

The export of currency in cash for any purposes does not require an individual license. 

According to the Instruction on Shifting of Cash and Precious Metals across the Customs Border of Ukraine (the NBU resolution of May 27, 2008 no. 148) the individual has the right to import into Ukraine and export from Ukraine without a written declaration the cash in the amount not exceeding the equivalent of EUR 10,000. Shifting of the cash in the amount exceeding the equivalent of EUR 10,000 is carried out only subject to the written declaration to the customs authority and if there are the documents confirming the withdrawal of the cash from accounts in banks (financial institutions). The period of validity of such documents is 30 days from the date of issue....

The rate of the tax paid by individuals on dividends has been reduced

The Verkhovna Rada of Ukraine has lowered the rate of the tax on personal income from dividends by half - from the current total personal income tax rate of 18% to 9%.

Changed the order of receiving credits, loans in foreign currency by residents from non-residents and giving credits, loans to non-residents

By Resolution no. 26 of 23.03.2017 the National Bank of Ukraine amended the legislative acts that regulate the order of receiving credits and loans in foreign currency by residents from non-residents.

The main changes to the Regulation on the Order of Receiving Credits, Loans in Foreign Currency by Residents from Non-Residents and Giving Loans by Residents to Non-Residents approved by the Resolution of the Board of the National Bank of Ukraine of June 17, 2004 no. 270, registered with the Ministry of Justice of Ukraine on July 15, 2004 under number 885/9484 (hereinafter – the Regulation):

The issues of transfer pricing

Amendments to the Order of the Preliminary Approval of Prices in Controlled Transactions, Based on the Results of which Contracts are Concluded.

By decree dated March 29, 2017 no. 194 the Cabinet of Ministers of Ukraine amended the Amendments to the Order of the Preliminary Approval of Prices in Controlled Transactions, Based on the Results of which Contracts are Concluded which have unilateral, bilateral and multilateral nature, for the purposes of transfer pricing, approved by decree of the Cabinet of Ministers of Ukraine dated July 17, 2015 no. 504.

Regarding the recognition of related persons

By letter no. 3558/M/99-99-15-02-02-14 of 16.03.2017 the State Fiscal Service provided clarification on the issue of connection of persons.

According to sub-cl. 14.1.159 of cl. 14.1 of art. 14 of the Code related persons are a legal persons and/or individuals, the relationship between whom may affect the conditions or economic results of their activities or the activities of persons whom they represent, taking into account such criteria, in particular, for individuals that is a husband (wife), parents (including adoptive parents), children (adults/minors, including adopted ones), and whole and not whole brothers and sisters, guardian, custodian, children under guardianship or custody. 

A seal is no longer required

The Law "On Amendments to Some Legislative Acts of Ukraine Regarding the Use of Seals by Legal Entities and Individuals - Entrepreneurs" introduces the following changes...

Transactions of contribution by the company’s member of fixed assets (equipment) to the authorized capital have been recognized as controlled

By its letter dated 09.03.2017 no. 5898/7/99-99-14-01-02-17 the State Fiscal Service of Ukraine informs that, since transactions of the capital increase by contribution by the company’s member  of fixed assets (equipment) affect (may affect) the formation of taxable income, such transactions fall within the definition of controlled ones according to Art. 39 of the Tax Code of Ukraine...

As regards the calculation of a single fee by the person carrying out an independent professional activity

By its letter dated 13.03.2017 no. 3424/I/99-99-13-02-03-14 the State Fiscal Service of Ukraine informs that according to p. 5 of the first part of art. 4 of the Law "On the Collection and Accounting of a Single Fee for Obligatory State Social Insurance" (hereinafter - the Law) persons who carry out an independent professional activity, in particular, scientific, literary, artistic, educational or teaching activity, as well as medical, legal practice, including advocatory, notarial activity, or persons who carry out religious (missionary) activities, other similar activities and receive income from this activity, are single fee payers...

Regarding the possibility of staying by associations of enterprises (corporations, associations, consortia, etc.) in the Register of Nonprofit Institutions and Organizations and applying of peculiarities of income taxation to such an association

 By its letter dated 16.03.2017 no. 5263/6/99-99-15-02-02-15 the State Fiscal Service of Ukraine informs that in the case of formation of a business association in the form of a corporation, consortium, concern, which aims to commercial economic activity the requirements that apply to non-profit organizations (sub-p. 133.4.1 of p. 133.4 of art. 133) cannot be met, because...

Changes to the Regulation on the Order of Carrying out by Banks of the Analysis and Check of Documents (Information) on Financial Transactions and their Participants

According to the NBU Resolution of 02.03.2017 no. 18 the amendments have been introduced to the Regulation on the Order of Carrying out by Banks of the Analysis and Check of Documents (Information) on Financial Transactions and their Participants dated 15.08.2016 no. 369...

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