REVIEW OF THE MAIN LEGAL NEWS FOR BUSINESS (№4/2017)
Lawyers of LF «Dmitrieva & Partners» have prepared the list of the main legal news for business.
Among the main news:
Regarding personal income tax
In letter dated 19.04.2017 no. 8275/6/99-99-13-02-03-15 the SFS points out some features of personal income taxation. The object of taxation of an individual - resident is the total monthly (annual) taxable income.
Income tax and formation of the authorized capital
In letter dated 05.04.2017 no. 7063/6/99-99-15-02-02-15 the SFS states that according to the Tax
Code of Ukraine (hereinafter - the Code) the taxable income is the income from the source of origin
in Ukraine and abroad, which is determined by adjusting (increase or decrease) of the financial result before taxation (profit or loss), determined in the financial statements of the company in accordance with the national regulations (standards) of accounting or IFRS, by the differences arising in accordance with the provisions of the Code.
As regards the legality of providing a financial assistance by non-profit organizations to their members
By its letter dated 05.04.2017 no. 7101/6/99-99-15-02-02-15 the State Fiscal Service of Ukraine provided clarification on the legality of providing a financial assistance by non-profit organizations to their members and noted that if the public organization of invalids which included by the supervisory authority in the relevant Register is a non-profit organization, it has the right to use its own income (profits) exclusively for financing the expenditure for its maintenance, realization of the aim (goals, objectives) and areas of the statutory activities without distribution of such income (profits) or their parts among founders (participants), members of such an organization, employees (except for their remuneration, assessment of the single social fee), members of management bodies and other related parties.
As regards the possibility of providing a non-repayable charitable assistance by a
The State Fiscal Service of Ukraine published the letter, in which the issue regarding the possibility
of providing a non-repayable charitable assistance by a representative office was considered (letter of the SFS of 10.04.2017 no. 7383/6/99-99-15-02-02-15). The said letter has not given a clear answer to the asked question, but it has been noted that the Tax Code of Ukraine does not impose restrictions on the provision by the representative office of a non-resident of non-repayable charitable assistance to charitable organizations in the territory of Ukraine.
Another easement of the currency control
Next changes relating to the liberalization of the currency control were approved by Resolution of the NBU Board dated April 4, 2017 no. 30 "On Amending Resolution of the National Bank of Ukraine of December 13, 2016 no. 410" which entered into force on April 5, 2017.
Simplification of the order of the analysis and verification by banks of documents during
registration of contracts of external financing
Resolution of the NBU Board no. 31 dated April 7, 2017 amended the order of performing by banks of the analysis and verification of documents (information) on financial transactions and their participants.
Regarding the application of tax legislation rules when adjusting the price of a controlled transaction carried out in 2016
In letter dated 10.04.2017 no. 7384/6/99-99-15-02-02-15 the SFS informs that in the case of the application by a taxpayer when carrying out controlled transactions of conditions that do not meet the principle of "arm's length", the taxpayer has the right to carry out on their own the adjustment of the price of the controlled transaction and amounts of tax liabilities, provided that that will not result in reducing the amount of the tax payable to the budget by calculating their tax liabilities.
Regarding the representation in the corporate income tax return of the real estate tax
In its letter dated 07.04.2017 no. 7309/6/99-99-15-02-02-15 the SFS informs that taxable income is
the income from the source of origin in Ukraine and abroad, which is determined by adjustment (increase or decrease) of the financial result before taxation (profit or loss), determined in the financial statements in accordance with national regulations (standards) of accounting or IFRS, by the differences arising under the provisions of section III «Corporate Income Tax" of the Tax Code.
On taxation of non-resident’s income from transportation services
Resident or permanent establishment of non-residents making in favor of non-residents or authorized person (other than a permanent establishment of non-resident in the territory of Ukraine) any payment from income from sources in Ukraine, received by non-resident from business activities (including accounts of non-residents in national currency), are withholding tax on such income at rate of 15 percent and for their expense, unless otherwise provided by entered into force international treaties of Ukraine with the countries of residence of persons to whom payments are made. Amount of freight paid by resident to non-resident under freight contracts is taxed at rate of 6 percent from the source of payment of such income from these income.
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