Publication

12.06.2017

REVIEW OF THE MAIN LEGAL NEWS FOR BUSINESS (№5/2017)

Author: Lyubov Ignatova, Oksana Tropec,Anton Prosviriakov, Alexandra Yulina
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:

New conditions for investment abroad

By its Board Resolution no. 51 dated June 08, 2017, which takes effect from 12th June 2017, the National Bank of Ukraine determined new conditions for investment abroad for legal entities...

Another weakening of currency restrictions

According to the NBU Board Resolution number 41 of 25th May 2017 the maximum term of settlements with respect to transactions of export and import of goods will be 180 days again...

The order of analyzing by banks of information on financial transactions has been changed

The National Bank of Ukraine has extended the list of indicators of transactions that will require the in-depth analysis and inspection by banks. Now they include...

The order of financial monitoring by banks has changed

 According to the amendments, approved by the NBU Board dated May 25, 2017 no. 42 "On Amendments to the Regulation on Financial Monitoring by Banks" the analysis of financial transactions on a regular basis, taking into account the risk-oriented approaches, which was previously carried out quarterly, was introduced...

The criteria for detection of customers whose transactions have signs of fictitious nature

In its letter dated 26.05.2017 no. 25-0008/37888 the NBU determined the list of criteria for the detection of customers whose transactions have signs fictitious nature. Among them...

New corporate contracts 

The bill "On Amendments to Some Legislative Acts of Ukraine on Corporate Contracts" provides the appearance of the contract on realization of the limited liability company members’ (founders’) rights and the contract between company shareholders...

Compulsory sale purchase of shares 

The bill "On Amendments to Some Legislative Acts of Ukraine on Raising the Level of Corporate Management in Joint Stock Companies" provides for the cases when the sale/purchase of shares is obligatory...

The draft law "On Limited and Additional Liability Companies"

The bill provides for the following amendments:
• the charter or corporate agreement may establish that members of the company have no preferential right to purchase a share;
• the charter may establish that the alienation of a share (part of the share) and its pledge is permitted only with the consent of other members. At the moment the pre-emptive right of the company’s member to purchase a share, which is being alienated (not under a contract of sale and purchase) to the third party isn’t provided by laws, and therefore the members-sellers of a share are free to dispose of their shares to the third parties, not taking into account the interests of other members at all...

In respect of value added tax on funds erroneously credited by the counterparty to the current account of the enterprise in case of their return

If there is the contractual relationship between companies with respect to the supply of goods/services, then VAT tax liabilities of the payer arise of as of the date of receipt of funds to the bank account in accordance with Art. 187 of the TCU...

Regarding the imposition of a VAT to transactions of return by the company to the founder of the value of the part of property previously contributed by them to the company's authorized fund

Transactions of issue, allotment in any forms of management and sale (repayment, redemption) at the expense of the securities issued in circulation by business entities and corporate rights denominated in other than securities forms; exchange of the said securities and corporate rights, denominated in other than securities forms and other securities, corporate rights, denominated in other than securities forms are not subject to VAT (sub-paragraphs 196.1.1 of paragraph 196.1 of Article 198 of the Tax Code of Ukraine )...

With regard to the adjustment of the financial result before taxation by the amount of interest on credits, loans and other debt obligations that arose from transactions with related persons - non-residents

According to p. 140.2 of Art. 140 of the Tax Code of Ukraine for the taxpayer whose amount of debt obligations, which arose from transactions with related persons - non-residents, exceeds the amount of own capital by more than 3.5 times (for financial institutions and companies carrying out exclusively leasing activities, by more than 10 times), the financial result before taxation is increased by the excess amount of interest on loans, loans and other debt obligations accrued in the accounting that arose from transactions with related persons – non-residents, over 50 percent of the amount of the financial result before taxation, financial expenses and the amount of amortisation according to the data of financial statements for the reporting tax period in which the accrual of such interest is made...

As regards the taxation of dividends paid to a legal entity - resident of Cyprus

The Convention on Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Income Taxes (hereinafter - the Convention) is effective between the Government of Ukraine and the Government of the Republic of Cyprus. The Convention was signed on 8th November 2012, ratified by the Verkhovna Rada of Ukraine on July 4, 2013 and entered into force on 7th August 2013. According to Art. 26 of the Convention its provisions shall apply in the bilateral Ukrainian-Cypriot relations from 01st January 2014...

As regards the documents confirming a beneficial owner 

In letter dated 24.05.2017 Number 334/6/99-99-15-02-02-15/PIK the SFS informs that according to p. 103.3 of Art. 103 of the Tax Code the beneficial (actual) recipient (owner) of the income for the purposes of applying a lowered tax rate according to the rules of the international treaty of Ukraine to dividends, interest, royalties, remuneration, etc. of a non-resident received from sources in Ukraine is considered to be a person who is entitled to such income...

Draft laws on deoffshorization (draft laws by E. Murayev) 

On May 25, 2017 four bills of deputy E. Murayev concerning the issue of taxation of the income of a CFC, regarding the international automatic exchange of information on tax matters and legalization of property in connection with the voluntary declaration of property status and undeclared personal income were registered in the VRU...

Draft law №6502

Draft Law № 6502 was developed for the purpose of the implementation in national legislation of BEPS plan (Action Plan on Base Erosion and Profit Shifting) as regards the introduction of rules of taxation of CFC, in connection with the establishment of transparent rules of taxation of the activity of CFC, improvement of the investment climate, the need of the counteraction against the "escape" of capital from the national economy and creation of favorable conditions for doing business in Ukraine...

Draft law №6503

Drafting of Law № 6503 was due to development of legislative conditions for strengthening of international cooperation on tax matters, which will allow to use modern international legal instruments for struggle with tax evasion as much as possible.

Draft law №6504 

Draft Law № 6504 establishes legal and organizational basis for legalization of property in connection with the voluntary declaration of property status and undeclared personal income. This Law shall apply to persons who legalized and legalize property that they have acquired in the ownership before 1st January 2018...

Draft law №6505 

Draft Law № 6505 proposes to establish temporary from 1st January to 30th June 2018, the personal income tax rate of: 

- 10% of the base of taxation on income – to the total amount over 100 000 minimums for subsistence for able-bodied persons indicated in the declaration on legalization of property (the special declaration) subject to the acceptance by the supervisory authority of the declaration and payment by the taxpayer - subject of legalization of the whole amount of tax till 30th June 2018...

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