law digest

President legitimized new taxes for individual entrepreneurs

From 1 January 2017 the Unified Social Tax shall be paid even by those individual entrepreneurs that do not receive income. On 27 December 2016 Ukrainian President Petro Poroshenko signed amendments into law to legislation on the operations of individual entrepreneurs. Under new standards, from 1 January 2017 certain categories of individual entrepreneurs, in particular, of second and third groups, shall pay the Unified Social Tax in the amount of UAH 704 per month, even if they do not temporarily receive income.

Previously individual entrepreneurs paid 5% in tax and UST when receiving income during a certain period of time. If there was no flow of funds, then there was no need to pay. Therefore, many businessmen kept their individual entrepreneurs active and paid taxes only when there were real incomes.

Green tariff for large solar power plants reduced

The Ukrainian Parliament has reduced the “green” tariff for electricity generated by solar thermal power plants with a capacity of more than 10 MW, put into operation before 30 June 2015, by 1.8 times.

This is provided by the Law On Amendments to the Law of Ukraine on Electricity (concerning coefficients of “green” tariff for electricity generated using alternative sources of energy) passed on 22 December.

For solar power plants put into operation before March 2013, coefficient of the “green” tariff is reduced from 8.64 to 4.8; for facilities put into operation between April 2013 and the end of 2014 — from 6.3 to 3.5; for facilities put into operation between January 2015 and June 2015 — from 5.67 to 3.15.

NBU lifted 120 days restriction for payments for exporters of services

The National Bank of Ukraine (NBU) has lifted restrictions for payment period of 120 days for transactions on the export of services (except for transport and insurance ones), as well as for intellectual property rights and copyright, according to the law on elimination of administrative barriers to the export of services, which came into force on 3 December 2016.

Moreover, exporters may not translate documents, including an invoice, made out in English or another foreign language (which are at the same time set out in English) into Ukrainian for submission to a bank.

Furthermore, banks may use copies of documents, including an invoice, and in electronic form for exchange control over export-import transactions of residents. To do this a resident has to scan the original document on paper and to attest it by affixing an electronic digital signature (for legal entities — signature of authorized person).

Relevant amendments to the Regulations on procedure for control over export, import transactions were introduced by the National Bank on 30 December 2016 under No. 419, which came into force on 3 January 2017.

Administrative restrictions on transactions on export of services were lifted in accordance with Law No. 1724-VIII On Amendments to Certain Legislative Acts of Ukraine (regarding removal of administrative barriers to the export of services).

Business allowed to amend customs declarations

On 11 January 2017 the Cabinet of Ministers allowed businesses to correct customs declarations. This  resolution proposes to oblige the Customs Service to make changes to customs declarations, if a customs decision was canceled (through a court proceeding); to grant business the right to correct customs declarations related to receiving (modified) transfer pricing rules.

Simplified system of medicinal products registration started its work

The Ministry of Justice has registered and issued a corresponding order of the Ministry of Health, according to which medicinal products, registered in the United States, Switzerland, Japan, Australia, Canada and the EU may be registered in Ukraine within 17 days.

A reminder that earlier the procedure lasted for 1-2 years, and if the manufacturer wanted to simplify it corruption schemes were used. Manufacturers did not want to register their medicinal products in Ukraine due to the complexity of the process and the corruption component.