Major changes to the Tax Code of Ukraine taking effect on January 1, 2014

Автор: admin_dev
Major changes to the Tax Code of Ukraine taking effect on January 1, 2014

At the start of 2014, innovations concerning tax benefits and accounting reporting were proposed under the Law of Ukraine №657-VII dated 24.10.2013 “On amendments to the Tax Code of Ukraine regarding the accounting and registration of taxpayers and improvement of certain provisions”.

Зміст статті:

At the start of 2014, innovations concerning tax benefits and accounting reporting were proposed under the Law of Ukraine №657-VII dated 24.10.2013 “On amendments to the Tax Code of Ukraine regarding the accounting and registration of taxpayers and improvement of certain provisions”.

Amendments were made to the definitions of the following terms:

  • “bad debt” (subparagraph b, 14.1.11 ). In particular, the subjects of overdue debt were clarified (natural person or legal entity);
  • “related persons”. In subparagraph c, 14.1.159, regarding individuals as related persons for transfer pricing purposes, the word “underage” was replaced by the words “young/underage”.

 

It is proposed to add paragraph 63.13 to Article 63, which states that the Ministry of Revenues and Duties will publish on its official website and on the unified state registration web portal for legal entities and individual entrepreneurs information regarding registration as taxpayers of legal entities, their separate subdivisions and self-employed persons no later than the next working day after registration. Anyone will have free access to these resources. On the websites about the taxpayer one will be able to find specific data (tax number, name, location, registration information, etc.).

Article 70 is supplemented with paragraph 70.1 which states that a natural person who is a resident of a foreign country may be registered at the place of registration of their stay on the territory of Ukraine.

The deadline for providing notification and information about registration actions (registration, termination of a legal entity or the entrepreneurial activity of an individual entrepreneur, making changes to the Unified State Register) by the state registration authority to the relevant controlling authority has been changed. It was “no later than the next working day from the date”, it will become “on the day” (paragraph 68.1 of Article 68).

Also, no later than the next working day, banks and financial institutions shall provide to the controlling authority (in which the taxpayer is registered) information on the opening/closing of accounts by taxpayers – legal entities (previously within three working days). After that, the controlling authority “no later than the next working day” must send a notification about the registration or refusal to register the account (previously within three working days) (paragraphs 69.2, 69.3).

Article 81 is supplemented with information regarding inspections. In particular, inspectors (officials of the controlling authority) cannot require an extract from the relevant register on the registration of the taxpayer from that taxpayer. At the same time, when receiving copies of requested documents, these must be certified by the signature of the taxpayer or their official and stamped (addition to subparagraph 85.4)

In connection with the introduction of the taxpayer register and the unified state registration web portal for legal entities and individual entrepreneurs, the contents of paragraphs 183.11 and 183.13 have been changed. They state that the controlling authority, at the taxpayer’s request, provides within three working days an extract from the register that was in force before certain changes were made. The form of the respective request is approved and established by the central executive body that implements the state tax and customs policy. On the unified state registration web portal for legal entities and individual entrepreneurs and on its official website, information about the data from the taxpayer register (name, registration date, individual tax number, etc.), about annulled persons (date of annulment, reason and grounds) is published daily. Within 5 working days, controlling authorities provide the relevant information to the taxpayer upon request in electronic form.

These changes will take effect on January 1, 2014.