Latest legal news for your attention:
The National Bank has left the Discount rate unchanged
The Board of the National Bank of Ukraine (hereinafter - the NBU) decided to keep the Discount rate unchanged at 18.0% per annum, according to a report on the regulator’s website. The preservation of the Discount rate at the specified level was approved by the decision of the NBU Board No. 714-рш dated October 25, 2018.
In addition, the regulator reported that the decision to keep the Discount rate unchanged was taken due to the fact that the value of the inflation level in 2018 still exceeded the National Bank's inflation targets. The regulator noted that the expansion of consumer demand, the high growth rates of wages, the recent rapid increase in oil prices will be reflected in consumer inflation in the next 2019 year as well. As a result, inflation will remain above the target range longer than previously was expected. By the end of 2019, inflation will drop to 6.3%. According to the NBU forecasts, it will enter the target range in the first quarter of 2020 and reach the medium-term target of 5.0% by the end of 2020.
The customs control procedures will be simplified
The Cabinet of Ministers ensured implementation of a ”one-stop shop” mechanism at the customs, which was introduced by the Law ”On Amendments to the Customs Code of Ukraine and Some Other Laws of Ukraine Regarding the Introduction of a "One-Stop Shop" Mechanism and Optimization of Control Procedures When Moving Goods across the Customs Border of Ukraine” No. 2530 -VIII dated September 06, 2018.
The relevant resolution - ”Some Issues of Carrying out Measures of Official Control of Goods Imported into the Customs Territory of Ukraine (Including for the Purpose of Transit)”, was adopted at the Government meeting on October 24, 2018.
The above document has approved:
- a list of goods that, when imported into the customs territory of Ukraine (including for the purpose of transit), are subject to official control measures;
- a list of documents and information subject to verification in the course of preliminary document control.
It should be noted that the Law on the ”one-stop-shop” provides for the introduction of the ”Single Window for International Trade” web portal. The SFS (State Fiscal Service) has six months to update the software for the web portal functioning from the date the Law entered into force (October 04, 2018).
The BEPS plan is Being Implemented into the Tax Code
The BEPS (Base erosion and profit shifting) action plan to counteract the base erosion and profit shifting is planned to be implemented in the tax legislation of Ukraine. The relevant draft law ”On Amendments to the Tax Code of Ukraine in Order to Implement the Plan to Combat the Tax Base Erosion and Profit Shifting” was promulgated jointly by the Ministry of Finance of Ukraine and the NBU.
The project aims to implement eight steps in Ukraine, namely:
1. Step 3: disclosure by natural persons-residents of Ukraine of their participation in foreign companies controlled by them, and the rules of taxation of such companies;
2. Step 4: restricting the costs of financial transactions with related parties;
3. Step 5: prevention of abuse in connection with the application of double taxation avoidance agreements;
4. Step 7: preventing the artificial avoidance of recognition of the permanent representation status;
5. Steps 8-10: improving control over transfer pricing;
6. Step 13: country-by-country reporting rules for international groups of companies.
It is expected that adoption of this bill will avoid recognition of Ukraine as a non-cooperating country in tax matters, which will expand the opportunities for Ukrainian businesses to fully engage in foreign markets, avoiding biased attitudes from foreign counterparties, banks and investors.
Permits for the use of underground resources are sold at electronic auctions
Beginning October 24, 2018, the State Service for Geology and Subsoil of Ukraine will be able to place special permits to use subsoil on e-auctions at the website https://prozorro.gov.ua/.
The corresponding Decree of the Cabinet of Ministers of Ukraine No. 848 dated October 17, 2018, ”On Execution of the Pilot Project to Implement Auctions for the Sale of Special Permits to Use Subsoil through Electronic Auction” came into force on October 23, 2018.
Now auctions for the sale of special permits to use subsoil are held solely in accordance with the Provisional procedure approved by this Decree.
The Pilot project will continue until December 01, 2019, and by September 01, 2019, the State Service for Geology and Subsoil of Ukraine should submit proposals on the feasibility of holding further auctions through electronic auctions.
Importers of alcohol and tobacco will be able to buy excise stamps by electronic application
The government has updated the procedure for selling excise stamps to alcohol and tobacco producers and importers. In particular, the sale of excise stamps will be carried out on the basis of the documents submitted in electronic form by the Buyer of stamps at the place of his registration as an excise tax payer, namely:
- a certificate of payment of the amount of tax calculated at the rates for the finished goods (for domestic manufacturers of alcoholic beverages, wherein non-methylated spirit is used);
- application- calculation of the number of stamps;
- a copy of the payment document on transferring the amount of excise tax with the bank mark containing the date on payment order execution - for importers.
Appropriate amendments to the Regulation on the manufacture, storage, sale of excise tax stamps and labeling of alcoholic beverages and tobacco products were made by the Order No. 844 of Cabinet of Ministers of Ukraine dated October 17, 2018.
Forms of inquiry and application-calculation are approved by the Ministry of Finance of Ukraine. Also, for alcoholic beverages of foreign production, the indication of excise tax amount applicable at the time of the stamp production has been introduced. In addition, regulatory authorities will not be able to demand documents not provided the specified Regulations from buyers of excise tax stamps.