LAW OF UKRAINE

of November 23, 2018 No. 2628-VIII

About introduction of amendments to the Tax Code of Ukraine and some other legal acts of Ukraine concerning improvement of administration and review of rates of some taxes and fees

List of amending documents

The Verkhovna Rada of Ukraine decides:

I. Bring in the Tax code of Ukraine (Sheets of the Verkhovna Rada of Ukraine, 2011, Art. No. No. 13-17, 112) the following changes:

1. In Article 10:

Item 10. 2, specified the second time to state in the following edition:

"10.2-1. Local councils surely establish the single tax and the property tax (regarding vehicle tax and payment for the earth, except the land tax for forest lands)";

 add Item 10.3 with the words "and the land tax for forest lands".

2.  To add subitem 12.3.3 of Item 12.3 of article 12 after paragraph two with four new paragraphs of such content:

"Monitoring bodies according to the Budget code of Ukraine submit to local government bodies by sources of the income the reporting:

about the amounts of the accrued and paid taxes and fees, the amounts of tax debt which are excessively paid to local budgets of taxes and fees in the corresponding territories - monthly, no later than the 10th following for reporting;

about the amounts of the written-off tax debt; the spread and delayed amounts of tax debt and monetary commitments of taxpayers; the amounts of the provided tax benefits, including losses of budget receipts from their provision - quarterly, no later than 25 days after the termination of reporting quarter.

The specified reporting under payers is provided by monitoring body at the request of local government body".

With respect thereto third - the sixth to consider paragraphs respectively paragraphs the seventh - the tenth.

3. In Item 14.1 of Article 14:

To add 1) with subitem 14.1.1-2 of the following content:

"14.1.1-2. asset with right to use - the asset recognized by the lessee according to requirements of international accounting standards which represents the right to the lessee to use underlying asset during lease term";

 Subitem 14.1.6 to state 2) in the following edition:

"14.1.6. the excise warehouse is:

a) specially equipped rooms in the limited territory (further - rooms) located on customs area of Ukraine where under control of permanent representatives of monitoring body the manager of excise warehouse performs the economic activity by development, processings (conversion), mixing, flood, packaging, packing, storage, obtaining or issue, and also realization of ethyl alcohol, vodka and alcoholic beverage products;

b) the room or the territory on customs area of Ukraine where the manager of excise warehouse performs the economic activity by development, processings (conversion), mixing, flood, loading unloading, storage, fuel realization.

Are not excise warehouse:

a) the premises of separate divisions of the manager of excise warehouse used by it only for packaging, packing, storage obtaining or issues by the marked brands of the excise tax of vodka and the alcoholic beverage products shipped from excise warehouse and also for implementation of wholesale and/or retail trade it agrees the license obtained by the manager of excise warehouse;

b) the room or the territory, on each of which the total capacity of the located reservoirs for loading unloading and storage of fuel does not exceed 200 cubic meters, and the subject of managing (except the payer of the single tax of the fourth group) - the owner or the user of such room or the territory receives within calendar year fuel in the amounts which are not exceeding 1000 cubic meters (without amount of the fuel received through fuel-dispensing columns in places of retail trade by fuel on which the corresponding licenses are obtained), and uses fuel only for needs of own consumption or industrial conversion and does not perform transactions on realization and fuel storage to other persons;

c) the room or the territory irrespective of the total capacity of the located reservoirs for loading unloading and storage of fuel, the owner or the user of which is the subject of managing - the payer of the single tax of the fourth group who receives within calendar year fuel in the amounts which are not exceeding 10000 cubic meters (without amount of the fuel received through fuel-dispensing columns in places of retail trade by fuel on which the corresponding licenses are obtained), and uses fuel only for needs of own consumption and does not perform transactions on realization and fuel storage to other persons;

d) fuel tank as reservoir for storage of fuel it is direct in the vehicle or technical equipment, the device";

To add 3) with subitem 14.1.6-1 of the following content:

"14.1.6-1. portable excise warehouse - the vehicle (the automobile, railway, underwater, river, air, bulk distribution line) on which fuel or ethyl alcohol on customs area of Ukraine moves and/or stored.

The vehicle acquires the status of portable excise warehouse during the period of its use for:

a) movement in it on customs area of Ukraine of fuel or alcohol ethyl, implementable (except fuel or the ethyl alcohol moved on the territory of Ukraine with transit the through passage or internal transit determined by the subitem "an" of Item 2 parts two of Article 91 of the Customs code of Ukraine);

b) storages in it of fuel or ethyl alcohol on customs area of Ukraine;

c) import of fuel or ethyl alcohol to customs area of Ukraine from which the excise tax or on the conditions determined by article 229 of this Code is paid.

The vehicle which is used by subject of managing which is not manager of excise warehouse, for movement on customs area of Ukraine of own fuel or ethyl alcohol for needs of own consumption or industrial conversion is not portable excise warehouse";

 Subitem 14.1.14 after the word of "waste" to add 4) with the words "or from ethyl alcohol-raw", and after the word "biological fuel" - the words "or biocomponent";

 The paragraph third subitem 14.1.22 to state 5) in the following edition:

"from the oil processing company or imports on customs area of Ukraine the oil products, substances used as components of motor fuels for their use depending on the direction determined by Items 229.2 - 229.8 Articles 229 of the Section VI of this Code";

6) in subitem 14.1.45:

in paragraph one the word "standard" and the third offer to exclude;

 to add subitem 14.1.45.1 after words of "underlying asset" with the words "including interest rates";

  subitem 14.1.45.3 in paragraph one the word "standardized" to exclude and add with the second offer of the following content: "The forward contract is carried out by delivery of underlying asset and its payment by means or carrying out between contract parties of cash calculations without delivery of underlying asset";

To add 7) with subitem 14.1.125-1 of the following content:

"14.1.125-1. the standard rate of expenses on payments to insurance intermediaries - the maximum permissible size of payments (remunerations) to insurance intermediaries and other persons for the provided services in the conclusion (prolongation) of insurance contracts established for the purposes of of this Code by the technique determined by the authorized body performing state regulation in the field of the markets of financial services in coordination with the central executive body which provides forming and realizes the state financial policy";

8) in subitem 14.1.176 shall be replaced with words the word of "oil products" "the oil products, substances used as components of motor fuels";

 Paragraph two of subitem 14.1.212 to replace 9) with nine new paragraphs of such content:

"Realization of fuel or ethyl alcohol for the purposes of the Section VI of this Code - any transactions on physical transfer (leave, shipment) of fuel or ethyl alcohol with transition of the property right to such fuel or ethyl alcohol or without such transition, for a fee (compensation) or without such payment on customs area of Ukraine from excise warehouse / portable excise warehouse:

on excise warehouse;

on portable excise warehouse;

for own consumption or industrial conversion;

to any other persons.

The concept "realization of ethyl alcohol" is applied only for the subjects of managing performing activities for production of ethyl alcohol.

Are not considered as transaction fuel realization on physical transfer (leave, shipment) of fuel on customs area of Ukraine:

in consumer pack in reservoir to 5 liters (inclusive), except transactions on realization of such fuel by his producers;

when using fuel from which the excise tax, only for needs of own consumption or industrial conversion by subjects of managing which are not managers of excise warehouse is paid".

With respect thereto third to consider the paragraph the paragraph the eleventh;

 Subitem 14.1.224 to state 10) in the following edition:

"14.1.224. the manager of excise structure - subject of managing which obtained the license for the right of production of ethyl alcohol, alcoholic beverages, registered by the payer of the excise tax or the subject of managing - the payer of the excise tax which performs production, processing (conversion), mixing, pouring, loading unloading, storage, realization of fuel in excise warehouse and has the documents confirming the property right or uses of rooms and/or the territory which belong to excise warehouse";

To add 11) with subitem 14.1.224-1 of the following content:

"14.1.224-1. the manager of portable excise warehouse - the subject of managing payer of the excise tax which is the owner of fuel or performs activities for production of ethyl alcohol and which with use of the vehicle irrespective of who possesses such vehicle:

implements or keeps fuel or ethyl alcohol;

imports fuel on customs area of Ukraine from which the excise tax or on the conditions determined by article 229 of this Code is paid.

The subject of managing (carrier, the freight forwarder) which performs fuel haul or ethyl alcohol is not manager of portable excise warehouse";

 Item 14.1.237 to state 12) in the following edition:

"14.1.237. ethyl alcohol - all types of the rectified and distilled ethyl alcohol, the bioethanol, other types of ethyl alcohol specified in goods items of 2207 and 2208 according to UKT foreign trade activities";

To add 13) with subitems 14.1.273 - 14.1.277 such contents:

"14.1.273. information transfer for the purposes of the Section IV of this Code - transaction of movement (transfer) of data and/or data which is performed from one information and telecommunication system in other information and telecommunication system.

Rendering the services in transactions provided by this subitem and subitems 14.1. 274, 14.1.275, 14.1.276 of this Item, it is performed at free prices according to the civil legislation of Ukraine. At the same time expenses on such services are not considered as losses (harm) and are not subject to compensation;

14.1.274. receipt of information for the purposes of the Section IV of this Code - transaction on receipt of data and/or data in one information and telecommunication system from other information and telecommunication system;

14.1.275. placement of information for the purposes of the Section IV of this Code - the transaction on placement of data and/or data in information and telecommunication system;

14.1.276. introduction of information for the purposes of the Section IV of this Code - transaction on input (set) of data and/or data which is performed by the owner of information for the purpose of further transfer of such data and/or data from information and telecommunication system in other information and telecommunication system and/or with other purpose of information processing in information and telecommunication system. Introduction of information cannot be considered as placement, transfer or receipt of information;

14.1.277. internal tourism for the purposes of the Section XII of this Code - movement within the territory of Ukraine citizens of Ukraine and/or persons who constantly live in the territory of Ukraine, in cognitive, professional and business or other purposes.

Entrance tourism for the purposes of the Section XII of this Code - arrival on the territory of Ukraine and/or movement within the territory of Ukraine persons who constantly live in the territory of Ukraine, in cognitive, professional and business or other purposes".

4.     To add subitems 19-1.1.16 and 19-1.1.17 of Item 19-1.1 of Article 19-1 with the words "and fuel".

5.  To add Item 20.1 of Article 20 with subitem 20.1.40-2 of the following content:

"20.1.40-2. take a legal action about withdrawal in the income of the state (confiscation) of fuel or ethyl alcohol, vehicles, reservoirs and the equipment in case of identification of the facts specified in article 228 of this Code".

6. In Item 30.4 of Article 30 of the word of "tax benefit" shall be replaced with words "tax benefit (except tax benefits on the value added tax)".

7. In Article 39:

1) in Item 39.2:

in subitem 39.2.1:

in subitem 39.2.1.1:

add the subitem "g" with the paragraph third such content:

"If the nonresident whose form of business is included in the list approved by the Cabinet of Ministers of Ukraine according to the subitem "g" of this subitem in reporting year paid the income tax (corporate tax), economic activities of the taxpayer with such nonresident in the absence of the criteria determined by subitems "an" - "in" this Item, are recognized uncontrollable";

" to state the subitem "g" in the following edition:

"") economic activities (including intraeconomic calculations), perfromed between the nonresident and his permanent mission in Ukraine";

   state subitems 39.2.1.4 and 39.2.1.5 in the following edition:

"39.2.1.4. Economic activity for the purposes of transfer pricing are all transaction types, the agreements or arrangements documented or unconfirmed which can influence the taxation object on profit of the companies of the taxpayer, in particular, but not only:

a) transactions with goods, such as raw materials, finished goods and so forth;

b) transactions on acquisition (sale) of services;

c) transactions with intangible assets, such as royalty, licenses, payment for use of patents, trademarks, know-how, etc., and also with any other intellectual property items;

d) financial transactions, including leasing, participation in investments, the credits, commissions on guarantee, etc.;

") transactions on purchase or sale of corporate laws, shares or other investments, purchase or sale of non-current tangible and intangible assets;

e) transactions (including intraeconomic calculations), perfromed between the nonresident and his permanent mission in Ukraine.

39.2.1.5. If into chains of the economic activities between the taxpayer and the nonresident provided by subitem 39.2.1.1 of this Item the property right regarding (result) of such transaction before passing from the taxpayer of such nonresident (in case of export transactions) or before passing from such nonresident to the taxpayer (in case of import transactions) passes to one or several persons and the transaction between the corresponding resident and one of such persons was not recognized the taxpayer controlled transaction, such transaction is considered the controlled transaction between the taxpayer and such nonresident if persons to whom passed the property right:

do not carry out in such set of transactions of the essential functions connected with acquisition (sale) of goods (works, services);

do not use in such set of transactions of essential assets and/or do not assume substantial risks for the organization of acquisition (sale) of goods (works, services).

For the purposes of this subitem:

essential functions are understood as functions which the taxpayer and the nonresident - the parties of controlled transaction could not execute independently in the regular activities without involvement of other persons and use of assets of such persons;

essential assets are understood as assets which use is necessary when implementing such transactions and which are absent at the taxpayer and the nonresident - the parties of controlled transaction;

substantial risks are understood as risks which acceptance is obligatory for business practice of such transactions";

in subitem 39.2.2:

 add subitem 39.2.2.4 with the paragraph the twenty fourth the following content:

"Determination and the analysis of the functions which are carried out by the parties of the transaction are performed based on the signed agreements, accounting data, the actual actions of the parties of the transaction and the actual circumstances of its carrying out according to transaction essence";

add with subitems 39.2.2.9 - 39.2.2.11 such contents:

"39.2.2.9. During determination of comparability of commercial and/or financial conditions of comparable transactions to conditions of controlled transaction characteristics of the assets used by the parties of controlled transaction, in particular, but not only can be also considered:

asset type (production equipment, intangible assets, financial assets, etc.);

asset nature (age, market value, arrangement, availability of the rights of protection and so forth).

Determination and the analysis of influence of intangible assets on conditions controlled and comparable transactions are performed taking into account, in particular, but not only:

legal possession by intangible assets and contractual conditions of their use;

categories and characteristics of intangible assets (exclusivity, degree and duration of protection, geographical scope of application, useful life, development stage);

the contract and actual activities of the parties connected with development, enhancement, maintenance, protection and operation of such assets.

39.2.2.10. If the actual conditions of the committed controlled transaction do not correspond to conditions of the signed (written) agreement and/or the actual actions of the parties of controlled transaction and the actual circumstances of its carrying out differ from conditions of such agreement, commercial and/or financial characteristics of controlled transaction for the purposes of transfer pricing are determined according to the actual actions of the parties of the transaction and the actual conditions of its carrying out.

39.2.2.11. If the controlled transaction is actually made, but documentary is not drawn up not confirmed), for the purposes of transfer pricing it shall be considered in connection with the actual behavior of the parties of the transaction and the actual conditions of its carrying out, in particular, functions which were actually performed by the parties of the transaction, assets which were actually used, and risks which actually assumed are considered and each of the parties controlled";

2) in subitem 39.3.2 of Item 39.3:

the fifth subitem 39.3.2.4 to add the paragraph with the words "and/or in controlled transactions";

 to add subitem 39.3.2.7 after the paragraph of the fifth with the new paragraph of such content:

"on which there is most complete and documentary confirmed information on financial performance of controlled transaction which is used for measure calculation of profitability, provided by subitem 39.3.2.5 of this subitem".

With respect thereto paragraphs of the sixth - to consider the tenth respectively paragraphs the seventh - the eleventh;

3) in Item 39.4:

 state subitem 39.4.4 in the following edition:

"39.4.4. On request of the central executive body which realizes the state tax and customs policy taxpayers within 30 calendar days from the date of receipt of request submit documentation on transfer pricing on the controlled transactions specified in request.

Documentation on transfer pricing moves the taxpayer in the monitoring body specified in request";

 to add the subitem "i" of subitem 39.4.6 after the paragraph of the fourth with the new paragraph of such content:

"reasons for use in case of determination of the range of profitability according to subitem 39.3.2.8 of subitem 39.3.2 of Item 39.3 of this Article of information for several tax periods (years) and calculation of the weighted average measure value of profitability".

With respect thereto the fifth - the eighth to consider paragraphs respectively paragraphs the sixth - the ninth;

4) in Item 39.5:

 add subitem 39.5.2.7 with the paragraph the second such content:

"The term of conducting check of the taxpayer concerning respect for the principle of "outstretched arm" is interrupted in case of consideration by court of claims of the taxpayer for the questions connected with appointment, carrying out or subject of such check before completion of judicial processes";

 state subitem 39.5.2.13 in the following edition:

"39.5.2.13. The monitoring body which performs concerning respect of the principle of "outstretched arm" by the taxpayer has the right:

a) send inquiries for provision of documents (information) of rather controlled transaction to other taxpayers according to Item 73.3 of Article 73 of this Code who are the parties of controlled transaction which is checked or were involved in supply chain of goods (works, services, other objects of the civil laws) which are subject of controlled transaction.

In case of failure to provide by the taxpayers specified in the subitem "an" of this Item, documents (information) request of monitoring body which performs concerning respect of the principle of "outstretched arm" by the taxpayer and/or provisions of incomplete information monitoring body has the right to carry out counter reconciliation of such taxpayers according to the procedure, stipulated in Item 73.5 Articles 73 of this Code;

b) conduct survey of officials and/or workers of taxpayers who are the parties of controlled transaction. Taxpayers shall provide opportunity to officials who perform concerning respect of the principle of "outstretched arm" by the taxpayer, to conduct survey of the corresponding officials or workers;

c) send inquiries to competent authorities of foreign states concerning subject and circumstances of making of controlled transaction and/or concerning economic activity and the financial reporting of the nonresident - the party of controlled transaction;

d) hold meetings with the taxpayer (persons authorized by him) for discussion of methodology of determination of compliance of conditions of controlled transactions to the principle of the "outstretched arm" which is carried out by monitoring body during check";

  Shall be replaced with words 5) in subitem 39.6.2.7 of subitem 39.6.2 of Item 39.6 of the word "what is the subject of the agreement" "being the subject of the agreement, to the principle of "outstretched arm".

8.   To add paragraph two of Item 42-1.2 of Article 42-1 after the word "fuel" with the words "and ethyl alcohol".

9. In Article 44:

 Item 44.3 to add 1) with the paragraph the second such content:

"In case of liquidation of the taxpayer the documents determined by Item 44.1 of this Article, for the period activities of the taxpayer at least 1095 days (2555 days - for documents and information necessary for implementation of tax control behind transfer pricing according to article 39 of this Code) preceding date of liquidation of the taxpayer in the procedure established by the legislation are transferred to archive";

 The second Item 44.7 of the word "Within Five Working Days" shall be replaced with words 2) in the paragraph also in figures "Within 10 working days".

10. In paragraph one of Item 56.3 of Article 56 of the word and figures "within 10 calendar days" shall be replaced with words also in figures "within 10 working days".

11. The paragraph one of subitem 75.1.1 of Item 75.1 of Article 75 to add with the words "and ethyl alcohol".

12.  To add subitem 78.1.18 of Item 78.1 of Article 78 with the words "or ethyl alcohol".

13. In Article 86:

 In paragraph one of Item 86.7 of the word "within five working days" shall be replaced with words 1) also in figures "within 10 working days";

 In paragraph one of Item 86.8 of the word "within ten working days" shall be replaced with words 2) also in figures "within 15 working days".

14. In paragraphs one and the second Item 117.3 of Article 117 shall be replaced with words the word "fuel" "fuel or ethyl alcohol".

15. In Article 120-2:

  The word "fuel" shall be replaced with words 1) in Item 120-2.1 "fuel or ethyl alcohol";

2) in Item 120-2.2:

in the paragraph the second shall be replaced with words the word "fuel" "fuel or ethyl alcohol";

add with paragraphs the third and fourth such content:

"Absence because of the payer of the excise tax who received fuel or ethyl alcohol, registration in the Unified register of excise delivery notes of the second copy excise the superimposed/second copy of calculation of adjustment within more than 120 calendar days after deadline of registration of the second copy of excise superimposed / calculating adjustment -

involves imposing of penalty in the amount of 2 percent of the amount of the excise tax from the corresponding amounts of fuel or ethyl alcohol specified in such excise superimposed / calculating adjustments";

 Item 120-2.3 to add 3) with the words "and for ethyl alcohol-at the rate established for date of realization of ethyl alcohol".

16. In Article 128-1:

The name after the word "fuel" to add 1) with words of "ethyl alcohol";

 Item 128-1-.1 to state 2) in the following edition:

"128-1.1. Not equipment and/or lack of registration in the Unified state register of flowmeters counters and level gages counters of level of fuel in the level gage counter reservoir on the reservoir put into operation located in excise warehouse and/or flowmeter counter on site fuel leaves in bulk from the excise warehouse located in excise warehouse, and also not equipment and/or lack of registration in the Unified state register of flowmeters counters of amount of the made alcohol of ethyl flowmeter counter of ethyl alcohol on site obtaining and leaves of the ethyl alcohol located in excise warehouse -

involves imposing of penalty in the amount of 20000 hryvnias for each not equipped reservoir and/or the unregistered level gage counter, and also for each not equipped place of leave of fuel in bulk from excise warehouse or for each place of obtaining and leave of ethyl alcohol and/or the unregistered flowmeter counter / расходомер-счетчик ethyl alcohol.

Making, repeated within year, in the same excise warehouse of any of the violations provided by paragraph one of this Item -

involves imposing of penalty in the amount of 50000 hryvnias for each not equipped reservoir and/or the unregistered level gage counter, and also for each not equipped place of leave of fuel in bulk from excise warehouse or for each place of obtaining and leave of ethyl alcohol and/or the unregistered flowmeter counter / расходомер-счетчик ethyl alcohol";

To add 3) with Items 128-1.2 and 128-1.3 of the following content:

"128-1.2. Absence because of the taxpayer of registration of excise warehouses in system of electronic administration of realization of fuel and ethyl alcohol by the taxpayer - the manager of excise structure -

involves imposing of penalty in the amount of 1000000 hryvnias.

The same actions made by the taxpayer to whom for year the penalty for the same violation was applied -

involve imposing of penalty in the amount of 2000000 hryvnias.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info