LAW OF UKRAINE

of January 16, 2020 No. 466-IX

About introduction of amendments to the Tax Code of Ukraine concerning enhancement of administration of taxes, elimination of technical and logical not coordinations in the tax legislation

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 1:

Paragraph one of Item 1.1 after the words "administration of taxes" to add 1) with the words "and charges";

"The law of Ukraine "On recovery of solvency of the debtor or recognition by his bankrupt" shall be replaced with words 2) in Item 1.3 of the word "The code of Ukraine on insolvency proceedings".

2. In Article 12:

1) in Item 12.3:

the paragraph one to add with words and figures "and tax benefits on payment of the local taxes and charges till July 15 of the year preceding budget period in which application of the established local taxes and/or charges, and about modification of such decisions is planned";

in subitem 12.3.2 of the word of "taxes and fees" shall be replaced with words "taxes and/or charges";

state subitem 12.3.3 in the following edition:

"12.3.3. The village, settlement, city councils and councils of the integrated territorial communities created according to the law and the perspective plan of forming of the territories of communities send to ten-day time from the date of decision making, but no later than July 25 of the year preceding budget period in which application of the established local taxes and/or charges and tax benefits on payment of the local taxes and/or charges, in monitoring body in which payers of the corresponding local taxes and/or charges, information in electronic form concerning rates and tax benefits on payment of the local taxes and/or charges according to the procedure and in form, the approved Cabinet of Ministers of Ukraine, and copy of the made decisions on establishment of the local taxes and/or charges and on modification of such decisions stay on the registry is planned.

If in the decision of local government body on establishment of the local taxes and/or charges, and also tax benefits the term of its action is not determined by their payment, such decision is acting before adoption of the new decision.

Monitoring bodies no later than August 25 of the current year constitute summary information on the size and date of establishment of rates of the local taxes and/or charges in the corresponding territories, and also about the tax benefits established in the corresponding territories and submit it electronically to the central executive body which realizes the state tax policy.

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

about the amounts of the written-off bad tax debt; the amounts of the spread and delayed monetary commitments and/or tax debt of taxpayers which shall be paid to local budgets in the corresponding territories; 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 reporting by taxpayers - legal entities is provided by monitoring body at the request of local government body within 20 days from the moment of receipt of request by it.

The procedure for provision of the reporting by taxpayers - legal entities to local government bodies affirms the central executive body which provides forming and realizes the state financial policy.

The central executive body realizing the state tax policy no later than September 25 of the current year publishes on the official website summary information on the size and installation date in the corresponding territories of rates of the local taxes and/or charges, and also about the tax benefits established in the corresponding territories.

The local government body in ten-day time from the date of approval of technical documentation of normative money value of lands sends electronically to the monitoring body and the central executive body realizing state policy in the field of land relations, information on normative money value of lands according to the procedure and in form, the approved Cabinet of Ministers of Ukraine.

The procedure for exchange of information between local government bodies and the central executive body realizing state policy in the field of land relations is determined by the Cabinet of Ministers of Ukraine.

The central executive body which realizes state policy in the field of land relations no later than July 15 of the current year publishes on the official website summary information on the carried-out normative money value of lands";

in the first offer of the subitem 12.3.4 of figure "15" to replace with figures "25", and shall be replaced with words words of "taxes and fees" "taxes and/or charges";

state subitem 12.3.5 in the following edition:

"12.3.5. If till July 15 of the year preceding budget period in which application of the local taxes and/or charges is planned the village, settlement, city council or council of the integrated territorial communities created according to the law and the perspective plan of forming of the territories of communities did not make the decision on establishment of the corresponding local taxes and/or charges which are obligatory according to regulations of this Code, such taxes and/or charges are levied proceeding from regulations of this Code using rates which were effective till December 31 of the year preceding budget period in which application of such local taxes and/or charges is planned";

To exclude 2) in subitem 12.4.3 of Item 12.4 of the word "prior to the beginning of the next budget period";

3) in Item 12.5:

word in paragraph one of "the local taxes and charges" shall be replaced with words "the local taxes and/or charges, and also change of the size of their rates, the taxation object, procedure for collection or provision of tax benefits or about modification of such decisions";

in the second offer of paragraph two of the word "and charges" shall be replaced with words "and/or charges or modification of such decisions".

3. In Item 14.1 of Article 14:

The paragraph the eleventh subitem 14.1.11 after the words "To Bad Debt of Banks" to add 1) with the words "and non-bank financial institutions";

To add 2) in subitem 14.1.24 after the words "it is assigned to monitoring bodies" with the words "except customs payments", to replace figure "1" with figures of "1,5", and the word and figure "if the amount of such taxes, charges, payments, except customs payments, exceeds equivalent of 500 thousand euros" to exclude;

3) in subitem 14.1.39:

after the words "tax liability" to add with the words "and/or other obligation, control of which payment is imposed on monitoring bodies";

add with the words "and penalty fee";

Subitem 14.1.49 to state 4) in the following edition:

"14.1.49. dividends - payment which is made by the legal entity, including the issuer of corporate laws, investment certificates or other securities, for benefit of the owner of such corporate laws, investment certificates and other securities certifying the property right of the investor to share (share) in property (assets) of the issuer in connection with distribution of part of its profit calculated by accounting rules.

For the purposes of the taxation are also equated to dividends:

payment in cash or non-cash form which is made by the legal entity for benefit of its founder and/or the participant (participants) in connection with distribution of net profit (its part);

the amounts of the income in payment type for securities (corporate laws) which are paid for benefit of the nonresident specified in subitems "a", "v", "g" of subitem 39.2.1.1 of subitem 39.2.1 of Item 39.2 of article 39 of this Code in controlled transactions over the amount which corresponds to the principle of "outstretched arm";

the cost of goods (works, services), except securities and derivatives), acquired at the nonresident specified in subitems "a", "v", "g" of subitem 39.2.1.1 of subitem 39.2.1 of Item 39.2 of article 39 of this Code in controlled transactions over the amount which corresponds to the principle of "outstretched arm";

the amount of understating of cost of goods (works, services) which are on sale to the nonresident specified in subitems "a", "v", "g" of subitem 39.2.1.1 of subitem 39.2.1 of Item 39.2 of article 39 of this Code in controlled transactions, in comparison with the amount which corresponds to the principle of "outstretched arm";

payment in cash or non-cash form which is performed by the legal entity for benefit of its founder and/or the participant - the nonresident of Ukraine in connection with reduction of the authorized capital, the redemption the legal entity of corporate laws in own authorized capital, exit of the participant from structure of economic society or other similar transaction between the legal entity and his participant, in the amount of which leads to reduction of retained earnings of the legal entity";

5) in subitem 14.1.54:

add the subitem "a" with the words "or permanent missions of nonresidents in Ukraine";

add with subitems "z" and "i" of the following content:

"h) income from alienation of the rights to production and development of mineral deposits, mineral sources and other natural resources;

i) the income from alienation of shares, shares, corporate or other similar laws in the foreign companies, the organizations created according to the legislation of other states (foreign legal entities) which correspond to the following conditions:

1) at any moment within 365 days preceding sale or other alienation, share value, share, corporate or other similar laws of the foreign legal entity for 50 and more percent it is formed at the expense of shares, shares in Ukrainian the legal entity which belong to the specified foreign legal entity directly or indirectly, and

2) at any moment within 365 days preceding sale or other alienation, share value, by share in the Ukrainian legal entity for 50 and more percent it is formed at the expense of real estate which is in Ukraine and belongs to such Ukrainian legal entity or is used by such Ukrainian legal entity based on the agreement of long-term lease, financial leasing or the similar agreement.

Share value, share, corporate or other similar laws (for the purposes of subitem 1 of this subitem) and real estate (for the purpose of subitem 2 of this subitem) is determined based on book (residual) value by accounting data as the greatest amount within 365 days preceding sale or other alienation at any moment and is subject to comparison with the cost of other property (assets) on book (residual) value according to accounting data of such legal entity";

To add 6) with subitems 14.1.56-3 and 14.1.56-4 of such content:

"14.1.56-3. electronic cigarette - product which can be used for consumption (inhalation) of the vapors which are formed as a result of heating by components of such product of the liquids containing or not containing nicotine. Electronic cigarettes can be one-time or reusable.

14.1.56-4. the liquids used in electronic cigarettes - the liquid mixes of chemicals which are containing or not containing nicotine which are used for creation of vapor in electronic cigarettes and contain, in particular, in cartridges, filling containers and other reservoirs";

Subitem 14.1.61 to exclude 7);

8) to add with subitems 14.1.94-1, 14.1.103-1 and 14.1.113-3 of such content:

"14.1.94-1. the quoted prices (for the purposes of article 39 of this Code) - the prices of primary good during the corresponding period received in the international market of goods which include, in particular, results of the exchange biddings, the prices received from the acknowledged agencies with the transparent reporting concerning the prices, the statistical agencies or from governmental agencies on pricing where such indexes are used as reference point (standard) by untied persons for determination of the prices in transactions between them. The quoted price is determined as the price (average price) and/or price range of certain date or period of time";

"14.1.103-1. mother company of the international group of companies (for the purposes of article 39 of this Code) - the legal entity who is part of the international group of companies and at the same time meets such requirements:

directly or indirectly owns corporate laws of other companies (or actually controls such companies) as a part of the international group and the share of such ownership is sufficient for inclusion of the financial reporting of other companies as a part of the international group in consolidated financial statements of the legal entity;

the financial reporting of such legal entity is not subject to inclusion in the consolidated statements of other legal entity as a part of the international group according to international accounting standards";

"14.1.113-3. the international group of companies (for the purposes of article 39 of this Code) - two or more legal entities or educations without the status of the legal entity who are tax residents of the different countries also are connected among themselves by criteria of ownership or control in such a way that according to international accounting standards or other internationally acknowledged accounting standards preparation of consolidated financial statements is obligatory or preparation of consolidated financial statements would be obligatory if shares (corporate laws) of one of such legal entities would be in circulation on the stock exchange";

Shall be replaced with words 9) in subitem 14.1.107 of the word of "alcoholic beverages and tobacco products" "the alcoholic beverages, tobacco products and liquids used in electronic cigarettes";

Subitem 14.1.109 to state 10) in the following edition:

"14.1.109. marking of the alcoholic beverages, tobacco products and liquids used in electronic cigarettes - gluing of brand of the excise tax on bottle (packaging) of alcoholic drink, pack (packaging) of tobacco product or reservoir (packaging) with liquid which is used in electronic cigarettes, according to the procedure, determined by the Cabinet of Ministers of Ukraine concerning production, storage and sale of brands of the excise tax";

Shall be replaced with words 11) in subitem 14.1.114 of the word "from cigarettes" "from cigarettes and cigarettes, cigarillos";

To replace 12) in the subitem 14.1.138 of figure "6000" with figures "20000";

13) in the paragraph the sixteenth subitem 14.1.139 of the word "tax and customs" to replace with the word "financial";

Shall be replaced with words 14) in subitem 14.1.148 of the word of "alcoholic beverages and tobacco products" "the alcoholic beverages, tobacco products and liquids used in electronic cigarettes";

Subitem 14.1.156 to add 15) with the words "and/or the amount of means created at the expense of tax benefits which were used by the taxpayer not for purpose or with violation of procedure for their provision established by this Code and/or the Customs code of Ukraine";

To add 16) with subitem 14.1.156-1 of the following content:

"14.1.156-1. the tax liability (for the purposes of the Section V of this Code) - the total amount of the value added tax received (added) by the taxpayer in the accounting (tax) period and/or the amount of means created at the expense of tax benefits which were used by the taxpayer not for purpose or with violation of procedure for their provision established by this Code";

17) in subitem 14.1.159:

the paragraph one after words to add "physical persons" with the words "and/or educations without the status of the legal entity";

in the subitem "a":

in the paragraph the second to replace figures "20" with figures "25", and after the words "more percent" to add with words and figures "(except international financial institutions which according to international treaties of Ukraine are allocated with privileges and immunities and subjects of managing, the owner of essential participation in the amount of 75 and more percent of which are such international financial institutions)";

in paragraph three of figure "20" to replace with figures "25";

the first offer of the paragraph of the eleventh to state in the following edition:

"the amount of all credits (loans), returnable financial aid from one legal entity (except banks and international financial institutions which according to international treaties of Ukraine are allocated with privileges and immunities and subjects of managing, the owner of essential participation in the amount of 75 and more percent of which are such international financial institutions) and/or the credits (loans), returnable financial aid from other legal entities guaranteed by one legal entity (except banks and international financial institutions which according to international treaties of Ukraine are allocated with privileges and immunities and subjects of managing, the owner of essential participation in the amount of 75 and more percent of which are such international financial institutions), concerning other legal entity exceeds the equity amount more than in time 3,5 (for financial institutions and the companies, performing exclusively leasing activities, - more than by 10 times)";

in the paragraph the second the subitem "b" of figure "20" to replace with figures "25";

in the subitem "v":

in paragraph five of figure "20" to replace with figures "25";

to state the paragraph of the sixth in the following edition:

"directly and/or indirectly belong to such physical person in the legal entity through ownership of corporate laws";

to add the paragraph of the seventh with words "(without the faces tied with such physical person through immediate and/or indirect possession by corporate laws)";

word in paragraph eight of "this subitem" shall be replaced with words also in figures of "subitem 14.1.159 of this Item";

after the paragraph of the eighth to add with the new paragraph of such content:

"In case of implementation of economic activities by educations without the status of the legal entity with the connected person of any of agreement parties about joint activities which size of deposits to common property constitutes 25 and more percent educations without the status of the legal entity (cooperation agreement) and such connected face of any of participants of such agreement are recognized connected".

With respect thereto the ninth - the fifteenth to consider paragraphs respectively paragraphs the tenth - the sixteenth;

the sixteenth to state the paragraph in the following edition:

"The monitoring body judicially can prove coherence of persons on the basis of the facts and circumstances that one legal entity or physical person exercised the actual control of business solutions of other legal entity, educations without the status of the legal entity and/or that the same physical person or legal entity exercised the actual control of business solutions of each legal entity and/or education without the status of the legal entity";

Subitem 14.1.162 to state 18) in the following edition:

"14.1.162. penalty fee - the amount of means in the form of percent added on the amounts of the tax liabilities and/or on the amounts of the penal (financial) sanctions which are not paid to the terms established by the legislation, and also added in other cases and procedure provided by this Code or other legislation, control of which observance is imposed on monitoring bodies";

Subitem 14.1.179 to exclude 19);

Shall be replaced with words 20) in subitem 14.1.190 of the word of "alcoholic beverages and tobacco products" "the alcoholic beverages, tobacco products and liquids used in electronic cigarettes";

Paragraphs two and third subitem 14.1.193 to replace 21) with twenty four new paragraphs of such content:

"For the purpose of the taxation "permanent mission" includes the term:

a) the building site, construction, assembly or mounting object or the related supervising activities if duration of the works connected with such platform, object or activities (within one project or projects connected among themselves), which are carried out by the nonresident through employees or other personnel hired by him for such purposes exceeds 12 months;

b) provision of services by the nonresident (except services in provision of personnel), including consulting, through the employees engaged by it for such purposes if such activities are performed (within one project or the project which is connected with it) in Ukraine during the period or the periods which general duration constitutes more than 183 days in any twelve-monthly period;

c) persons who based on the agreement, other transaction or actually have and will be implemented by powers to conduct negotiations of rather essential conditions of transactions therefore the nonresident signs agreements (contracts) without essential change of such conditions, and/or to sign agreements (contracts) on behalf of the nonresident if the specified activities are performed by person in interests, for the account and/or for benefit of one nonresident and/or the related persons - nonresidents;

d) persons who based on the agreement, other transaction or actually have and usually will be implemented by powers to contain (to store) inventories (goods) belonging to the nonresident from which warehouse delivery of inventories (goods) on behalf of the nonresident is performed, except residents - holders of warehouse of temporary storage or customs warehouse.

For the purposes of application of subitems "an" and "b" of this subitem when calculating the general period during which the nonresident performs activities in Ukraine to complete consecutive or inconsistent calendar months of project duration (or the projects connected among themselves), performance of works or rendering services by the nonresident in Ukraine are applied:

duration of activities of the nonresident in Ukraine which is performed within several consecutive or inconsistent periods which separately are smaller for complete calendar month, but in total is exceeded by 30 days, and

duration of activities of the connected faces of this nonresident in Ukraine if such activities are closely connected with activities of the nonresident determined in subitems "an" and "b" of this subitem and is performed within several consecutive or inconsistent periods which are equal to complete calendar month or which separately are smaller for complete calendar month, but in total exceed 30 days.

For the purposes of application of subitems "v" and "g" of this subitem about availability at person of actual authorities to perform in interests, for the account and/or for benefit of the nonresident activities which have signs of permanent mission, maybe, in particular, but it is not exclusive, to witness:

provision by the nonresident of instructions, obligatory to execution (including means of electronic communication or by transfer of electronic media) and their execution by person;

availability at person and use by it of the e-mail address of corporate e-mail of the nonresident and/or his connected persons for communication and/or with the third parties with whom the nonresident already concluded or will sign with the nonresident further agreements or other transactions;

realization by person of right of possession or the order inventories (goods) or other assets of the nonresident in Ukraine or their considerable share based on the corresponding instructions of the nonresident;

availability at person of the rooms leased from own name for storage of the property acquired at the expense of the nonresident or which belongs to the nonresident or the third parties and is subject to transfer to the third parties on specifying of the nonresident, or for other purposes determined by the nonresident.

The nonresident is not considered having permanent mission in Ukraine if he performs economic activity through the intermediary - the resident, but at the same time provision by residents of agency, confidential, commission and other similar intermediary services on sale or purchase of goods (works, services) for the account, in interests and/or for benefit of the nonresident is performed within the main (regular) activities of resident and on usual conditions. If the intermediary - the resident acts only or consider only the account, in interests and/or for benefit of one or several persons - nonresidents who are the connected persons, such intermediary cannot be considered acting within the main (regular) activities concerning any of the connected persons - nonresidents, and is recognized permanent mission of such nonresident in Ukraine or each person - the nonresident if such nonresidents are the connected persons.

Permanent mission is not:

a) use of buildings or constructions only for the purpose of storage, goods demonstration or the products belonging to the nonresident;

b) stock holding of the goods or products belonging to the nonresident is exclusive for the purpose of storage or demonstration;

c) stock holding of the goods or products belonging to the nonresident is exclusive for the purpose of conversion by other company;

d) content of the permanent place of activities is exclusive for the purpose of purchase of goods or products or for information collection for the nonresident;

ґ) the direction in the order of face of physical persons within agreement performance about services in provision of personnel;

e) content of the permanent place of activities with other purpose.

Content of the permanent place of activities only for implementation of any combination of the types of activity specified in subitems of "a" - "д" this subitem provided that such types of activity (their combination) have preparatory or auxiliary nature for such nonresident, is not permanent mission.

The permanent mission of the nonresident in Ukraine is recognized also if activities in Ukraine are performed by several nonresidents - the connected persons if such activities in total go beyond activities of preparatory or auxiliary nature for such group of nonresidents - the connected persons. In that case the permanent mission is recognized for each such nonresident - the connected person. This paragraph is applied only in case activities of such nonresidents - the connected persons in Ukraine constitute in total complementary functions of closely connected business process.

Recognition of person by the controlling person according to provisions of article 39-2 of this Code is not permanent mission";

The eighteenth subitem 14.1.212 of the word "tobacco and industrial substitutes of tobacco" shall be replaced with words 22) in the paragraph "tobacco and industrial substitutes of tobacco and liquids used in electronic cigarettes";

In paragraph one of subitem 14.1.216 of the word "the central executive body providing forming of state policy in oil and gas complex" to exclude 23);

Paragraph two to subitem 14.1.226 after the words "provided that such person is not the worker or physical person entrepreneur" to add 24) with words and figures "(except for case, stipulated in Item 65.9 articles 65 of this Code)";

Subitem 14.1.231 to add 25) with paragraphs the second - the fifth the following content:

"Economic effect assumes surplus (preserving) of assets of the taxpayer and/or their cost, and also creation of conditions for such surplus (preserving) in the future.

For the purposes of the taxation it is considered that the transaction performed with nonresidents has no reasonable economic reason (the business purpose), in particular, but not only if:

main goal or one of main goals of transaction and/or its result is failure to pay (incomplete payment) the amount of taxes and/or reduction of amount of taxable profit of the taxpayer;

in comparable conditions person not was it is ready to purchase (to sell) such works (services), intangible assets, other objects of economic activities other than goods, from untied persons";

And figures "for the purposes of Chapter 1 of the Section XIV of this Code" to exclude 26) in subitem 14.1.234 of the word;

To add 27) with subitem 14.1.254-1 of the following content:

"14.1.254-1. the authorized participant (for the purposes of article 39 of this Code) - the legal entity as a part of the international group of companies authorized by mother company on preparation and submission of the report by the countries concerning such international group of companies to tax authority of the state in which such legal entity is registered or in which its activities lead to formation of permanent mission";

28) in subitem 14.1.265 of the word "the taxpayer in connection with violation of requirements of the tax legislation and other legislation control for which observance" shall be replaced with words "persons who made tax offense or violation of other legislation, control for which observance" by it;

29) in subitem 14.1.266 of the word "the bank account (in cash desk) the taxpayer" shall be replaced with words "the accounts of the taxpayer opened in organizations of the banks and/or bodies performing treasurer servicing of budgetary funds in cash desk of the taxpayer", and words "the bank account (issue from cash desk) the taxpayer" - words of "the accounts of the taxpayer opened in organizations of the banks and/or bodies performing treasurer servicing of budgetary funds, date of issue from cash desk of the taxpayer";

In paragraph one of subitem 14.1.268 of the word and figures "for the purposes of the Section IV of this Code" to exclude 30).

4. To add Item 16.1 of Article 16 with subitem 16.1.15 of such content:

"16.1.15. provide provision with official (office) faces of the taxpayer of written explanations on the written request of monitoring body on the questions concerning check subject, and their documentary confirmation".

5. In Item 17.1 of Article 17:

Subitem 17.1.6 after words of "such checks" to add 1) with the words "and on own initiative explanations on questions which were not requested by monitoring body";

Subitem 17.1.7 after the words "including" to add 2) with the words "provided to it in paper or electronic form";

"Losses (damage) caused" shall be replaced with words 3) in subitem 17.1.11 of the word "the harm done";

Subitem 17.1.15 after words "the methodologist of electronic office" to add 4) with the words "or according to the message on the official web portal of the central executive body which realizes the state tax policy";

To add 5) with subitem 17.1.16 of such content:

"17.1.16. provide on own initiative written explanations and/or documents concerning the circumstances confirming lack of his fault in the committed tax offense, according to the procedure established by this Code".

6. In Article 19-1:

1) in Item 19-1.1:

the paragraph one after words to add "Monitoring bodies" with the words "articles of 41 of this Code determined by subitem 41.1.1 of Item 41.1";

in subitem 19-1.1.7 of the word "persons who perform transactions with the goods which are under customs control" shall be replaced with words "payers of single fee";

in subitem 19-1.1.8 of the word of "subjects of foreign economic activity" to exclude;

exclude subitem 19-1.1.12;

state subitem 19-1.1.13 in the following edition:

"19-1.1.13. perform licensing of activities of subjects of managing for production of alcohol, the alcoholic beverages, tobacco products and liquids used in electronic cigarettes, wholesale trade by alcohol, wholesale and retail trade by the alcoholic beverages, tobacco products and liquids used in electronic cigarettes and control of such production;

in subitems 19-1.1.16 and 19-1.1.17 of the word of "alcoholic beverages and tobacco products and fuel" shall be replaced with words "alcoholic beverages, tobacco products, the liquids used in electronic cigarettes and fuel";

in subitem 19-1.1.18 of the word "bottles (packagings) with alcoholic beverages and packs (packagings) of tobacco products" shall be replaced with words "bottles (packagings) with alcoholic beverages and packs (packagings) of tobacco products, reservoirs (packagings) with liquids which are used in electronic cigarettes";

in subitem 19-1.1.29 of the word "and customs" to exclude;

in subitem 19-1.1.32 of the word "and customs spheres" to replace with the word to "sphere";

in subitem 19-1.1.36 of the word "customs" to exclude;

in subitem 19-1.1.40 of the word "customs" to exclude;

in subitem 19-1.1.44 of the word "customs" to exclude;

state subitem 19-1.1.48 in the following edition::

"19-1.1.48. constitute the reporting concerning condition of calculations of payers with the budget and payments of single fee, and also other indicators of work on activities of the central executive body which realizes the state tax policy";

add with subitems 19-1.1.49 - 19-1.1.54 of the following content:

"19-1.1.49. inform public authorities on condition of calculations of taxpayers with budgets and payments of single fee;

19-1.1.50. inform local government bodies on condition of calculations with local budgets;

19-1.1.51. exercise control of timeliness, reliability, completeness of charge and payment of part of net profit (income) in the budget state both municipal unitary enterprises and their associations, and also economic societies in which authorized capital there is the state-owned and/or utility property;

19-1.1.52. exercise control of timeliness, reliability, completeness of charge and payment in the budget of dividends for the state share by economic societies in which authorized capital there are corporate laws of the state, and also economic societies, 50 and more percent of shares (share, shares) which are in the authorized capital of economic societies, the share of the state in which constitutes 100 percent;

19-1.1.53. submit to local government bodies the reporting determined by subitem 12.3.3 of Item 12.3 of article 12 of this Code including under taxpayers - to legal entities;

19-1.1.54. perform other functions determined by the law";

To add 2) with Item 19-1.2 of the following content:

"19-1.2. The monitoring bodies determined by subitem 41.1.2 of Item 41.1 of article 41 of this Code perform such functions:

19-1.2.1. will organize and perform accounting and administrations of duty, the excise tax, the value added tax, other taxes which according to tax, customs and other legislation are levied in connection with import (transfer) of goods to customs area of Ukraine or the territory of free customs zone or export (transfer) of goods from customs area of Ukraine or the territory of free customs zone provide control of timeliness, reliability, completeness of their charge and payment in full by taxpayers in the relevant budget when moving goods through customs border of Ukraine and after completion of transactions of customs control and customs clearance;

19-1.2.2. create and keep the Unified state register of the authorized economic operators;

19-1.2.3. perform other functions determined by the law".

7. In Item 19-2.1 of Article 19-2:

Subitem 19-2.1.6 to state 1) in the following edition:

"19-2.1.6. performs procedures of mutual approval according to international treaties of Ukraine on avoidance of double taxation";

To add 2) with subitem 19-2.1.7 of the following content:

"19-2.1.7. performs other functions provided by the law".

8. To add subitem 19-3.1.3 of Item 19-3.1 of Article 19-3 with words and figures "determined by subitem 41.1.1 of Item 41.1 of article 41 of this Code".

9. In Article 20:

1) in Item 20.1:

the paragraph one after words to add "Monitoring bodies" with words and figures "determined by subitem 41.1.1 of Item 41.1 of article 41 of this Code";

add with subitem 20.1.1-1 of the following content:

"20.1.1-1. analyze financial condition of the taxpayer who has tax debt, and condition of providing such debt with tax pledge";

state subitem 20.1.23 in the following edition:

"20.1.23. provide according to the law information from the State register of physical persons taxpayers and the register of insurers to public authorities, the Pension fund of Ukraine and funds of obligatory national social insurance";

state subitem 20.1.25 in the following edition:

"20.1.25. make the decision on change of the main and nonbasic place of accounting of large taxpayers, their removals from accounting and transfer in territorial authority of the central executive body realizing the state tax policy are performed by tax escort of large taxpayers (its structural divisions), and other territorial authorities of the central executive body which realizes the state tax policy";

add with subitem 20.1.34-1 of the following content:

"20.1.34-1. take a legal action concerning provision of permission to repayment of all amount of tax debt or its part at the expense of property of the taxpayer who is in tax pledge";

in subitem 20.1.42 of the word "and customs" to exclude;

state subitem 20.1.46 in the following edition:

"20.1.46. during conducting check and consideration of results of check to receive written explanations from officials on the questions concerning check subject and their documentary confirmation, including concerning implementation by person of economic activity without state registration";

add with new subitems 20.1.47 and 20.1.48 of such content:

"20.1.47. receive explanations from employers and/or workers and/or persons whose work is used without documentary registration, during conducting checks concerning observance of the legislation by the employer concerning execution of an employment agreement, registration of employment relationships with workers (employees), observance by the tax agent of the tax legislation concerning the taxation of the salary paid (added) to employees (including without documentary registration), passive incomes, the additional benefits, other payments and compensations, taxable, including as a result of not conclusion the taxpayer of employment contracts with employees according to the law;

20.1.48. perform other powers provided by the law";

To add 2) with Item 20.1-1 of the following content:

"20.1-1. The monitoring bodies determined by subitem 41.1.2 of Item 41.1 of article 41 of this Code have the right:

20.1-1.1. receive gratuitously in accordance with the established procedure from state bodies and local government bodies, the companies, organizations and the organizations, irrespective of pattern of ownership and their officials, taxpayers information, documents and materials concerning accounting and administration of duty, the excise tax, the value added tax, other taxes which according to tax, customs and other legislation are levied in connection with import (transfer) of goods to customs area of Ukraine or the territory of free customs zone or export (transfer) of goods from customs area of Ukraine or the territory of free customs zone;

20.1-1.2. carry out the analysis and exercise risk management for the purpose of determination of forms and amounts of customs control;

20.1-1.3. perform other powers provided by the law";

"Customs" to exclude 3) in Item 20.2 of the word;

Item 20.4 to state 4) in the following edition:

"20.4. The head of territorial authority of the central executive body realizing the state tax policy has the right to provide to official (office) persons of body (its structural divisions) of power on accomplishment of the certain functions provided by this Code, the legislation concerning payment of single fee, the legislation of other questions, control of which observance is imposed on monitoring bodies, within the powers determined by the relevant provision about such territorial authority.

The head of the central executive body realizing the state tax policy has the right to provide to official (office) persons of the office of such body, territorial authorities of the central executive body realizing the state tax policy, powers on accomplishment of the certain functions provided by this Code, the legislation concerning payment of single fee, other legislation, control of which observance is imposed on the central executive body realizing the state tax policy, the legislation on public service and other laws.

The list of the delegated powers is determined by regulations on the central executive body realizing the state tax policy which affirm the Cabinet of Ministers of Ukraine, and regulations on territorial authority of the central executive body realizing the state tax policy which affirm the central executive body which realizes the state tax policy, and is subject to approval of the central executive body which provides forming and realizes the state financial policy.

Heads of territorial authorities of the central executive body realizing the state tax policy are appointed to positions and dismissed by the head of the central executive body realizing the state tax policy according to the legislation on public service, without approval of heads of local public administrations".

10. In Article 21:

1) in Item 21.1:

state subitem 21.1.8 in the following edition:

"21.1.8. promulgate on the official website of the central executive body realizing the state tax policy, the list of authorized persons of the monitoring bodies determined by subitem 41.1.1 of Item 41.1 of article 41 of this Code, and the functions transferred to such persons in the cases provided by this Code";

add with subitem 21.1.8-1 of the following content:

"21.1.8-1. promulgate on the official website of the central executive body realizing the state customs policy, the list of authorized persons of the monitoring bodies determined by subitem 41.1.2 of Item 41.1 of article 41 of this Code, and the functions transferred to such persons in the cases provided by this Code and the Customs code of Ukraine";

in subitem 21.1.9 of the word of "tax and customs policy" shall be replaced with words "the state tax and state customs policy";

Item 21.2 to add 2) with subitem 21.2.2 of such content:

"21.2.2. The illegal refusal in provision of individual tax consultation is the basis for application to the guilty person of official (office) person of monitoring body of authority punishment according to the procedure, provided by the law".

11. The second offer of Item 30.8 of Article 30 to exclude.

12. In Item 35.4 of Article 35:

in paragraph one of the word "Monthly on the Official Site" shall be replaced with words "On the official site";

in the paragraph the second shall be replaced with words the word "information" "monthly information";

in paragraph three shall be replaced with words the word "information" "daily information";

in paragraph four of the word "provides forming of the state tax policy" shall be replaced with words "provides forming and realizes the state financial policy".

13. In Article 39:

1) in Item 39.2:

in subitem 39.2.1:

exclude subitem 39.2.1.3;

add subitem 39.2.1.4 with the subitem "e" of the following content:

"e) transactions as a result of which the amount of the income and/or financial result of the taxpayer decreases owing to complete or partial, irretrievable or temporary transfer of function together with tangible and/or intangible assets (or without them), benefits, risks and opportunities to other taxpayer (other person) when in relations between untied persons such transfer would not be performed without compensation irrespective of whether such transactions are reflected in financial accounting";

in subitem 39.2.2.5 subitem 39.2.2:

the tenth to exclude the paragraph;

add with paragraphs the twelfth - the nineteenth the following content:

"Risk analysis which undertake the parties of controlled transaction during determination of comparability of commercial and/or financial terms of transaction to conditions of uncontrollable transactions is performed taking into account the following criteria:

a) determination and the characteristic of substantial economic risks which undertake the parties of the transaction based on the signed agreements;

b) whether the party which accepts risk, control of creation of risk and management of it performs and also whether has capability and the power to do it;

c) whether has person accepting risk, solvency to incur such risk and resources necessary for covering of such risk;

d) determination of the actual behavior of the parties of the transaction in connection with control of substantial economic risks, in particular, determination, what party of the transaction exercises control or takes measures for minimization of such risks what party receives the negative effects caused by acceptance of such risks what party has financial opportunity to bear such risks;

ґ) determination taking into account the previous criteria whether there corresponds the actual behavior of the parties of the transaction to conditions of acceptance of the risks provided by agreements, in particular:

whether carry out the parties of the transaction of condition of agreements;

whether the party accepting risk exercises control of risk and whether has financial opportunity to incur such risk and/or opportunities and resources for its covering";

2) in Item 39.3:

in subitem 39.3.2:

state subitem 39.3.2.1 in the following edition:

"39.3.2.1. Compliance of conditions of controlled transaction to the principle of "outstretched arm" is determined by means of application of method of transfer pricing which is the most reasonable to the facts and circumstances of making of the controlled transaction, except cases when this Code determines requirements for obligation of application of specific method of establishment of compliance of conditions of controlled transactions to the principle of "outstretched arm" for controlled transactions of certain type";

in paragraph four of subitem 39.3.2.9 of the word and figures "more than 20 percent or the legal entity from shares of direct (indirect) participation has as the participant (shareholder) no more than 20 percent" shall be replaced with words also in figures "in the amount of 25 and more percent and/or has as the participant (shareholder) no legal entity from shares of direct (indirect) participation in the amount of 25 and more percent";

add subitem 39.3.3 with subitems 39.3.3.4 - 39.3.3.8 such contents:

"39.3.3.4. For controlled transactions with primary goods establishment of compliance of conditions of controlled transactions to the principle of "outstretched arm" is performed by method of the comparative uncontrollable price.

For the purposes of this subitem primary goods are understood as goods for which untied persons as reference point (standard) for price fixation of uncontrollable transactions use the quoted prices. The list of primary goods is determined by the Cabinet of Ministers of Ukraine.

In case of application of method of the comparative uncontrollable price for controlled transactions with primary goods the price comparison of controlled operation can be performed with the price of comparable uncontrollable transactions which are actually performed by the taxpayer or other persons with untied persons, and/or at the quoted prices.

In case of use of the price of uncontrollable transactions as comparative for controlled transaction, such uncontrollable transactions shall be regular, with several partners and in amounts, comparable subjects which were used in controlled transaction.

The quoted prices which are used for comparison with the prices of controlled transactions shall answer comparability conditions, certain subitem 39.2.2 of Item 39.2 of this Article. In case of availability between the conditions of controlled transaction and conditions of uncontrollable transactions or conditions determining the quoted price of primary goods, considerable differences which significantly influence transaction price with primary goods the corresponding adjustments are performed.

The central executive body realizing the state tax policy will promulgate the recommended (incomplete) list of sources of information for receipt of the quoted prices on the official web portal prior to the beginning of accounting year.

The central executive body which provides forming and realizes the state financial policy can determine according to requirements and methods, stipulated in Article the 39th this Code, separate procedures for establishment of compliance of conditions of controlled transaction concerning primary goods to the principle of "outstretched arm". Such procedures and changes in them shall be approved till July 1 of the current year and become effective not earlier than since January 1 the year following after year of their approval. In case of approval of such procedures, establishment of compliance of conditions of controlled transactions to the principle of "outstretched arm" for controlled transactions with primary goods is performed by taxpayers and monitoring bodies taking into account requirements of the corresponding procedure.

39.3.3.5. The taxpayer who performs controlled transactions with primary goods notifies the central executive body realizing the state tax policy on the conclusion of the relevant agreement (contract) in form and according to the procedure, the provided subitem 39.3.3.3 of subitem 39.3.3 of this Item.

The direction the payer of such notification is confirmation of the fact that approval of essential terms of the contract (contract), in particular characteristics and the price of goods, amount, delivery conditions, payment and responsibility, was performed by the parties of the controlled transaction at the time of the conclusion of such agreement.

If information specified in the notification is approved with the actual behavior of the parties or with other facts of controlled transaction, the price comparison of controlled transaction with the quoted prices is made for the next date before the date of pricing approved by the parties of controlled transaction.

39.3.3.6. If the taxpayer does not direct the notification according to subitem 39.3.3.5 of subitem 39.3.3 of this subitem or

information specified in the notification does not correspond to contractual conditions, or

the parties of the transaction after the direction of the notification will make changes to terms of the contract (contract) concerning characteristics, the prices, total cost, quantity and amount of goods, delivery conditions and payment, responsibility of the parties, or

conditions of such agreement (contract) will not be approved with the actual behavior of the parties of the transaction and the actual conditions of its carrying out,

the monitoring body carries out price comparison of controlled transaction with the quoted prices of date of transition of the property right of subject of the controlled transaction or shipping date of goods according to commodity-transport documents (the bill of lading or other document depending on the vehicle) according to conditions and the actual circumstances of implementation of such controlled transaction.

39.3.3.7. If for price comparison of controlled transaction with primary goods the range of the quoted prices specified in information source was used, the minimum and maximum values of such range corresponds to the minimum and maximum value of price range for the purposes of subitem 39.3.2.3 of subitem 39.3.2 of Item 39.3 and subitem 39.5.4 of Item 39.5 of this Article.

In case of use of several ranges of the quoted prices calculation of price range according to the procedure provided by the paragraph the fourth subitem 39.3.2.3 of subitem 39.3.2 of this Item is made.

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