LAW OF UKRAINE

of December 28, 2014 No. 71-VIII

About introduction of amendments to the Tax Code of Ukraine and some legal acts of Ukraine of rather tax reform

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:

Item 8.3 of Article 8 to state 1) in the following edition:

"8.3. The taxes and fees established according to the list and within the extreme sizes of the rates determined by this Code, decisions of village, settlement and city councils within their powers belong to local and are obligatory to payment in the territory of the corresponding territorial communities";

Item 9.1 of Article 9 to state 2) in the following edition:

"9.1. Treat nation-wide taxes:

9.1.1. income tax of the companies;

9.1.2. income tax;

9.1.3. value added tax;

9.1.4. excise tax;

9.1.5. ecological tax;

9.1.6. rent payment;

9.1.7. duty";

Article 10 to state 3) in the following edition:

"Article 10. Local taxes

10.1. Treat the local taxes:

10.1.1. property tax;

10.1.2. single tax.

10.2. Treat local charges:

10.2.1. collection for parking lots of vehicles;

10.2.2. tourist tax.

10.2. Local councils surely establish the single tax and the property tax (regarding vehicle tax and payment for the earth).

10.3. Local councils within the powers determined by this Code resolve issues according to requirements of this Code for establishment of the property tax (regarding the non-personal tax, other than the parcel of land) and establishment of collection for parking lots of vehicles, tourist tax.

10.4. Establishment of the local taxes and charges which are not provided by this Code is forbidden.

10.5. Transfer of the local taxes and charges in the corresponding local budgets is performed according to the Budget code of Ukraine";

4) in Article 12:

to state subitems 12.2.1 and 12.2.2 of Item 12.2 in the following edition:

"12.2.1. Establishment in the territory of the Autonomous Republic of Crimea of rent payment for use of natural resources for mining (except rent payment for use of natural resources for mining of nation-wide value), rent payment for use of natural resources for the purpose of, not connected with mining, within their limiting rates determined by this Code;

12.2.2. Change of the size of rates of the rent payment provided by subitem 12.2.1 of this Item, within its limiting rates determined by this Code, according to the procedure, established by this Code";

to state subitem 12.3.5 of Item 12.3 in the following edition:

"12.3.5. If the village, settlement or city council did not make the decision on establishment of the corresponding local taxes and charges and the excise tax regarding realization by subjects of managing of retail trade of excise goods who are obligatory according to regulations of this Code, such taxes before decision making are levied proceeding from regulations of this Code using their minimum rates, and the payment for the earth is levied using the rates operating till December 31 of the year preceding budget period in which application of payment for the earth is planned";

in Item 12.4:

state subitem 12.4.1 in the following edition:

"12.4.1. Establishment of rates of the local taxes and charges within the rates determined by this Code";

add with subitem 12.4.4 of the following content:

"12.4.4. Establishment in the limits determined by this Code, rates of the excise tax from the excise goods realized by subjects of managing of retail trade";

5) in Item 14.1 of Article 14:

exclude subitem 14.1.2;

in subitem 14.1.4 of the word "and also the extraordinary tax on transaction on alienation of securities and transactions with derivatives" to exclude;

in subitem 14.1.5:

words and figures of "more 1,2 of percent" shall be replaced with words also in figures "over percent 0,5", and to replace figures "2204" with figures "2203, 2204";

in subitem 14.1.6 after words of "alcoholic beverage products" to add with words "oil products, motor fuel of the alternative and liquefied gas";

state subitem 14.1.9 in the following edition:

"14.1.9. Residual cost of fixed assets, other non-current and intangible assets for the purposes of the Section III - the amount of residual cost of such means and assets which is determined as difference between the original cost and the amount calculated depreciation according to provisions of the Section III of this Code";

state Item 14.1.11 in the following edition:

"14.1.11. Bad debt - the debt corresponding to one of the following signs:

a) debt on obligations according to which the term of limitation period expired;

b) overdue debt of the died physical person, in case of absence at it heritable property on which collection can be turned;

c) overdue debt of persons who judicially are acknowledged it is unknown absent, are declared the dead;

d) debt of physical persons which is forgiven by the creditor, except for to debt of faces tied with such creditor and persons which are (being) with such creditor in employment relationships within the last three years from the moment of forgiveness;

ґ) debt of person, the size of cumulative requirements of the creditor on which does not exceed the size of indisputable requirements of the creditor which is minimum established by the legislation for initiation of proceeedings on bankruptcy, and for physical persons - 50 percent one minimum wages (per year), established for January 1 of accounting tax year (in case of lack of legislatively approved insolvency proceeding of physical persons). Such debt is recognized hopeless if adequate measures, stipulated by the legislation did not entail Ukraine which were used by the creditor to its collection;

e) asset in the form of corporate laws or not debt securities, the issuer declared bankrupt or it is stopped as the legal entity in connection with its liquidation;

e) the amount of residual prize fund of lottery as of December 31 every year;

є) debt on obligations according to which the term of limitation period expired;

g) debt which collection became impossible in connection with action of force majeure circumstances, natural disaster (force majeur circumstances) confirmed according to the procedure, stipulated by the legislation";

subitems 14.1. 14.1.20, 14.1.21, 14.1.27 and 14.1.33 to exclude 19,;

in the subitem 14.1.37 to replace figures "XI" with figures "IX";

state subitem 14.1.49 in the following edition:

"14.1.49. Dividends - payment which is made by the legal entity - 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";

add with subitems 14.1.52-1 and 14.1.52-2 of the following content:

"14.1.52-1. the agreement of voluntary medical insurance - the insurance contract providing insurance payment which is performed to healthcare institutions in case of the loss occurrence connected with disease of insured person or accident. Such agreement shall provide also the minimum term of its action one year and return of insurance payments only to the insurer in case of early agreement cancelation;

14.1.52-2. the insurance contract of additional pension is insurance contract which provides obligation of the insurer on implementation of insurance payment (payments) and/or payments in the form of the annuity in case of achievement by the insured person of retirement age determined by the statement of insured person in the insurance contract according to the legislation taking into account that such retirement age cannot be more than 10 years less than retirement age which grants pension entitlement on obligatory national pension insurance. Early termination of the agreement before achievement by insured person of the retirement age specified in the agreement is impossible, except cases: availability medical the confirmed critical condition of health (oncological disease, stroke, etc.) or establishments to insured person of disability of I or II groups; departure of the insurer and/or insured person on permanent residence out of limits of Ukraine; death of insured person. Only insured person or heirs according to the legislation can be the beneficiary under such agreement. Features of change of the insurer according to the insurance contract of additional pension are established according to the law";

exclude subitem 14.1.56;

in the subitem 14.1.59 to replace figures "XVI" with figures "IX";

exclude subitems 14.1.62-14.1.68;

in the subitem 14.1.72 to replace figures "XIII" with figures "XII";

in the subitem 14.1.77 to replace figure "2" with figure "1";

state subitem 14.1.84 in the following edition:

"14.1.84. Other terms for the purposes of the Section III are used in the values determined by the Law of Ukraine "About financial accounting and the financial reporting in Ukraine", the national provisions (standards) of financial accounting and international accounting standards enacted according to the legislation";

subitems 14.1. 14.1.110 and 14.1.111 to exclude 92,;

state subitem 14.1.106 in the following edition:

"14.1.106. The maximum retail prices - the prices established on excise goods (products taking into account all types of tax (charges). The excise tax from the excise goods realized by subjects of managing of retail trade does not join in the maximum retail price.

The maximum retail prices on excise goods (products) are established by producers or importers of goods (products) by declaring of such prices according to the procedure, established by this Code. Sale by subjects of managing of retail trade of excise goods on which the maximum retail prices are established cannot be performed at the prices exceeding the maximum retail prices increased by the amount of the excise tax from retail trade of excise goods";

state subitem 14.1.116 in the following edition:

"14.1.116. Non-state pension provision - provision of pensions which is performed by non-state pension funds, insurance companies and banks according to the Law of Ukraine "About non-state pension provision" and/or insurance companies according to insurance contracts of life pension according to the Law of Ukraine "About obligatory national pension insurance" and/or insurers according to insurance contracts of additional pension according to subitem 14.1.52-2 of Item 14.1 of article 14 of this Code";

exclude subitem 14.1.117;

in subitem 14.1.125 of the word and figures "the Section XIII, Chapter 2 of the Section XIV" shall be replaced with words also in figures "the Section XII, Chapter 1 of the Section XIV";

in the subitem "an" of the subitem 14.1.126 of figure "XI" to replace with figures "IX";

state subitem 14.1.129 in the following edition:

"14.1.129. Objects of the residential real estate - the buildings carried according to the legislation to dwelling stock, country and garden houses;

14.1.129.1. Buildings, are carried to housing stock, are divided into the following types:

a) the apartment house - the building of capital type built with observance of the requirements established by the law, other regulatory legal acts, and intended for permanent accommodation in it. Apartment houses are divided into apartment houses of farmstead type and apartment houses of room type of different number of storeys. The apartment house of farmstead type - the apartment house located on the separate parcel of land which consists of residential and auxiliary (non-residential) rooms;

b) extension to the apartment house - the part of the house located out of contour of its main outside walls and which has with the main part of the house one (or more) general main wall;

c) the apartment - the isolated room in the apartment house intended and suitable for permanent accommodation in it;

d) cottage - one - the polutoraetazhny house of small living space for permanent or temporary residence with personal plot;

ґ) rooms in multi-family (utility) apartments - the isolated rooms in the apartment in which two or more tenants live;

14.1.129.2. the garden house - the house for summer (seasonal) use which in questions of regulation of building area, external designs and the engineering equipment do not answer the standard rates established for apartment houses;

14.1.129.3. the country house - the apartment house for use within year for the purpose of country rest";

add Item with subitem 14.1.129-1 of the following content:

"14.1.129-1. objects of the non-residential real estate - the buildings, rooms which are not carried according to the legislation to dwelling stock. In the non-residential real estate allocate:

a) buildings hotel - hotels, motels, campings, boarding houses, restaurants and bars, tourist bases, mountain shelters, the camp for rest, rest house;

b) office buildings - buildings of financial servicing, administrative and household buildings for the office and administrative purposes;

c) buildings trade - shopping centers, department stores, shops, the covered markets, pavilions and halls for fairs, service stations of cars, the dining room, cafe, snackbars, bases and warehouses of trade enterprises and public catering, the building of public service establishments;

d) garages - garages (land and underground) and the covered car parks;

ґ) industrial buildings and warehouses;

e) buildings for public statements (casino, gaming houses);

e) economic (home) buildings - auxiliary (non-residential) rooms to which sheds, sheds, garages, summer kitchens, workshops, bathrooms, cellars, canopies, boiler rooms, boiler rooms, transformer substations and other belong;

є) other buildings";

exclude subitem 14.1.132;

state subitem 14.1.135 in the following edition:

"14.1.135. The taxation for the purposes of the Section IX of this Code - the taxation rent payment for use of natural resources for mining, the taxation rent payment for use of natural resources for the purpose of, not connected with mining, the taxation rent payment for use of radio-frequency resource of Ukraine, the taxation of rent payment for special use of water, the taxation of rent payment for special use of forest resources, the taxation of rent payment for oil transportation and oil products trunk oil pipelines and oil pipelines, transit transportation by natural gas pipelines and ammonia on the territory of Ukraine";

in the subitem 14.1.136 of figure "XIII" to replace with figures "XII";

state subitem 14.1.144 in the following edition:

"14.1.144. Beer - the foamy alcoholic drink saturated with carbon dioxide with content of ethyl alcohol from 0,5 of percent of volume units received during fermentation of the become tipsy must by beer yeast, UKT foreign trade activities relating to commodity group by code 2203";

exclude subitem 14.1.146;

state subitem 14.1.147 in the following edition:

"14.1.147. Payment for the earth - obligatory payment as a part of the property tax which is levied in the form of the land tax and the rent for the parcels of land of the state-owned and utility property";

state subitem 14.1.149 in the following edition:

"14.1.149. The payer of rent payment for the purposes of the Section IX of this Code - the payer of rent payment for use of natural resources for mining, the payer of rent payment for use of natural resources for the purpose of, not connected with mining, the payer of rent payment for use of radio-frequency resource of Ukraine, the payer of rent payment for special use of water, the payer of rent payment for special use of forest resources, the payer of rent payment for oil transportation and oil products trunk oil pipelines and oil pipelines, transit transportation by natural gas pipelines and ammonia on the territory of Ukraine";

to add subitem 14.1.150 after the word "briquetting" with the words "enrichment by physical and chemical methods (without high-quality change of mineral forms of minerals, their modular and phase condition, kristallokhimichesky structure), except for agglomerations / «¬«¼¬«óá¡¿n ores with heat treatment";

subitems 14.1. 151, 14.1. 168, 14.1. 169, 14.1. 184, 14.1. 14.1.189 and 14.1.192 to exclude 188,;

state subitem 14.1.193 in the following edition:

"14.1.193. Permanent mission - the permanent place of activities through which economic activity of the nonresident in Ukraine is fully or partially carried out, in particular: management place; branch; office; factory; workshop; installation or construction for investigation of natural resources; the mine, oil/gas well, pit or any other place of production of natural resources warehouse or the room which is used for the goods delivery, the server.

For the purpose of the taxation the term "permanent mission" includes the building site, construction, assembly or mounting object or the related supervising activities if duration of works connected with such platform, object or activities exceeds six months; provision of services by the nonresident (except services in provision of personnel), including consulting, through employees or other personnel hired by it for such purposes, but 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 six months, in any monthly period; the residents having powers: act on behalf only of such nonresident (negotiation of rather essential conditions and/or the conclusion of agreements (contracts) on behalf of this nonresident) that leads to origin at this nonresident of the civil laws and obligations; and/or to contain (to store) inventories of the goods belonging to the nonresident which of structure delivery of goods on behalf of the nonresident, except the residents having the status of warehouse of temporary storage or customs licensed warehouse is performed.

Permanent mission is not use of buildings or constructions only for the purposes of storage, demonstration or goods delivery or products belonging to the nonresident; stock holding of the goods or products belonging to the nonresident is exclusive for the purpose of storage, demonstration; stock holding of the goods or products belonging to the nonresident is exclusive for the purpose of conversion by other company; content of the permanent place of activities only for the purposes of purchase of goods or products or for information collection for the nonresident; the direction in the order of face of physical persons within agreement performance about services in provision of personnel; content of the permanent place of activities is exclusive for the purpose of implementation for the nonresident of any other activities of preparatory or auxiliary nature";

subitems 14.1. 14.1.208 and 14.1.211 to exclude 201,;

in Item 14.1.212:

the paragraph one to add with the words "realization by subjects of managing of retail trade of excise goods";

add with the paragraph the second the following content:

"Realization by subjects of managing of retail trade of excise goods - sale of beer, alcoholic beverages, tobacco products, tobacco and industrial substitutes of tobacco, the goods specified in subitem 215.3.4 of Item 215.3 of article 215 of this Code, directly to citizens and other final consumers for their personal non-commercial use irrespective of form of calculations including on flood at restaurants, cafe, bars, other subjects of managing of public catering";

exclude subitem 14.1.215;

state subitem 14.1.217 in the following edition:

"14.1.217. Rent payment - nation-wide tax which is levied for use of natural resources for mining, for use of natural resources for the purpose of, not connected with mining, for use of radio-frequency resource of Ukraine, for special use of water, for special use of forest resources, for oil transportation and oil products trunk oil pipelines and oil pipelines, transit transportation by natural gas pipelines and ammonia on the territory of Ukraine";

add subitem 14.1.224 with the words "or performing production of oil products, motor fuel of the alternative and liquefied gas";

state subitem 14.1.225 in the following edition:

"14.1.225. Royalty - any payment received as remuneration for use or for provision of the right to use object of intellectual property right, namely on any literary works, works of art or sciences, including computer programs, other records on data carriers, video or audio cassettes, cinema movies or films for radio - or television broadcasting, transfer (program) of the organizations of broadcasting, other audiovisual works, any rights protected by the patent, any registered trademarks (signs on goods and services) intellectual property rights on design, confidential drawings, model, formula, process, intellectual property rights on information of rather industrial, commercial or scientific experience (know-how).

Royalty the payments received are not considered:

as remuneration for use of the computer program if conditions of use are limited to functional purpose of such program and its reproduction is limited the number of the copies necessary for such use (use by "final consumer");

for acquisition of copies (copies, copies) of intellectual property items which are incarnate electronically, for use on the functional purpose for final consumption;

for acquisition of things (including data carriers) in which are realized or on which there are objects of intellectual property right, determined in paragraph one of this subitem, in use, ownership and/or the order of person;

for assignment of rights on objects of intellectual property right if conditions of assignment of rights on object of intellectual property right grant the right to person who acquires such rights to sell or perform alienation otherwise of intellectual property right or to promulgate (to divulge) confidential drawings, models, formulas, processes, intellectual property rights on information of rather industrial, commercial or scientific experience (know-how), except as specified, when such promulgation (disclosure) is obligatory according to the legislation of Ukraine";

exclude subitem 14.1.228;

in subitems 14.1.234 and 14.1.235 to replace the word and figure of "Chapter 2" with the word and figure of "Chapter 1";

add subitem 14.1.235 with the paragraph the second the following content:

"The rights of property/use of the parcels of land shall be drawn up and registered according to the legislation";

state subitem 14.1.240 in the following edition:

"14.1.240. Rate of the land tax for the purposes of the Section XII of this Code - legislatively certain annual amount of payment for the unit area of the taxable parcel of land";

subitems 14.1. 243, 14.1. 14.1.250 and 14.1.256 to exclude 246,;

in subitem 14.1.257 to exclude the paragraph of the seventh;

in subitem 14.1.262 to replace the word and figure of "Chapter 2" with the word and figure of "Chapter 1";

add with subitems 14.1.269 and 14.1.270 of the following content:

"14.1.269. Platts - the international, global unified system of information monitoring of dynamics of the market and pricing in industry of the extracting and fuel and energy industry;

14.1.270. Platts indicators - the indexes officially determined by world news agency Platts is also base for use by business entities";

Item 20.1 of Article 20 to add 6) with two new subitems of the following content:

"20.1.43. Perform correctness of conducting financial accounting according to national provisions (standards) of financial accounting or international accounting standards;

20.1.44. Perform correctness and completeness of determination of the income, expenses and financial result to the taxation according to financial accounting according to national provisions (standards) of financial accounting or international accounting standards".

With respect thereto to consider subitem 20.1.43 subitem 20.1.45;

Article 35 to add 7) with Item 35.4 of the following content:

"35.4. Monthly on the official site of the central executive body realizing the state tax policy it will be promulgated:

information on tax payment by subjects of natural monopolies and subjects of managing which are payers of rent payment for use of natural resources;

information on subjects of managing who have tax debt, with indication of heads of such subjects of managing, and the amounts of tax debt by payments and territorial authorities of the central executive body realizing the state tax and customs policy with indication of heads of such territorial authorities.

The form of such information and procedure for its promulgation are established by the central executive body providing forming of the state tax policy";

8) in Item 44.2 of Article 44:

the paragraph one to state in the following edition:

"44.2. For calculation of the taxation object the income tax payer uses accounting data and the financial reporting according to the income, expenses and financial results to the taxation";

to add paragraph two after words of "the income and expenses" with the words "also determine the taxation object by the income tax";

third to state the paragraph in the following edition:

"Legal entities - payers of the single tax who answer the criteria determined by the subitem 3 of Item 291.4 of Article of 291 of this Code keep the simplified financial accounting of the income and expenses for the purpose of calculation of the taxation object by the technique approved by the central executive body which provides forming and realizes the state tax and customs policy";

the fourth to exclude the paragraph;

9) in Article 49:

the paragraph one of Item 49.2 to state in the following edition:

"49.2. The taxpayer shall for each accounting period established by this Code in which there are taxation objects, or in case of availability of indicators which are subject to declaring, according to requirements of this Code to submit tax declarations on each separate tax which payer he is";

add with subitem 49.2-1 of the following content:

"49.2-1. The payers having acting (including suspended) shall for each accounting period established by this Code to submit to the license for the right of implementation of activities with the excisable products which are subject to licensing according to the legislation tax declarations irrespective of, such payers carried out economic activity in the accounting period";

add Item 49.4 with the paragraph the second the following content:

"Tax statements on the value added tax move electronically in monitoring body all payers of this tax with observance of condition concerning registration of the digital signature of advance holders according to the procedure, determined by the legislation";

Article 51 to state 10) in the following edition:

"Article 51. Submission of data on the amounts of the paid income to taxpayers - physical persons

51.1. Taxpayers, including tax agents shall give to monitoring bodies to the terms established by this Code for the tax quarter, tax calculation of income amounts added (paid) for benefit of taxpayers.

51.2. In the cases determined by this Code calculations move in electronic form";

Subitem 54.3.1 of Item 54.3 of Article 54 to add 11)  with the words "and when implementing tax control measures established facts of implementation by the taxpayer of activities that led to emergence of the taxation objects, availability of indicators which are subject to declaring, according to requirements of this Code and the availability operating (including suspended) licenses for the right of implementation of activities with the excisable products which are subject to licensing according to the legislation";

12) in Article 57:

state Item 57.1 in the following edition:

"57.1. The taxpayer shall pay independently the amount of the tax liability specified in the tax declaration provided to them within 10 calendar days following behind the last day of the corresponding deadline provided by this Code for submission of the tax declaration except the cases established by this Code.

The tax agent shall pay the amount of the tax liability (the amount of the accrued (withheld) tax) which is independently determined by it from the income which is paid for benefit of the taxpayer - physical person and due to such payment to the terms provided by this Code.

The amount of the tax liability determined in the customs declaration, the taxpayer shall pay to / or in day of submission of the customs declaration.

Income tax payers (except newly created, producers of agricultural products, institutes of joint investment, non-profitable organizations (organizations) and taxpayers which have income which is considered in case of determination of the taxation object for the last annual accounting tax period do not exceed twenty million hryvnias) monthly, within twelve months, pay advance installment on the income tax according to the procedure and in the terms established for monthly tax period. The amount of monthly advance installments is estimated in the amount of at least 1/12 of the added tax amount on profit of the companies for the previous accounting (tax) year reduced by the amount of the paid advance installments on this tax in case of dividend payout which remained not included in reduction of the tax liability on this tax without submission of the tax declaration.

At the same time the twelve-monthly period for payment of advance installments is determined from June of the current accounting (tax) year to May of the next accounting (tax) year inclusive.

The taxpayers registered within accounting (tax) year (again) pay the income tax based on the annual tax declaration for the period to activities in reporting (tax) year and do not pay advance installment.

Taxpayers who have income which is considered in case of determination of the taxation object for the last annual accounting (tax) period do not exceed 20000000 hryvnias, and non-profitable organizations (organizations) pay the income tax based on the tax declaration submitted to monitoring bodies for accounting (tax) year and do not pay advance installments.

The taxpayer who following the results of last accounting (tax) year did not get profit or received loss, did not charge the tax liabilities and had no basic indicator for determination of advance installments next year, and following the results of the first quarter gets profit, shall submit the tax declaration for the first half of the year, three accounting quarters (tax) year and for accounting (tax) year for charge and payment of the tax liabilities.

As a part of the annual tax declaration the taxpayer calculation of monthly advance installments which shall be paid during the next twelve-monthly period moves. The amount of advance installments determined in calculation is considered agreed sum of monetary commitments.

The tax declaration, including calculation of monthly advance installments, for base accounting (tax) year move till June 1 of the year following after accounting (tax) year.

Taxpayers on income gained from bookmaker activities, gamblings (including casino), monthly, within twelve months, pay advance installment on tax on the income according to the procedure and in the terms established for monthly tax period. The amount of monthly advance installments is estimated at the rates determined in subitems 136.4. 1, 136.4.2 Items 136.4 of article 136 of this Code, the amounts of actually gained income during monthly tax period, without submission of the tax declaration";

add with Item 57.1-1 of the following content:

"57.1-1. Payment procedure of the tax liability on the income tax in case of dividend payout

57.1-1.1. In case of decision making about dividend payout the income tax payer - the issuer of corporate laws on which dividends are charged carries out the specified payments to the owner of such corporate laws irrespective of whether there is taxable profit calculated by the rules determined by article 137 of this Code.

57.1-1.2. Except the cases provided by subitem 57.1-1.3 of this Item, the issuer of corporate laws making the decision on dividend payout to the shareholders (owners) assesses and brings in the budget advance installment on the income tax.

The advance installment is calculated from the amount of exceeding of the dividends which are subject to payment over value of the taxation object for the corresponding tax (reporting) year by results of which dividends are paid, on which monetary commitment it is extinguished. In the presence of outstanding monetary commitment the advance installment is calculated from all amount of the dividends which are subject to payment. The advance installment is estimated at the rate, stipulated in Item 136.1 articles 136 of this Code. The amount of dividends which is subject to payment does not decrease by the amount of advance installment.

At the same time if dividends are paid for incomplete calendar year, for calculation of the amount of the specified exceeding value of the taxation object calculated in proportion to the number of months for which dividends are paid is used. The specified advance installment is brought in the budget to / or along with dividend payout.

The amount of the paid advance installments on the income tax in case of dividend payout is subject to transfer in reduction of the tax liability on the income tax declared in the tax declaration for accounting (tax) year.

The amount of the paid advance installments on the income tax in case of dividend payout is not subject to return to the taxpayer or transfer on account of repayment of monetary commitments on other taxes and fees (obligatory payments).

In case of dividend payout in form, excellent from cash (except the cases provided by subitem 57.1-1.3 of this Item), base for charge of advance installment according to paragraphs to the first and second this subitem is the cost of such payment which is determined in the decision on dividend payout, or the cost of such payment calculated at the regular prices in the transactions recognized according to article 39 of this Code controlled. The obligation on charge and payment of advance installment on tax at the rate determined by Item 136.1 of article 136 of this Code is assigned to any issuer of corporate laws who is resident irrespective of, such issuer on the tax discharge according to this Code, or in the form of application of rate of tax another, than stipulated in Item 136.1 articles 136 of this Code uses privileges.

This provision extends also to the state nekorporatizirovanny, state or utility companies which rank the amounts of dividends in the amount of, established by executive body which sphere of management the companies, according to the state or local budgets treat.

At the same time if the payment by person is called the dividend, such payment is assessed in case of payment according to the regulations determined according to provisions of this Item irrespective of whether person is taxpayer.

57.1-1.3. The advance installment provided by subitem 57.1-1.2 of this Item is not levied in case of dividend payout:

for benefit of owners of corporate laws of mother company who are paid within the amounts of income of such company gained in the form of dividends from other persons. If the benefits amount of dividends for benefit of owners of corporate laws of mother company exceeds the amount of the dividends received by such company, the dividends paid within such exceeding are subject to the taxation by the rules established by subitem 57.1-1.2 of this Item. For the purpose of the taxation the mother company keeps the accruing result account of the dividends received by it from other persons, and the dividends paid to advantage of owners of corporate laws of such company and reflects in tax statements dividends according to the procedure, determined by the central executive body which performs forming and realizes the state tax and customs policy;

the income tax payer whose profit is exempted from the taxation according to provisions of this Code, in the amount of the profit exempted from the taxation during the period for which dividends are paid;

to physical persons.

57.1-1.4. Dividend payout for benefit of physical persons (including nonresidents) according to shares or corporate laws which have the status exclusive or other status providing payment of the fixed size of dividends or the amount which more benefits amount, calculated on any other share (corporate law) emitted by such taxpayer is equated for the purpose of the taxation to salary payment with the corresponding taxation.

At the same time such payment is not subject to the taxation as dividends according to provisions of the Section IV of this Code.

Institutes of joint investment are exempted from obligation of payment of advance installments on the income tax in case of dividend payout.

57.1-1.5. The advance installment on the income tax paid in connection with charge/payment of dividends is integral part of the income tax and cannot be regarded as tax which is levied in case of repatriation of dividends (their payment for benefit of nonresidents) according to Item 141.4 of Article of 141 of this Code or international treaties of Ukraine";

in the subitem 57.3 of figure "54.3.1, 54.3.2, 54.3.4-54.3.6" to replace with figures "54.3.1-54.3.6";

In paragraph one of Item 63.7 of Article 63 the word "patents" to exclude 13);

In paragraph four of Item 64.7 of Article 64 of the word "has the right to make decisions" makes the decision shall be replaced with words 14) "";

15) in Article 70:

in subitem 70.12.6 of Item 70.12 to exclude the word of "patents";

in Item 70.16:

the paragraph one to state in the following edition:

"70.16. Executive bodies and local government bodies, self-employed persons, tax agents give gratuitously according to the procedure, established by the Cabinet of Ministers of Ukraine, to monitoring bodies in the place of the stay information on physical persons which is connected with registration of such persons as taxpayers, charge, tax payment and control of observance of the tax legislation of Ukraine, with indication of registration numbers of accounting cards of the taxpayer or series and passport number (for the physical persons having mark in the passport about the right to make any payments on series and passport number), including";

in subitem 70.16.6 and figures "265.7.4 Items 265.7 of article 265 of this Code" shall be replaced with words also in figures "266.7.4 Items 266.7 of article 266 of this Code";

Paragraph two of Item 73.3 of Article 73 to replace 16) with four paragraphs of the following content:

"Such request is signed by the head (deputy manager) of monitoring body and shall contain:

1) the bases for sending an inquiry according to this Item, with indication of information which confirms it;

2) the list of required information, and the list of documents which are offered to be provided;

3) seal of monitoring body";

17) in Item 75.1 of Article 75:

add subitem 75.1.1 with the words "and data of system of electronic administration of the value added tax (data of the body performing treasurer servicing of budgetary funds in which accounts of payers in system of electronic administration of the value added tax, data of the Unified register of tax delivery notes and these customs declarations are opened)";

subitem 75.1.2 in paragraph seven:

"Documentary unscheduled electronic inspection not eligible to travel abroad" to add the first offer after words with the words "according to the statement of the taxpayer";

the second offer to state in the following edition: "The application is submitted in 10 days prior to the expected beginning of conducting electronic check, but not earlier than the official report of the central executive body which provides forming and realizes the state tax and customs policy, about introduction of conducting such check for the corresponding taxpayers: applying simplified taxation system, accounting and the reporting; subjects of managing micro, small; medium business; other taxpayers";

18) in Article 78:

in Item 78.1:

in subitem 78.1.1 to exclude the word "possible";

add subitem 78.1.2  with the words "and in monitoring bodies there is information on the facts of implementation by the taxpayer of activities which led to emergence of the taxation objects, availability of indicators which are subject to declaring, according to requirements of this Code and/or the availability operating (including suspended) licenses for the right of implementation of activities with the excisable products which are subject to licensing according to the legislation";

add with subitems 78.1.17 and 78.1.18 of the following content:

"78.1.17. Are not provided by the taxpayer to stipulated in Item 50.3 articles 50 of this Code term the specifying calculation for error correction, revealed by results of the electronic inspection which is carried out according to the statement of the taxpayer;

78.1.18. Are not given by the taxpayer to stipulated in Item 50.3 articles 50 of this Code term the specifying calculation for error correction, revealed by results of the electronic inspection which is carried out according to the statement of the taxpayer";

add Item 78.2 with the paragraph the second the following content:

"Monitoring bodies are forbidden to carry out the documentary unscheduled inspections provided by subitems 78.1. 1, 78.1.4, 78.1.8, 78.1.11 of Item 78.1 of article 78 of this Code if the question, is subject of such check, were covered during the previous checks of the taxpayer";

Subitem 80.2.5 of Item 80.2 of Article 80 to state 19) in the following edition:

"80.2.5. In case of obtaining in the procedure for information on violation of requirements of the legislation established by the legislation regarding production, accounting, storage and transportations of alcohol, alcoholic beverages and tobacco products and target use of alcohol by taxpayers, and also implementation of the functions determined by the legislation in the field of production and turnover of alcohol, alcoholic beverages and tobacco products, oil products, motor fuel of the alternative, liquefied gas";

20) in Item 82.4 of Article 82:

the paragraph one after words "to the authorized representative on receipt" to add with the words "or goes to the taxpayer the registered mail with the assurance of receipt";

"to the authorized representative on receipt" to add paragraph two after words with the words "or the directions to the taxpayer the registered mail with the assurance of receipt";

21) in Item 87.1 of Article 87:

after paragraph one to add with the new paragraph of the following content:

"Source of independent payment of monetary commitments on the value added tax are the amounts of means which are considered in system of electronic administration of the value added tax, and the sources specified in paragraph one of this Item".

With respect thereto to consider paragraph two the paragraph third;

add with the paragraph the fourth the following content:

"Means on the account of the payer in system of electronic administration of the value added tax cannot be source of repayment of tax debt, except repayment of tax debt on the value added tax,";

22) in Item 94.2 of Article 94:

in subitem 94.2.4 of the word "trade patents" to exclude;

in subitem 94.19.8 of the word of "trade patents" to exclude;

Subitem 98.1.4 of Item 98.1 of Article 98 to state 23) in the following edition:

"98.1.4. Allocation from the taxpayer of other taxpayers, namely transfer of part of property of the taxpayer who will be reorganized, into authorized funds of other taxpayers which are created by owners of corporate laws of the taxpayer who will be reorganized, and as a result of whom there is no liquidation of the taxpayer reorganized";

Paragraphs the first and fifth Item 119.2 of article 119 after words of "the tax withheld from them" to add 24) with the words "and also the amounts of the received payment from physical persons for goods (works, services)";

To add 25) with Article 120-1 of the following content:

"Article 120-1. Violation of terms of registration of the tax delivery notes which are subject to provision to buyers - to taxpayers on value added, and calculations of adjustment to such tax delivery notes in the Unified register of tax delivery notes

120-1.1. Violation by taxpayers on value added of deadlines of registration of tax delivery notes / calculations of adjustment to tax delivery notes in the Unified register of tax delivery notes, stipulated in Clause 201 of this Code, attracts imposing of penalty in the amount of:

10 percent from the tax amount on value added specified in such tax delivery notes / calculations of adjustment - in case of violation of term of registration up to 15 calendar days;

20 percent from the tax amount on value added specified in such tax delivery notes / calculations of adjustment - in case of violation of term of registration from 16 to 30 calendar days;

30 percent from the tax amount on value added specified in such tax delivery notes / calculations of adjustment - in case of violation of term of registration from 31 to 60 calendar days;

40 percent from the tax amount on value added specified in such tax delivery notes / calculations of adjustment - in case of violation of term of registration on 61 and more calendar days.

120-1.2. Absence because of the payer of registration of tax superimposed / calculating adjustment in the Unified register of tax delivery notes within 180 calendar days from the date of their creation attracts imposing of penalty in the amount of 50 percent from the tax amount on value added specified in such tax delivery notes / calculations of adjustment";

To add 26) with Article 123-1 of the following content:

"Article 123-1. Violation of requirements to agreements of long-term insurance of life or to insurance contracts within non-state pension provision, in particular, insurance of additional pension

If the agreement of long-term insurance of life or the insurance contract within non-state pension provision, in particular, the insurance contract of additional pension, within the first five years of its action is terminated for any reasons, except the case provided by the paragraph the fourth this Article, before the termination of the minimum term of its action or before the appropriate insured event, established by this Code and other legislation therefore there is partial insurance payment, payment of the redemption amount or complete cessation of obligations of the insurer for such agreement to such taxpayer or other requirements established by this Code to such agreements and also requirements to agreements of voluntary medical insurance, except the case provided by the paragraph the fourth this Article, then the taxpayer insurer who recognized expenses in financial accounting rise, shall increase financial result to the taxation of the accounting period by the amount of such previously paid payments, fees, awards with charge of penalty fee in the amount of 120 percent of the discount rate of the National Bank of Ukraine operating by the end of the reporting period in which there was agreement cancelation or such agreement ceased to meet the requirements provided by this Code.

The tax liabilities of the insurer in connection with the circumstances specified in paragraph one of this subitem for the period until the end of the accounting period in which there was agreement cancelation of long-term insurance of life or the insurance contract within non-state pension provision, in particular, of the insurance contract of additional pension or such agreement or the agreement of voluntary medical insurance ceased to meet the requirements provided by this Code, are not subject to adjustment.

Penalties for understating of the taxation object on the income tax in the cases determined by this subitem both to the insurer, and are not applied to the taxpayer.

The agreement of long-term insurance of life, the agreement of medical insurance or the insurance contract within non-state pension provision, in particular, can provide the insurance contract of additional pension in which insurer is the employer:

change of the insurer (employer) on the new insurer who can be either the new employer, or insured person, in case of dismissal of insured person;

change of the insurer on the new insurer.

At the same time such change of the insurer (insurer) shall be confirmed by the tripartite agreement between the insurer (insurer), the new insurer (insurer) and insured person";

Article 125 to exclude 27);

Item 126.1 of Article 126 to state 28) in the following edition:

"126.1. If the taxpayer does not pay agreed sum of monetary commitment and/or advance installments on the income tax of the companies, rent payment during the terms determined by this Code, such taxpayer is made responsible in the form of penalty in the following sizes:

in case of delay up to 30 calendar days inclusive following behind the last day of payment due date of the amount of monetary commitment - in the amount of 10 percent of the extinguished amount of tax debt;

in case of delay more than 30 calendar days following behind the last day of payment due date of the amount of monetary commitment - in the amount of 20 percent of the extinguished amount of tax debt";

Chapter 11 to add 29) with Article 128-1 of the following content:

"Article 128-1. Abuse of regulations of export of oil products, motor fuel of the alternative and liquefied gas from the territory of excise warehouse

128-1.1. Export of oil products, motor fuel of the alternative and liquefied gas from the territory of excise warehouse or transportation of such products without mark of the representative of monitoring body in commodity-transport delivery note about approval of leave involve imposing of penalty - 200 percent of cost of the exported or transported products, but at least 15000 hryvnias";

Shall be replaced with words 30) in Item 129.6 of Article 129 of the word "such bank" "or the body performing treasurer servicing of budgetary funds in which accounts of payers in system of electronic administration of the value added tax, such bank / body are opened";

The Section III "The income tax of the companies" to state 31) in the following edition:

"Section III. Income tax of the companies

Article 133. Taxpayers

133.1. Taxpayers - residents are:

133.1.1. subjects of managing - the legal entities performing economic activity both in the territory of Ukraine and beyond its limits, except:

1) budgetary institutions;

2) public associations, political parties, religious, charitable organizations, the pension funds which purpose cannot be obtaining and profit distribution among founders, members of governing bodies, other related persons, and also among employees of such organizations;

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