Specific of the Ukrainian Market
Accounting in Ukraine
Main Taxes in Ukraine
Start-Up Cost
International Payments
Payments in Foreign Currency
Corporate Profit Tax
Value Added Tax
Personal Income Tax
Unified Social Security Contribution
Military Tax
Simplified Taxation System (Single Tax)
Cash Payments
Foreign Currency Transaction
Licensing
Transfer Pricing
Personnel Administration
Options to Finance Ukrainian Subsidiaries
*10.2015
Grant Thornton Vietnam Tax Newsletter - August 2016Alex Baulf
In this Newsletter, Grant Thornton Vietnam would like to highlight the following updates relating to taxation and customs:
1. Guidance from the Ministry of Finance on VAT refund and penalty for late tax payment from 1st July 2016
2. Procedures for payment to State Budget for tax liability and domestic revenue from 1st August 2016 onwards
3. Sponsorship expenditure to Clients shall not be regarded as tax deductible expenses
4. House lease expense of individuals
5. Sponsorship cost of Master’s Degree programs for employees shall be regarded as tax deductible expenses for CIT purpose
6. Approval on "Bilateral agreement and documentation to implement the Foreign Account Tax Compliance Act between Vietnam and the United States"
7. Procedures on cancellation, liquidation and tax refund for defective goods of foreign invested enterprises
8. Procedures on adjustment to the duration of processing contract
9. Trading of goods of Exporting-Processing Enterprises
This newsletter is for reference purposes only. Grant Thornton Vietnam holds no responsibility for mistakes therein, as well as damages caused by the use of information from this newsletter without official advisory opinions from Grant Thornton Vietnam before practice.
Should you need to use information from this newsletter or support from Grant Thornton Vietnam, please contact our professional consultants.
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
Grant Thornton Vietnam Tax Newsletter - August 2016Alex Baulf
In this Newsletter, Grant Thornton Vietnam would like to highlight the following updates relating to taxation and customs:
1. Guidance from the Ministry of Finance on VAT refund and penalty for late tax payment from 1st July 2016
2. Procedures for payment to State Budget for tax liability and domestic revenue from 1st August 2016 onwards
3. Sponsorship expenditure to Clients shall not be regarded as tax deductible expenses
4. House lease expense of individuals
5. Sponsorship cost of Master’s Degree programs for employees shall be regarded as tax deductible expenses for CIT purpose
6. Approval on "Bilateral agreement and documentation to implement the Foreign Account Tax Compliance Act between Vietnam and the United States"
7. Procedures on cancellation, liquidation and tax refund for defective goods of foreign invested enterprises
8. Procedures on adjustment to the duration of processing contract
9. Trading of goods of Exporting-Processing Enterprises
This newsletter is for reference purposes only. Grant Thornton Vietnam holds no responsibility for mistakes therein, as well as damages caused by the use of information from this newsletter without official advisory opinions from Grant Thornton Vietnam before practice.
Should you need to use information from this newsletter or support from Grant Thornton Vietnam, please contact our professional consultants.
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
07. payment of tax before assessment ICAB, KL, Study Manual
This presentation was delivered at the TANGO Policy Dialogue on Private Sector and Development Financing, held at the TANGO Conference Hall, The Gambia, where best practices in regards to the GRA's policy strategies towards private sector development.
Rates of TDS or TCS and regular requirements under income tax ordinance and r...Masum Gazi
Tax Deducted at Source (TDS)/Collected at Source (TCS) in Bangladesh for the FY 2021-22 in comparison with the FY 2020-21 and regular requirements/compliance under Income Tax Ordinance and Rules 1984 in Bangladesh.
TDS Rate for F.Y. 19-20 comparative with F.Y. 18-19 and other regular require...Masum Gazi
TDS Rate for F.Y. 19-20 comparative with F.Y. 18-19 and other regular requirements of Income Tax required to be complied by a company/Branch office/Liaison office/Bank/Non-Banking Financial Institutions/Insurance companies/NGOs etc. (where applicable)
Evaluation of Tax Inspection on Annual Information Income Taxes Corporation T...theijes
This research aims to evaluate the implementation of the tax inspection against the letter of annual information corporation taxpayer which is done by the tax inspection at the tax office Pratama Kendari. This research is a qualitative descriptive. Data were collected from interview and documentation. Data analysis method used is the descriptive with how to describe the implementation of the tax examination. The research result show that the tax inspection conducted by the Tax Office Pratama Kendari is in accordance with the terms of the specified examination, namely the term of the Regulation Minister of Finance Republic Indonesia number 184/PMK,03/2015 about changes to the regulation of the Minister of Finance number 17/PMK.03.2013 about procedure for tax examination. The implementation of tax inspection on the letter of annual information corporation taxpayer on the Tax Office Pratama Kendari provide a good influence in the improving the effectiveness of the taxpayer in his tax obligation
Evaluation of Tax Inspection on Annual Information Income Taxes Corporation T...theijes
This research aims to evaluate the implementation of the tax inspection against the letter of annual information corporation taxpayer which is done by the tax inspection at the tax office Pratama Kendari. This research is a qualitative descriptive. Data were collected from interview and documentation. Data analysis method used is the descriptive with how to describe the implementation of the tax examination. The research result show that the tax inspection conducted by the Tax Office Pratama Kendari is in accordance with the terms of the specified examination, namely the term of the Regulation Minister of Finance Republic Indonesia number 184/PMK,03/2015 about changes to the regulation of the Minister of Finance number 17/PMK.03.2013 about procedure for tax examination. The implementation of tax inspection on the letter of annual information corporation taxpayer on the Tax Office Pratama Kendari provide a good influence in the improving the effectiveness of the taxpayer in his tax obligation.
Taxes in Ukraine 2021 by DLF law firm in UkraineChristine Khariv
General information on tax rates, objects and bases of taxation in Ukraine, as well as peculiarities of taxation of certain categories of taxpayers, in particular, non-residents.
The Portuguese Golden Visa is a special residence permit for investors which enables non-EU individuals to become resident in Portugal and move freely within the Schengen Zone. Please take a look at RPBA's detailed and updated presentation.
The Standard Audit File for Tax is a complex collection of electronic data that entrepreneurs will be obliged to send to the tax authorities. The types of Standard Audit File for Tax (SAF-T) that have been published show not only the structure and expected content of the files, but also their format. The regulations introduced by the Act of 10th September 2015 on amending the Tax Ordinance Act (Dz.U.z 2015r. poz.1649) oblige tax-payers to submit their tax books and accounting documents in the form of Standard Audit File for Tax (SAF-Ts).
This presentation was delivered at the TANGO Policy Dialogue on Private Sector and Development Financing, held at the TANGO Conference Hall, The Gambia, where best practices in regards to the GRA's policy strategies towards private sector development.
Rates of TDS or TCS and regular requirements under income tax ordinance and r...Masum Gazi
Tax Deducted at Source (TDS)/Collected at Source (TCS) in Bangladesh for the FY 2021-22 in comparison with the FY 2020-21 and regular requirements/compliance under Income Tax Ordinance and Rules 1984 in Bangladesh.
TDS Rate for F.Y. 19-20 comparative with F.Y. 18-19 and other regular require...Masum Gazi
TDS Rate for F.Y. 19-20 comparative with F.Y. 18-19 and other regular requirements of Income Tax required to be complied by a company/Branch office/Liaison office/Bank/Non-Banking Financial Institutions/Insurance companies/NGOs etc. (where applicable)
Evaluation of Tax Inspection on Annual Information Income Taxes Corporation T...theijes
This research aims to evaluate the implementation of the tax inspection against the letter of annual information corporation taxpayer which is done by the tax inspection at the tax office Pratama Kendari. This research is a qualitative descriptive. Data were collected from interview and documentation. Data analysis method used is the descriptive with how to describe the implementation of the tax examination. The research result show that the tax inspection conducted by the Tax Office Pratama Kendari is in accordance with the terms of the specified examination, namely the term of the Regulation Minister of Finance Republic Indonesia number 184/PMK,03/2015 about changes to the regulation of the Minister of Finance number 17/PMK.03.2013 about procedure for tax examination. The implementation of tax inspection on the letter of annual information corporation taxpayer on the Tax Office Pratama Kendari provide a good influence in the improving the effectiveness of the taxpayer in his tax obligation
Evaluation of Tax Inspection on Annual Information Income Taxes Corporation T...theijes
This research aims to evaluate the implementation of the tax inspection against the letter of annual information corporation taxpayer which is done by the tax inspection at the tax office Pratama Kendari. This research is a qualitative descriptive. Data were collected from interview and documentation. Data analysis method used is the descriptive with how to describe the implementation of the tax examination. The research result show that the tax inspection conducted by the Tax Office Pratama Kendari is in accordance with the terms of the specified examination, namely the term of the Regulation Minister of Finance Republic Indonesia number 184/PMK,03/2015 about changes to the regulation of the Minister of Finance number 17/PMK.03.2013 about procedure for tax examination. The implementation of tax inspection on the letter of annual information corporation taxpayer on the Tax Office Pratama Kendari provide a good influence in the improving the effectiveness of the taxpayer in his tax obligation.
Taxes in Ukraine 2021 by DLF law firm in UkraineChristine Khariv
General information on tax rates, objects and bases of taxation in Ukraine, as well as peculiarities of taxation of certain categories of taxpayers, in particular, non-residents.
The Portuguese Golden Visa is a special residence permit for investors which enables non-EU individuals to become resident in Portugal and move freely within the Schengen Zone. Please take a look at RPBA's detailed and updated presentation.
The Standard Audit File for Tax is a complex collection of electronic data that entrepreneurs will be obliged to send to the tax authorities. The types of Standard Audit File for Tax (SAF-T) that have been published show not only the structure and expected content of the files, but also their format. The regulations introduced by the Act of 10th September 2015 on amending the Tax Ordinance Act (Dz.U.z 2015r. poz.1649) oblige tax-payers to submit their tax books and accounting documents in the form of Standard Audit File for Tax (SAF-Ts).
Changes in Polish corporate income tax 2020PwC Polska
Changes in Polish corporate income tax 2020. On 23rd of September our experts: Marcin Jaworski and Michał Jagielski summarized biggest corporate income tax challenges and opportunities for 2020.
More info: https://pwc.to/2lkTbOj
SCHNEIDER GROUP Accounting and Taxes in RussiaSCHNEIDER GROUP
SCHNEIDER GROUP: "We do accounting outsourcing and tax consulting in Russia".
We offer accounting and reporting services in Russia. Our employees are highly professional experts with specific accounting knowledge from different industries. Request an individual offer for accounting services now.
Learn more about our accouting outsourcing service in Russia http://schneider-group.com/en/services/accounting-and-reporting/
Tax management paper BBA University of PeshawarEmmaSidd
Q.1. Withholding tax is levied on the withdrawal of cash from the bank accounts by the customer. The current rate of the withholding tax is 0.3% for Tax filers and 0.6% for Non-Tax Filer. What is your opinion; is withholding tax meant to be a major source of earning for the government or helpful for documentation of the economy?
Q.3 Wealth Tax Return form used for the return of net wealth under section 14 of the Wealth Tax Act, 1963 (XV of 1963). Explain the legal importance of Wealth Tax Return proforma?
A comprehensive guide of the tax system of Ukraine for foreign investors. Looking to invest in Ukraine? Here's what you have to know about the tax code of Ukraine.
Fta brazilian taxadvices_for_international_investors Dec 2017Marcelo Couceiro
How doing business in Brazil is a basic summary of tax and corporate aspects international entrepeuners and executives need to understand on their strategic planning phase to enter in Brazil. We recomend as best practice request assistance to experts in order to carry out their business in compliance and adding value to your business.
This brochure deals with general information about tax rates, objects and bases of taxation in Ukraine, as well as peculiarities of taxation of certain categories of taxpayers. Taxation of non-residents is considered in detail. The brochure is written in English.
GAZT VAT guide on Financial Services - EnglishFarhan Osman
This guideline is directed for businesses involved in the Financial Services sector, including commercial banks, insurers, asset financing companies; or any business that provides financial services as part of its overall activities.
Welcome to our guide for Taxation in Vietnam. In this guide, we hope to provide you with an overview of the key aspects of Taxation in Vietnam and answer many of the questions that foreign businesses and entrepreneurs have when making their first venture into the Vietnamese market.
The Portuguese tax regime for non-habitual residents is motivating high net worth individuals, pensioners and high value added professionals to relocate to Portugal, either on a permanent or on a temporary and expatriate basis. The regime is granted to individuals who become resident for tax purposes in Portugal without having been so in the five preceding years. Non-habitual resident individuals may enjoy such status for a ten-year period, after which they will be taxed under the standard regime. This regime may grant an exemption or reduced rate on foreign source income as well as a limited taxation on Portuguese domestic source income deriving from high value added activities. Our presentation does not contemplate changes envisaged by the proposed Budget Law for 2023 (an update will be made when such Law is approved).
Most business activities and investments in Vietnam will be affected by the following taxes:
Corporate income tax;
Various withholding taxes;
Capital assignment profits tax;
Value added tax;
Import duties;
Personal income tax of Vietnamese and expatriate employees;
Social insurance, unemployment insurance and health insurance contributions.
There are various other taxes that may affect certain specific activities, including:
Special sales tax;
Natural resources tax;
Property taxes;
Export duties;
Environment protection tax.
All these taxes are imposed at the national level. There are no local, state or provincial taxes.
HWC LLC News - gradual easing of currency control in ukraineSven Henniger
On September 14th, 2016 the National Bank of Ukraine adopted Resolution № 386 with regard to the liberalizations of certain restrictions existed on the Ukrainian foreign currency market.
HWC LLC - gradual easing of currency control in ukraineSven Henniger
On May 5, 2016 the National Bank of Ukraine adopted Resolution № 308 "On amendments to some regulations of the NBU" with regard to the liberalizations of certain restrictions existed on the Ukrainian foreign currency market.
Einkommensteuer und Sozialversicherungsbeiträge, Lohnbuchhaltung in der Ukrai...Sven Henniger
Bis Ende 2015 bestanden zwei Einkommensteuersätze in Höhe von 15% sowie 20%. Diese Progression wurde mit der neuen Steuerreform aufgehoben. Mit dem 1. Januar 2016 gilt ein einheitlicher Einkommensteuersatz von 18%. Die Militärsonderausgabe in Höhe von 1,5% bleibt weiterhin bestehen.
Eine deutliche Vereinfachung und Vereinheitlichung gab es im Bereich der Sozialversicherung. Der bisher gültige Arbeitnehmerbeitrag in Höhe von 3,6% wurde ersatzlos gestrichen. Somit findet in diesem Bereich eine deutliche Entlastung der Arbeitnehmer statt, die in den niedrigeren Gehaltsbereichen durch die gegenläufige Steuererhöhung von 15% auf 18% nicht so sehr positiv ins Gewicht fällt. Die Sozialversicherungsbeiträge für zivilrechtliche Verträge (bisher 2,6%) und im Krankheitsfall (bisher 2%) entfallen ebenfalls.
Der Arbeitgeberanteil wurde von bisher je nach Risikogruppe des Unternehmens zwischen 36,76% und 49,7% auf für alle Unternehmen einheitliche 22% gesenkt. Diese 22% gelten auch für zivilrechtliche Verträge und für die Gehaltsberechnung im Krankheitsfall (bisher 34,7% bzw. 33,2%). Dieser Schritt vereinfacht die Arbeit der Buchhalter bei den Gehaltsberechnungen erheblich. Darüber hinaus führt die Reduktion auf 22% zu einer deutlichen Entlastung bei den Arbeitgebern, der in einzelnen Fällen bis zu 23% bzw. rund 6.500 Hrywnja betragen kann. Die Beitragsbemessungsgrenze für die Sozialversicherungsbeiträge wurde von 17 (Ende 2015: 23.426 Hrywnja) auf 25 (Januar 2016: 34.450 Hrywnja, Mai: 36.250 Hrywnja, Dezember: 38.750 Hrywnja) Minimalgehälter angehoben.
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Earth moving equipment refers to heavy-duty machines used in construction, mining, agriculture, and other industries to move large amounts of earth, soil, and other materials. These machines include excavators, bulldozers, loaders, and backhoes, which are essential for tasks such as digging, grading, and leveling land.
Earthmovers is a leading brand in the industry, known for providing reliable and high-performance earth moving equipment. Their machines are designed to handle the toughest jobs with efficiency and precision, ensuring optimal productivity on any project.
Best Catering Event Planner Miso-Hungry.pptxMiso Hungry
Miso-Hungry, led by Executive Chef Emilio Molina, is Islamorada's premier catering event planner. We specialize in sustainable, farm-fresh cuisine, using local ingredients to create unforgettable dishes. As a FollowTheFoodHMI branded company, we bring our culinary expertise across the U.S., connecting communities through exceptional food and personalized event planning. Let us showcase our family's passion and make your event extraordinary.
Nature’s Paradise Glamorous And Sustainable Designs For Your Outdoor Living S...Landscape Express
Create a harmonious blend of luxury and sustainability in your outdoor living space with eco-friendly kitchens, enchanting water features, and lush plant landscaping. Embrace energy-efficient appliances, solar lighting, rainwater harvesting, and native plants to enhance beauty while reducing environmental impact. Transform your space into a glamorous, eco-conscious retreat for relaxation and social gatherings.
In the competitive realm of online business, visibility is key, and search engine optimization (SEO) serves as the cornerstone of digital prominence. As the demand for effective SEO solutions continues to soar, finding the best SEO company in Perth becomes imperative. Enter Simba Squad – a dynamic force dedicated to propelling your business to new heights of success.
Are Gutters Necessary? Explore the details now!AmeliaLauren3
Gutters are typically installed at a slight downward slope to allow water to flow freely towards downspouts or drains – the downspout being the vertical pipe attached to the gutters. The water is subsequently transported by the downspout to either the ground or an underground drainage system. Maintaining a gutter system that is free of blockages and functional requires regular maintenance.
But, many wonder in what situations gutters are required and not required. In this ppt we will discuss in detail the matter, ‘Are Gutters Necessary?’
Elevate Your Brand with Digital Marketing for Fashion IndustryMatebiz Pvt. Ltd
Matebiz Pvt. Ltd. specializes in providing cutting-edge digital marketing for Fashion Industry. Our comprehensive strategies ensure that your brand stands out in the competitive fashion landscape. From targeted social media campaigns to search engine optimization tailored for fashion keywords, we cover it all. With a deep understanding of industry trends and consumer behavior, we craft compelling content and engaging visuals to enhance your online presence. Trust Matebiz Pvt. Ltd. to elevate your fashion brand through strategic digital marketing initiatives.
Colors of Wall Paint and Their Mentally Properties.pptxBrendon Jonathan
Discover how different wall paint colors can influence your mood and mental well-being. Learn the psychological effects of colors and find the perfect hue for every room in your home.
Learn about Inspect Edge, the leading platform for efficient inspections, featuring the advanced NSPIRE Inspection Application for seamless property assessments. Discover how the NSPIRE Inspection Application by Inspect Edge revolutionizes property inspections with advanced features and seamless integration.
Best steel industrial company LLC in UAEalafnanmetals
AL Afnan Steel Industrial Company LLC is a distinguished steel manufacturer and supplier, celebrated for its high-quality products and outstanding customer service. With a diverse portfolio that includes structural steel, and custom fabrications, AL Afnan meets a wide array of industrial demands. We are dedicated to using advanced technologies and sustainable methods to ensure excellence and reliability in every product, serving both local and international markets with efficiency.
Office Business Furnishings | Office EquipmentOFWD
OFWD is Edmonton’s Newest and most cost-effective source for Office Furnishings. Conveniently located on 170 street and 114 Avenue in Edmonton’s West End. We take pride in servicing a client base of over 500 corporations throughout the Edmonton and Alberta area. OFWD is in the business of satisfying the home or corporate office environment needs of our clients, from individual pieces of furniture for the home user to the implementation of complete turn-key projects on much larger scales. We supply only quality products from reputable manufacturers. It is our intention to continue to earn the trust of our clients by dealing with honesty and integrity and by providing service and after sales follow-up second to none.
A Bulgarian work permit is valid for up to one year, after which it can be renewed as long as the conditions of employment have not changed. After obtaining a work permit, the employee will need to apply for a Type D visa at the Bulgarian embassy or consulate in their country. Urgent requirement for Bulgaria 🇧🇬🇧🇬work D Category National Permit Visa ( Indian /Nepali Nationality only) Visa Validity - 3 to 6 months on renewables basis. Job category - General worker/ Helper Salary - 800 Euro @ 8 hrs.+ Over time extra Age- 20- 40 years Total processing time -4-5 Months
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Get your dream bridal look with top North Indian makeup artist - Pallavi KadalePallavi Makeup Artist
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The Jamstack Revolution: Building Dynamic Websites with Static Site Generator...Softradix Technologies
In this infographic, the Jamstack architecture emphasizes pre-rendered content and decoupling the frontend from the backend. It leverages static site generators (SSGs) to create fast-loading HTML files and APIs for dynamic functionality. Benefits include improved performance, enhanced security, scalability, and ease of deployment. Real-world examples include Netlify, Gatsby, and Contentful. https://softradix.com/web-development/
2. 2Brochure_OS_Accounting&Tax.pptx
CONTENT
1. SPECIFICS OF THE UKRAINIAN MARKET 3
2. ACCOUNTING IN UKRAINE 4
3. MAIN TAXES IN UKRAINE 5
4. START-UP COST 6
5. INTERNATIONAL PAYMENTS 6
6. PAYMENTS IN FOREIGN CURRENCY 7
7. CORPORATE PROFIT TAX (CPT) 7
8. VALUE ADDED TAX (VAT) 9
9. PERSONAL INCOME TAX (PIT) 11
10. UNIFIED SOCIAL SECURITY CONTRIBUTION (USSC) 12
11. MILITARY TAX 13
12. SIMPLIFIED TAXATION SYSTEM (SINGLE TAX) 14
13. CASH PAYMENTS 16
14. FOREIGN CURRENCY TRANSACTIONS 17
15. LICENSING 18
16. TRANSFER PRICING 19
17. PERSONNEL ADMINISTRATION 20
18. OPTIONS TO FINANCE UKRAINIAN SUBSIDIARIES 22
3. 3Brochure_OS_Accounting&Tax.pptx
1. SPECIFICS OF THE UKRAINIAN MARKET
Making business in Ukraine is embedded into a quite unique market situation. On
the one hand the country is associating itself towards the European Union by
initializing reforms and rejuvenating its authorities. This atmosphere of change
promises massive chances to capture a remunerative market. On the other hand
the country conducts its heritage of the former Soviet Union including laws and
regulations, specific local accounting standards, a variety of different authorities
directly impacting the business world by a high level of bureaucracy and corruption.
Excellent personal relationships and the creation of trust are essential to establish a
successful joint venture or market presence.
HWC is combining local expertise with Western European business manner and acts
as the interface between you and this complex environment. Adapting your
business to the Ukrainian market, consulting on business relevant decisions and
supporting with business services is our core competence.
Making your business work – is what we do!
4. 4Brochure_OS_Accounting&Tax.pptx
With effect from January 1, 2000, Ukraine implemented the National Accounting
Standards (NAS), which are primarily based on the International Financial
Reporting Standards (IFRS);
Since January 1, 2012, all taxpayers in Ukraine are allowed to use IFRS for
financial reporting;
Regardless of NAS or IFRS being in use, a taxpayer has to complete a significant
number of different accounting and reporting forms required by the local law;
Financial statements (incl. balance sheet, income statement, cash flow
statement, statement of changes in equity and notes to the financial
statements) are to be prepared in local currency and must be filed for a calendar
year and relevant interim reporting periods (quarters);
Taxpayers are not able to use their own “charts of accounts” and have to adapt
them in line with the essential “Chart of Accounts”, directly required by the
Ukrainian law. As a result, the number of accounting entries to be made is about
twice as much as in comparison with the requirements to the foreign entities in
comparable situations;
Certain obligatory principles have to be applied by any local taxpayer when
preparing its “accounting policy”. The Ukrainian government adopted the list of
items are to be regulated by the “accounting policy”;
“Customs declaration” (for import/export of goods) and “Act of acceptance” (for
other cases) are essential for tax and accounting. “Invoice” is rather formal than
essential document. “Credit note” is not required at all;
Basic accounting principles are:
Accounting is based on historical cost which is subject to inflation
adjustments;
Accounting directives are aimed at uniformity and continuity across
businesses;
Design of the accounting forms is regulated by NAS;
Form of a transaction prevails over its substance for the accounting;
In particular NAS implement and develop accounting rules.
2. ACCOUNTING IN UKRAINE
5. 5Brochure_OS_Accounting&Tax.pptx
Corporate Profit Tax (CPT)
Basic Rate - 18%;
Cap – n/a;
Reporting period – calendar year.
Value Added Tax (VAT)
Cap - n/a;
Basic Rates - 0%; 7% and 20%;
Reporting period - calendar month.
Personal Income Tax (PIT)
Cap - up to 10 times the minimum salary per month
(UAH 12,180 for Jan–Aug 2015 and UAH 13,780 for Sept-Dec 2015);
Basic Rates - 15% up to 10 times the minimum salary; 20% applies to
the amounts paid on top of 10 times the minimum salary;
Reporting period - calendar quarter.
Unified Social Security Contribution (USSC);
Cap – up to 17 sustenance minimums per month
(UAH 20,706 for Jan–Aug 2015 and UAH 23,426 for Sept- Dec 2015;
Basic Rates: - employee - 3,6% (payroll), 2,4% (civil law agreements);
- employer - 36,76% - 49,7% depending on the level of industrial risk;
Reporting period - calendar month.
Military Tax
Cap – Gross salary (including any benefits);
Basic Rates: employee - 1,5%;
Reporting period - calendar quarter.
Excise Taxes
Excise tax applies to the exhaustive list of the goods imported to or
produced in Ukraine, including: ethyl alcohol, alcoholic beverages,
tobacco and tobacco products, cars, car bodies, motorbikes, electricity,
liquefied gas, petrol, diesel fuel, and certain other oil products used for
wholesale supply of electric power;
The rates of the excise tax can be “ad valorem” (a percentage of the
value of the goods), “specific” (in monetary units per unit of goods), or
“combined”. The rates of the excise tax are subject to permanent
changes and must be checked for each particular case separately.
3. MAIN TAXES IN UKRAINE
6. 6Brochure_OS_Accounting&Tax.pptx
During the start-up any founder/shareholder of a NewCo, as a rule, have to
incur certain expenses (e.g. registration fees, notary fees, payments to lawyers,
etc.) before completing of a NewCo’s registration and opening its bank
accounts;
The National Accounting Standards, which are the essential ground to form the
taxable base for the CPT in 2015, directly presume possibility to deduct for the
CPT purpose the expenses required by the Ukrainian law for the registration
(e.g. the registration fees, duties, etc.);
Deductibility for the CPT purposes of the “additional” expenses paid before
state registration and/or not from a NewCo’s bank accounts (e.g. payments for
the office equipment, furniture, stationary, etc.) is questionable, and, as a rule,
unaccepted by the local fiscal authorities;
In order to prevent non-deductable expenses, a founder/shareholder should
pay the “additional” expenses, after the registration completed and from the
registered NewCo’s bank account.
5. INTERNATIONAL PAYMENTS
Ukraine has a moderately well-developed network of effective double taxation
treaties. The rules incorporated in DTTs ratified by Ukraine prevail over the
same ones contained in the Ukrainian domestic tax legislation.
To be eligible for the reduced tax rates prescribed by the DTT, inter alia, the
beneficial ownership test needs to be passed. Under Ukrainian law the
beneficial owner of the income is a person who has the right to receive the
relevant Ukrainian-source income, and is not an agent, nominee or
intermediary (conduit). In addition, the certificate of residence of a foreign
recipient in the relevant jurisdiction is a must.
4. START-UP COST
7. 7Brochure_OS_Accounting&Tax.pptx
Settlements between residents and nonresidents of Ukraine in trade and service
transactions are allowed in both hard and local (UAH) currencies.
Settlements under export/import of goods, works or services contracts must be
made within the period not exceeding 90 calendar days. Otherwise a penalty
(0,3% of the overdue debt) will apply for each day of the delay. The 90-day
period may be extended only based on an individual permission granted by the
relevant Ukrainian state authorities;
Offset of the debt between a resident and a non-resident is not allowed in 2015.
This is due to the fact that an offset results in violation of the 90-day rule (i.e. no
funds actually transferred to the bank account of a Ukrainian exporter);
75% of foreign currency proceeds received by residents under cross-border
agreements must be sold on the Ukrainian inter-bank foreign exchange market.
The foreign currency must be sold not later than the next business day after the
relevant proceeds have been credited to the bank account;
If Ukrainian entity intends to pay to its foreign counterpart for services, or use of
the intellectual property rights in excess of EUR 25,000 (or its equivalent in
another foreign currency), such Ukrainian entity shall obtain a price valuation
statement from the State Information and Analytical Center for Monitoring of
External Commodity Markets. Otherwise, the bank will disallow the transfer;
6. PAYMENTS IN FOREIGN CURRENCY
7. CORPORATE PROFIT TAX (CPT)
Since 2015, in particular the annual financial result (profit or loss from ordinary
activities before taxation) declared by a taxpayer in its financial reporting
(prepared in line with NAS or IFRS) and adjusted by several gains/losses directly
presumed by the Tax Code, is to be taken, as the basis for the CPT calculation;
A Taxpayer, whose annual income (net VAT) from any activities does not exceed
UAH 20 mln. may not apply, at its own discretion, any adjustments, except the
losses carried forward from the previous periods;
If it is the case, then the taxpayer will not be able to apply the adjustments
during all subsequent reporting periods (years), until its annual income (net
VAT) exceeds the threshold of UAH 20 mln.;
8. 8Brochure_OS_Accounting&Tax.pptx
A Taxpayer, whose annual income (net VAT) from any activities exceed UAH 20
mln., shall apply the adjustments required/granted by the Tax Code. The
adjustments are mainly relevant to the transfer pricing rules, accruals of
reserves, depreciation of noncurrent assets, etc.;
CPT return shall be electronically filed with the local fiscal (tax) authorities by the
1st June of the year following the reporting one; CPT liabilities shall be paid
during 10 (ten) days following the deadline presumed for filing of the CPT return;
Certain business may qualify for a different tax regime, including agricultural,
insurance and certain other businesses specified in the Tax Code.
Advanced CPT payments
Advanced CPT payments are mandatory for the taxpayers, whose annual income
(net VAT) from any activities exceeds UAH 20 mln.;
Advanced CPT payments are due monthly (without filing any CPT declaration) in
the amount of at least 1/12 of the CPT liabilities accrued for the previous
reporting (tax) year, less the CPT liabilities paid out with regard to the dividends;
Accruals and payments of the CPT on dividends are subject to separate
regulations. The CPT and Withholding Tax on dividends are separate taxes;
The twelve-month period for advance payments is determined from June of the
current reporting (tax) year to May of the next reporting (tax) year;
Being registered during a year a taxpayer shall file annual CPT return for such
year and shall pay CPT (if any) for the period from the date of registration till the
end of the year;
Tax payers, whose annual income (net VAT) does not exceed UAH 20 mln. are not
liable for the advanced CPT payments.
9. 9Brochure_OS_Accounting&Tax.pptx
As of 1 January 2015, there are three VAT rates: 20%, 7%, and 0%;
The rate of 20% applies to almost all transactions subject to VAT except specific
transactions subject to 7% (medicines, medical goods and equipment incl. for
trial) and 0% (export of goods, international transport and tolling services);
Provision of services to a non-resident is not considered to be zero-rated. Such
services are subject to 20% VAT or considered to be outside the scope of VAT
(with no right to claim input VAT), depending on “the place of supply”, as
determined by the Tax Code;
VAT registration is obligatory for a taxpayer, whose volume of VAT-able
operations exceeds UAH 1 mln. during the preceding 12 months; Voluntary
registration allowed as well, even for those taxpayers, which have no VAT-able
operations (e.g. VAT registration during the initial registration as a taxpayer);
Even the registered VAT payer is not allowed to credit input VAT in excess of paid
output VAT;
Registration of a non-resident company as a VAT payer is not possible. Not being
registered as VAT payer, a non-resident cannot claim a VAT refund of input VAT
sourced from Ukraine;
The “first event” rule applies to input and output VAT. Under the “first event”
rule, the liability to pay output VAT as well as the right to credit input VAT arises
either at the moment of receiving services/ goods (signing of the acts of
acceptance) or when paying money for the services/ goods, depending on which
event happens first;
VAT declaration is to be filed in electronic form with the local tax authorities
monthly, by the 20th day of the month following the reporting one. Relevant tax
liabilities (if any) are to be paid during 10 days following the reporting deadline.
Taxpayer, who applies paying Simple Tax at the rate 4 % may perform its activities
without registration as VAT payer (pls. see below).
8. VALUE ADDED TAX
10. 10Brochure_OS_Accounting&Tax.pptx
Electronic VAT administration
In Ukraine the Electronic VAT administration came into force in January 2015;
A separate VAT bank account is required for the electronic VAT administration;
All VAT invoices and corrections shall be registered in the “Register of the Tax
Invoices” (the - Register) during 15 calendar days following the date of issuing.
Registration delay results in fines up to 50% of the respective VAT. All VAT
invoices shall be issued in electronic form. No paper copies are required for the
accounting;
VAT liabilities shall be paid from the separate VAT account. If the volume of the
funds on the VAT account is lower than the VAT liabilities to be paid, a tax payer
has to transfer a sufficient amount from its operational bank account to the VAT
bank account to compensate the lack of the funds;
For the purposes of input VAT adjustments (pro-rata or self-assessed VAT
liabilities) a consolidated VAT invoice should be issued by the end of the
respective month;
A registered VAT invoice can be included into input VAT within 365 days after
issuing.
VAT recovery and refunds
Generally, VAT incurred by a registered entity on the purchase and/ or
importation of goods and services used for the purpose of its own business
(except for VAT incurred in relation to exempt supply) may be recovered by way
of a credit against output VAT. If the VAT credit exceeds VAT output, a VAT refund
is available in the form of a cash payment;
An automatic VAT refund procedure is available for the eligible taxpayers. In
practice, obtaining a VAT refund by other taxpayers is difficult.
11. 11Brochure_OS_Accounting&Tax.pptx
Individuals - tax residents are subject to PIT in Ukraine, regardless of whether
they are citizens of Ukraine or not. Tax residence, as a rule, is regulated by the
Double Tax Treaties concluded between Ukraine and a country of residence of
the individual non-resident. Individuals - tax residents are to be taxed on their
worldwide income;
There are two standard rates of PIT in Ukraine, i.e. 15% and 20%;
Rate 15% applies to the salaries and payments under the civil law agreements in
the amount up to 10 times the minimum salary (UAH 12,180 for January –
November 2015 and UAH 13,780 for December 2015); Rate 20% applies to the
amounts paid on top of the 10 times the minimum salary;
In general, PIT shall be withheld at the payment sources and shall be paid out by
the employer prior to or simultaneously with the relevant taxable payments (e.g.
salary, payments under the civil law agreements, etc);
In general, the employees (incl. non-residents working in Ukraine), who have the
wage as one source of income, are not liable to file PIT declaration; Reports on
personal income tax (Form – “1DF”) of these employees shall be filed by an
employer on a quarterly basis, and must include information regarding each of
the employees as to the income received and PIT withheld;
Income from foreign sources or income from Ukrainian sources, which was not
taxed at the sources, is subject to taxation in Ukraine. The tax liabilities are to be
calculated based on the data declared in the annual PIT return;
Annual PIT return is to be filed with the local tax authorities by the 1st May of the
calendar year following the reporting one. The self-assessed tax is to be paid in
local currency (UAH) by the 1st August of the calendar year following the
reporting one;
International agreements signed by Ukraine (i.e. Double Taxation Treaties)
prevail over domestic legislation. Therefore, the lower tax rates or even tax
exemption can be applied based on the international agreements.
9. PERSONAL INCOME TAX (PIT)
12. 12Brochure_OS_Accounting&Tax.pptx
Remunerations, allowances and other similar payments to employees (regardless
of being locals or foreigners) through payroll are subject to the Unified Social
Security Contribution (the “USSC”). The USSC is to be paid by both employer and
employee.
Foreigners, who work in the representative offices of foreign companies, are not
liable for the USSC;
The USSC covers the payments to the:
Pension Fund;
Social Security Fund;
Unemployment Benefit Fund;
Accident Insurance Fund
The taxable base for the USSC is capped for both employer and employee by 17
sustenance minimums (i.e. UAH 20,706 for January – August 2015 and UAH
23,426 for September - December 2015).
The employee’s contribution constitutes 3.6% of gross income (subject to the cap
(see above)). The USSC due by the employee is withheld and payable by the
employer at the time when the relevant income (wage) paid;
The employer’s contribution ranges from 36.76% - 49.7% of the gross income,
which in its turn, is subject to the cap (see above)), depending on the level of the
classification of industrial risk applied by the employer. The USSC due by the
employer is payable at the time when the relevant income is paid to the
employees or other recipients;
The monthly employer’s USSC per individual cannot be less than the contribution
calculated based on the minimum wage (i.e. from UAH 1,218 for January –
August 2015 and UAH 1,378 for September - December 2015). This does not
apply to remuneration under the civil law agreements.
The USSC report is to be electronically filed with the fiscal authorities by the 20th
day of the month, following the reporting one. If an employer applies any social
benefits, they should be reported quarterly by the 20th calendar day of the
month following relevant quarter.
10. UNIFIED SOCIAL SECURITY CONTRIBUTION
13. 13Brochure_OS_Accounting&Tax.pptx
Penalties for the USSC violations include:
failure to pay/untimely pay of USSC – 20% of the underpaid/overdue amounts;
additional accruals of USSC by fiscal authorities result in penalties amounting to
10% of the accrued amount for each omitted reporting period, however, not
more than 50% of the accruals;
failure to file, untimely filing or filing of the USSC report in a form other than the
required one, are result in the fine amounting to UAH 170 (10 nontaxable
minimum) for the first violation, and UAH 1,020 (60 nontaxable minimum) for the
repeated violation during the same year.
11. MILITARY TAX
The Military Tax effective from 3 August 2014 and would apply until the reform
of the Ukrainian Military Forces is completed. The completion should be
confirmed by respective decision of the Parliament of Ukraine;
Starting from 1 January 2015 the tax base for the military tax is the same as for
PIT. This means that income, which was not subject to Military Tax in 2014 (i.e.
passive income, foreign source income, lease payments, etc.), is now taxable;
Tax at the rate 1,5% is to be paid by employees only;
Administration of the Military tax is similar to the PIT administration.
14. 14Brochure_OS_Accounting&Tax.pptx
12. SIMPLIFIED TAXATION SYSTEM (SINGLE TAX)
Upon the entry into force of the Law of Ukraine No.71 on January 1, 2015 the
number of single tax payers’ groups has been reduced from 6 to 4;
Simplified Taxation System grants payment of CPT at the rates 2% or 4%,
possibility to avoid registration as VAT payer and is regulated by the Tax Code
of Ukraine;
In general, the conditions to apply the System and relevant advantages and
disadvantages are briefly provided in the table below.
Individuals (private entrepreneurs) and Legal entities
Group 1 Group 2 Group 3 Group 4
Taxpayers Private
entrepreneurs (PEs)
PEs and legal
entities
PEs and legal
entities
Agricultural producers
(legal entities and
individual farmers)
Max. income per
year
UAH 300k UAH 1.5 mln UAH 20 mln The main criterion-
income from the sale
of their own
agricultural products
constitutes not less
than 75% of the total
gross revenue of the
previous tax
(reporting) year
Max. number
employees
Nil 10 employees No limit No limit
Major activities Trading in markets
Specified consumer
services
Services
(including
consumer) to
payers of Unified
tax and/or
individuals
Manufacturing/
Production
Sale of goods
Restaurants
Any activity
(unless
specifically
excluded)
Sale of agricultural
products produced
and processed (other
than specifically
excluded)
Tax rates up to 10% of min
salary per month
up to 20% of min
salary per month
2% of turnover
(if VAT
registration
made)
4% of turnover,
if no VAT
registration
The amount of tax due
depends on the size of
the agricultural land
plot owned or rented
by the agricultural
producers. The tax
rates vary from 0.45%
to 3%, apply to the
normative monetary
value of one hectare
of agricultural land,
and depend on the
type of such land.
15. 15Brochure_OS_Accounting&Tax.pptx
Taxpayers from the 3rd Group cannot be registered as VAT payer from the very
beginning. Firstly registration as 4% tax payer is required. Nevertheless, re-
registration is not complicated and can be performed from the beginning of
any calendar quarter, provided relevant statement submitted to the tax
authorities at least 15 days prior to the beginning of the relevant calendar
quarter;
Taxpayers that adopt the Simplified Taxation System must maintain their
accounting records in line with the specific procedures adopted for such tax
payers and presumed by the Tax Code.
16. 16Brochure_OS_Accounting&Tax.pptx
Payments in cash (salary, compensations, etc.) require special supporting
documentation (cash receipts, cash disbursement vouchers, etc.) and must be
recorded in a standardized cashbook. To compensate for any expenses incurred
by an employee for a company’s business, a so-called “advance report”, using a
standardized form, must be completed;
To keep cash in office (petty cash), a company has to set a “cash limit”. For this
purpose, a company has to use a specific algorithm required by the National
Bank of Ukraine. The “cash limit”, in general, depends on the average number of
cash transactions per month and on the nature of the company’s business. In
that case of a start-up business, the “cash limit” is set based on the presumed
number of cash transactions and may be revised after three months based on
actual number of the cash transactions;
Cash exceeding the “cash limit” that is withdrawn by a company from the bank
for specific payments (e.g. advance for business trips) has to be returned to the
bank if not paid to a recipient within 3 days;
Exceeding the cash limit, if identified by the tax authorities in a company’s office,
results in significant fines for the company (up to quintuple amount of the
excess);
The limits for cash payments in Ukraine are set at:
UAH 10,000 - cash payments between companies during one working day;
UAH 150,000 – cash payments between individuals and companies during
one working day for goods (labor, services);
Payments between individuals amounting to UAH 150,000 under the sale and
purchase agreements are to be endorsed by a notary;
The National Bank of Ukraine (NBU) plans to narrow the use of cash by reducing
the upper limit of cash payments between individuals by three times, to UAH
50,000.
13. CASH PAYMENTS
17. 17Brochure_OS_Accounting&Tax.pptx
Historically Ukraine had strict and administratively burdensome currency control
rules. Nevertheless, during 2014/2015 the excessive state regulation in this area
was significantly increased. This is mostly to avoid potential default of Ukraine.
The broad ranges of administrative instruments to govern the Ukrainian currency
market were adopted by the Ukrainian government.
As a result the following currency control restrictions continue to apply in August
2015:
75% mandatory sale of all foreign currency proceeds;
Limitations on purchase of hard currency by individuals (UAH 3,000 per day);
A ban on the following transactions in foreign currency:
Payments under import and export transactions exceeding 90 calendar days;
Early repayment of loans, as well as the conclusion of supplements on the
reduction of payment terms;
Offset of mutual claims under foreign trade agreements;
Remittance of funds to foreign investors due to:
• proceeds from the sale of corporate rights (except shares);
• the sale of Ukrainian securities outside the stock exchange (except state
bonds);
• payment of dividends (except from securities traded on the stock
exchange).
The threshold for service payments to non-residents, which require price
expertise of the Foreign Markets Monitoring Centre constitutes EUR 25,000 per
year;
Ukrainian residents (except for individuals) cannot purchase foreign currency if
they have more than USD 10,000 on their current and deposit accounts in all
banks;
A ban on the remittance of funds to foreign investors due to:
Payment of dividends under securities traded on the stock exchange;
Decrease of the charter capital or exit of foreign investors from legal entities;
A ban on the transfer of UAH from investment accounts for the purchase of state
bonds.
14. FOREIGN CURRENCY TRANSACTIONS
18. 18Brochure_OS_Accounting&Tax.pptx
In Ukraine, certain types of business activities may be carried out only upon
obtaining a license from the relevant state authorities;
Since July 2015 about 30 types of activities are subject to licensing in Ukraine.
The main of them are: banking and financial services; professional stock market
activity; certain types of constructions; certain types of cross-border business
activity; business activity in the sphere of intellectual property; manufacturing
and sale of ethanol, cognac and fruit spirits, alcohol beverages and tobacco;
production and sale of ethanol, cognac and fruit spirits, alcohol beverages and
tobacco; production and sale of pharmaceuticals; business activities in
telecommunications, TV and radio broadcasting; cargo, passenger and baggage
transportation; medical and veterinarian practice; transportation of oil and
petroleum products via long-distance pipelines; transportation of natural, oil-
well gas and methane via pipelines and their distribution; sale of biomass liquid
fuel and biogas, etc.;
License can be obtained both in hard copy and in electronic form. The
documents for license can be submitted personally, by post or electronically;
Licenses are issued for an indefinite period of validity unless a limited term is
prescribed for a particular type of license. Generally, the term of the license
should not be less than 5 years. For a license a one-time fee shall be paid. Re-
issuing of a license shall be done free of charge.
15. LICENSING
19. 19Brochure_OS_Accounting&Tax.pptx
The new transfer pricing rules for the Ukrainian companies came into effect on
September 1, 2013 and are subject to permanent changes.
Transfer pricing rules involve price control over the following transactions:
with related non-resident companies;
with unrelated non-resident agents;
with companies from the “low-tax” jurisdictions; and
with companies from the jurisdictions, which have no agreements with
Ukraine “On the information exchange”.
Since July 2015, the threshold for controlled transactions constitutes UAH 5 mln.
with one counterparty (provided the total annual revenue of the taxpayer
exceeds UAH 50 mln.);
The "arm's-length” principle is the basic rule for the transfer pricing regulations,
and presumes that the prices in the controlling transactions must comply with
the prices in the comparable uncontrolled transactions between independent
counterparties (“fair market price”);
In general, a taxpayer must prove compliance of its prices in the controlled
transactions with the fair market prices by filing the annual report on the
controlled transactions, as well as by provision of supporting documentation
upon the request from fiscal authorities. The proving must performed based on
the method(s), described in the amended Tax Code.
Supporting documentation above include: factors affecting the prices;
information about the functions, assets and economic risks of the
counterparties to the controlled transactions; economic analysis (including
analysis of the range of the fair market prices or comparable profitability);
reason to use the method(s) chosen to confirm that the price in the controlled
transactions equals to the fair market price, etc.
In case of non-compliance of the controlled prices with the fair market prices,
the adjustment of the controlled prices and corresponding recalculation of tax
liabilities are required.
Penalties for non-provision (late provision) of the report on controlled
transactions constitute 300 minimum wages, which is UAH 1,218 for January –
November 2015 and UAH 1,378 for December 2015. Non-inclusion of controlled
transactions into the TP report results in penalties of 1% of the amount of the
undeclared controlled transactions but should not exceed 300 times the
minimum wage.
16. TRANSFER PRICING
20. 20Brochure_OS_Accounting&Tax.pptx
The main legislative act regulating employment relations in Ukraine is the Labour
Code of Ukraine (“Labour Code”). The Labour Code is inherited from the Soviet
era and has not undergone any major revisions since its adoption in 1971;
Employment can be formalized through a labour agreement or an employment
contract in written form. Employment can also be formalized with a standard
“order”, signed by a company’s director;
An employer has the right to establish a probationary period (up to 6 months) for
a newly-hired employee. For unskilled and low skilled employees, the duration of
the probationary period may not exceed one month;
Payroll and labor essentials
Salaries should be paid at least twice a month. The gap between installments
should not exceed 16 days, and the salary must be paid within 7 calendar days
after the end of the period to which it is attributable;
In general, working time is limited to 40 hours per week with a five-day working
week. In certain cases an employer may introduce a six-day working week.
Overtime may be introduced in exceptional cases and must be paid at double
rates;
Annual vacation is 24 calendar days. The weekends during a vacation are
counted as vacation days;
Additional social vacations are granted to couple categories, including but not
limited to:
women having two or more children under the age of 15;
women having a disabled or an adopted child;
single parents; etc.
Vacation allowances are calculated based on the average salary during the
previous twelve months. Each employee must be granted vacation of 24 calendar
days. The main part of the annual vacation should be not less than 14 days.
Unused vacation days can be carried forward; however, with certain limitations;
17. PERSONNEL ADMINISTRATION
21. 21Brochure_OS_Accounting&Tax.pptx
Being on sick leave an employee has to be paid in the amount of: 60-100% of
average salary of such employee depending on the length of service: 5 years or
less - 60%; 5-8 years - 80%; more than 8 years - 100%).
Sick leave allowances are calculated based on the average salary during the
previous six months;
Protection from termination during the first four months of uninterrupted sick
leave, is granted by the labour law;
The system of sick leave in Ukraine requires an employee to submit a medical
certificate only after his/ her recovery, i.e., on the first working day after an
employee’s recovery;
Sick leave compensation is covered by the Ukrainian State Social Security Fund,
except for the first 5 (five) days of each period of an employee’s sickness, which
paid for by the employer. Paid maternity leave is up to 70 calendar days before
and up to 56 calendar days after the childbirth.
Disabled individuals
In accordance with Ukrainian legislation companies with more than eight
employees are required to employ a minimum number of disabled people – 4%
of their total headcount (for the companies with 8 to 25 employees this quota is
one disabled person).
If an employer does not meet the quota, it is required to make a one-time
payment per year to the Fund for the Social Protection of Disabled People which
is equivalent to the company’s one employee’s annual average salary (50% for
companies with 8 to 15 employees) for each position that is not occupied by a
disabled person.
Work permit
A foreign national can be hired in Ukraine following receipt of a work permit
issued by the State Employment Centre of Ukraine. A convincing statement of
reasons for a foreigner (as opposed to a Ukrainian national) to be employed with
a Ukrainian company is mandatory. It usually takes up to a calendar month to
receive a work permit;
Work permits are usually granted for a period of one year, but can be prolonged
for another year on an annual basis. A foreigner who is employed without a
proper work permit can be immediately deported at the expense of his/ her
employer.
22. 22Brochure_OS_Accounting&Tax.pptx
The situation may exist where foreign founders/ shareholders (regardless of
being individuals or legal entities) need to finance their Ukrainian companies
(subsidiaries). In general certain options exist for financing in the legal way,
namely:
Increase of the statutory fund.
Advantages:
full legitimacy;
minimum tax risk (in case of the investments in monetary form);
guarantee of repatriation of the investments and all profits associated with
them; no individual currency license required.
Disadvantages:
necessity to prepare obligatory package of the supporting documents;
changing of the statute of a recipient and further registration of the changes
with the state authorities;
the funds must be transferred after the registration. In the opposite case tax
authorities treat the funds rather as non-returnable financial assistance than
as increase of the statutory fund;
Refundable financial aid
Advantages:
refundable financial aid obtained from the founder/ shareholder (including
a non-resident) does not trigger any tax implications for its recipient within
365 days following the date of its receipt.
Disadvantages:
necessity to prepare obligatory package of the supporting documents;
obligatory registration with the National Bank of Ukraine before receipt by a
Ukrainian borrower;
ban to refund before the date directly presumed for the refund by the
relevant agreement, due to the limitations for operations in foreign currency
implemented by the National Bank of Ukraine in 2014 and prolonged for
2015.
In general the 3rd popular option is provision of the loan. If it is the case, then all
advantages and disadvantages provided above regarding the refundable
financial aid are relevant to the provision of the loan by the founder/
shareholder (including a non-resident).
18. OPTIONS TO FINANCE UKRAINIAN SUBSIDIARIES
23. Making your business work –
is what we do!
HWC LLC
Ukraine
Kyiv 04205
Obolon Residences
Obolonskyi Ave 26
+380 44 451-5154
office@hwc.com.ua
www.hwc.com.ua