news
06.07.2010
State Committee for Entrepreneurship (the “Committee”) has developed a new concept of a unified tax
The Committee has published a Concept “On simplified tax system, auditing and reporting of small entrepreneurs”. The Concept differs from current legislation that regulates simplified tax system. Firstly, it is proposed to introduce significant restrictions to the applying of simplified system for individuals as well as for legal entity incorporated. In particular, it is proposed to limit use of simplified system for commercial subjects, who:
• Carry out the foreign currency exchange;
• Operate in the area of gambling business;
• Provide transportation services for citizens;
• Commit auditing, advertising, accounting, advocacy activities and activities in the legal area, engineering and many other kinds of activities.
Secondly, it is proposed to introduce differential unified tax rates. In particular, if an individual has an income of under 300 thousand UAH per year, the tax rate will be zero, incase of income from 300 to 600 thousand UAH per year the tax rate shall be 200-1000 UAH. For services for rent of non-residential premises the unified tax rate shall be 10% of revenue. Tax rates stipulated in percentage of revenue shall be applied for legal entities. Besides, payments to the pension fund and social insurance funds shall be paid separately and shall not be included in the sum of the single tax.
• Carry out the foreign currency exchange;
• Operate in the area of gambling business;
• Provide transportation services for citizens;
• Commit auditing, advertising, accounting, advocacy activities and activities in the legal area, engineering and many other kinds of activities.
Secondly, it is proposed to introduce differential unified tax rates. In particular, if an individual has an income of under 300 thousand UAH per year, the tax rate will be zero, incase of income from 300 to 600 thousand UAH per year the tax rate shall be 200-1000 UAH. For services for rent of non-residential premises the unified tax rate shall be 10% of revenue. Tax rates stipulated in percentage of revenue shall be applied for legal entities. Besides, payments to the pension fund and social insurance funds shall be paid separately and shall not be included in the sum of the single tax.
21.06.2010
STAU: a foreigner can let real estate on lease only through the legal entity
In the letter 2745/6/17-0716 STAU explained procedures for taxation with income tax of lease the real estate that belongs to non-resident, but who lives in the territory of Ukraine.
STAU insists that lease of property that belongs to non-resident individual under subclause 9.1.3 of the Law No.889 “On individuals’ Incomes Tax” must be exercised only by the permanent representative office registered by such a non-resident in Ukraine or through a Ukrainian legal entity, which represents said non-resident (pursuant to the contract). Any other procedure for lease will be considered by STAU as tax evasion.
Herewith the Ukrainian legal entity – is considered as a tax agent and in civil contracts with non-residents it is not allowed to state cautions about taking on payment of tax commitments by the tenants of said real estate (according to part 2 of Article 21 of said Law).
Tax rate in such operations is calculated according to clause 7.3 of Article 7 of said Law. This rate is also applied to investment incomes obtained by non-residents from sources in Ukraine.
STAU insists that lease of property that belongs to non-resident individual under subclause 9.1.3 of the Law No.889 “On individuals’ Incomes Tax” must be exercised only by the permanent representative office registered by such a non-resident in Ukraine or through a Ukrainian legal entity, which represents said non-resident (pursuant to the contract). Any other procedure for lease will be considered by STAU as tax evasion.
Herewith the Ukrainian legal entity – is considered as a tax agent and in civil contracts with non-residents it is not allowed to state cautions about taking on payment of tax commitments by the tenants of said real estate (according to part 2 of Article 21 of said Law).
Tax rate in such operations is calculated according to clause 7.3 of Article 7 of said Law. This rate is also applied to investment incomes obtained by non-residents from sources in Ukraine.
14.06.2010
State Tax Administration of Ukraine (hereinafter STAU): which factoring is not subject to VAT
The STAU has clarified some matters of factoring services subjects to VAT.
Under laws of Ukraine, taxation of factoring services operations directly depends on the subject of allocated debt. Debt trading for money and securities are generally not subject to VAT (subclause 3.2.5 of VAT Law), but factoring as well as requirements collection is an exception.
On the other hand, there are exceptions to the factoring imposing: those are the cases when allocated debt is expressed in currency, securities as well as compensation ones (certificates), investment certificates, mortgage certificates with fixed incomes, housing checks, land booms, derivatives.
Factoring operations with other objects are the subject to VAT in the established order. “Funds” as an object to debt shall exempt factoring operation from VAT not only by the primary, but by all further bonds retreats.
Under laws of Ukraine, taxation of factoring services operations directly depends on the subject of allocated debt. Debt trading for money and securities are generally not subject to VAT (subclause 3.2.5 of VAT Law), but factoring as well as requirements collection is an exception.
On the other hand, there are exceptions to the factoring imposing: those are the cases when allocated debt is expressed in currency, securities as well as compensation ones (certificates), investment certificates, mortgage certificates with fixed incomes, housing checks, land booms, derivatives.
Factoring operations with other objects are the subject to VAT in the established order. “Funds” as an object to debt shall exempt factoring operation from VAT not only by the primary, but by all further bonds retreats.
