19 November 2010, 14:15
The Parliament amended the final version of the Tax Code of Ukraine:
Namely, Chapter 1 "General Provisions" states, "tax legislation of Ukraine consists of the Constitution of Ukraine, this Code, the Customs Code of Ukraine and other customs laws regulating the customs clearance of imported\exported commodities, international tax agreements of Ukraine considered as legally binding by The Verkhovna Rada of Ukraine; normative-legal acts adopted on the basis of and for implementation of this Code and the customs laws; resolutions of the Crimean Autonomous Republic and the local self-government bodies on the local taxes and charges fixed in compliance with this Code."
Pursuant to the Code, taxes and charges, as well as tax preferences, are fixed by The Verkhovna Rada of Ukraine, The Verkhovna Rada of the Crimean Autonomous Republic, village, township and city councils in compliance with this Code within their authorities as established by the Constitution of Ukraine and this Code.
Clause 7 is entitled "General Principles of Establishment of Taxes and Charges." This Code regulates any tax issues, which shall not be fixed or altered by any other laws of Ukraine, except of the laws amending this Code and\or provisions establishing responsibility for the violation of the tax legislation.
Under the Code, the Cabinet of Ministers ratifies the form of a simplified tax declaration, as envisaged by item 49.2 of clause 49 of this Code, and approves the order of transition of the taxpayers to submission of this declaration.
The act (certificate) of the documental in-house audit shall be registered and delivered to the taxpayer in person or their legal representative. If the taxpayer or their legal representative refuses to sign the act (certificate) of the documental in-house audit, the tax officials draw up a respective act on refusal.
Chapter III "Tax on Income of the Enterprises" states that if the funds paid to the budget under a zero rate tax are misused or not used by the taxpayer during the fiscal period, the remaining sum of the funds or the misused sum shall be paid to the budget in the first quarter of the next fiscal year.
Chapter IV "Individual Income Tax" exempts from tax the pension or monthly life allowance received from the Pension Fund of Ukraine or the budget in compliance with the law, or from the foreign sources, provided such pensions are exempt from tax or payable in the respective foreign country under the legally binding agreements ratified by The Verkhovna Rada of Ukraine;
Chapter XIX "Final and Transitional Provisions" states that persons who transferred onto the general tax system from a simplified tax system on enactment of chapter 14 of this Code and were not registered as the VAT-payers are subject to compulsory registration as VAT-payers with account for item 181.1 of clause 181 of chapter V.
Financial penalties shall not be imposed on the payers of the enterprise income tax and the taxpayers who transferred onto the general tax system for the violation of the tax legislation in the second and third quarters of 2011.
Clause 65 "Norms of the Individual Income Tax Allocation to the Budgets of the Local Self-Government" is presented in a new version, whereby "50 per cent of the individual income tax paid in accordance with the Tax Code of Ukraine in the territory of Kyiv is allocated to the budget of Kyiv. 100 per cent of the individual income tax paid in accordance with the Tax Code of Ukraine in the territory of Sevastopol is allocated to the budget of Sevastopol."
The Code supplements the Code of Ukraine on Administrative Infringements with clause 166-14 "Violation of the Order of Tax Accounts Acceptance by the State Revenue Bodies."
If an official of the state revenue service refuses to accept the tax declaration or poses any prerequisites for its acceptance (the change of figures in the declaration, reduction or cancellation of the negative values of the taxable assets and activities, the sums of budget compensations, illegal increase of tax obligations, etc.), they shall pay the fine in the rate of twenty-forty sums of a nontaxable income.
Chapter ХІХ is supplemented with a new item, whereby till 31 December 2011, the Cabinet of Ministers of Ukraine jointly with the concerned religious organizations shall develop and bring forward the motions on the alternative registration of individuals who refuse the individual tax payer number due to their religious convictions.
The draft was registered under Reg. No. 7101-1.