Amendments to the State Budget of Ukraine for 2015

On September 17, 2015 the Verkhovna Rada of Ukraine adopted the Law on Amendments to the Law of Ukraine on State Budget for 2015 No. 704-VII. According to the information from official web portal of the Verkhovna Rada of Ukraine, the law took effect on September 20, 2015.

In particular, the Law amends the minimum wage, which should be equal in 2015:

  • Monthly amount: from January 1 – 1,218.00 UAH, from September 1 – 1,378.00 UAH.
  • Hourly amount: from January 1 - 7.29 UAH, from September 1 - 8.29 UAH.

Please note that a change in the minimum wage from September 1, 2015 affects the following indicators:

  • The maximum monthly rate of labor payment on which single social contribution is provided (held back) equals 23,426.00 UAH.
  • The living wage for indexation of income equals 1,378.00 UAH.
  • The minimum charter capital of the joint stock company equals 1,722,500.00 UAH.
  • The minimum and maximum rate of single social contribution for private entrepreneurs of 1-3 group equals 478.14 UAH and 8,128.86 UAH accordingly.
  • The base rate was changed for the assessment of some social benefits to be calculated on the basis of the minimum wage.

Transfer pricing legislation

On September 16, 2015 the Cabinet of Ministers of Ukraine approved the new list of countries (territories) meeting the criteria specified by subsection 39.2.1.2 subparagraph 39.2.1 paragraph 39.2 of Article 39 of the Tax Code of Ukraine, namely the countries with a corporate tax rate of at least 5 percent lower than Ukraine's general corporate rate. The access to information is complicated.

The new list contains 65 countries and territories whereas the previous list comprised 76 countries and territories. In comparison with the previous list of countries (territories), in which the company rate (corporate tax rate) is at least 5 percent lower than in Ukraine, in the new list those countries (territories) are excluded: Guadeloupe, Georgia, Republic of Lebanon, United Arab Emirates, Republic of Singapore, Switzerland and Jamaica.

Please note that neither the Regulation nor the Tax Code of Ukraine contains transitional provisions which should govern the necessity of reporting on operations with countries removed from the List. We look forward to the official interpretation on this issue.

The introduction of uniform benchmarks of the customs value

On September 16, 2015 the Cabinet of Ministers of Ukraine adopted the Resolution No. 724 “On the use of risk management system of benchmarks of the customs value,” which introduced the application by fiscal and customs authorities of single benchmarks of the customs value of goods during customs clearance, imported into the customs territory of Ukraine under the customs treatment of import (release into free circulation).

The Law on Electronic Commerce

On September 30, 2015 the Law on electronic Commerce from 03.09.2015 No. 675 – VIII came into force.

The document defines the organizational and legal basis of the activities in electronic commerce in Ukraine, establishes the procedure for electronic transactions with the application of information and telecommunication systems, and defines the rights and obligations of the parties in relations in electronic commerce.

The Law defines such terms as “electronic commerce,” “electronic trade,” “electronic contract,” “electronic transaction,” “internet store,” and other terms.

In particular, the Law defines the legal status of participants in relations in electronic commerce, specifies the procedure for concluding electronic transactions and affixing signatures in electronic commerce, things that are very important for the purposes of accounting and taxation in Ukraine.

Special duties on imported cars were abolished

In accordance with the decision of the Interdepartmental Commission on International Trade No. СП-335/2015/4442-06 from 30 September 2015, special duties on the import of cars were abolished regardless of the country of origin and export, which had been applied by the resolution of the Commission from 28.04.2012 No. СП-275/2012/4423-08.