News (#01-02 January-February 2018)

Draft

Draft proposes popularization of payment terminals

The Draft Resolution of the Cabinet of Ministers On Approval of Requirements to Business Entities for Reception of Electronic Payment Means in Payment for Goods Sold (services provided), made public by the Ministry of Economic Development, proposes to oblige business entities selling goods (providing services), including remotely, to ensure the possibility of cashless payments for goods and† services by them using electronic payment means via payment devices and/or services:

Ч by 1 July 2018 Ц business entities Ч general taxation system taxpayers, as well as single tax payers of the 4th group;

Ч by 1 January 2019 Ц business entities Ч single tax payers of the 2nd and 3rd groups having a sales area of more than 20 sq. m., carrying out commercial activities in settlements with city status;

Ч by 1 July 2019 Ц business entities Ч single tax payers of the 2nd and 3rd groups having a sales area of up to 20 sq. m, carrying out commercial activities in settlements with the city status, and single tax payers of the 2nd and 3rd groups, carrying out commercial activities in settlements that do not have city status;

Ч by 1 January 2020 Ц business entities Ч single tax payers of the 1st group.

Corresponding changes are provided for public discussion.

Also, it is planned to oblige business persons to conduct payments for goods sold (services provided) in excess of the limit set for payments in cash by the National Bank of Ukraine (as of today, according to the Regulation on conduct of cash transactions in the national currency in Ukraine, this sum is UAH 50,000) exclusively in cashless form.

Amendments to the Budget Code

Parliament has adopted in the final reading Draft Law No.7116 On Amendments to the Budget Code of Ukraine.

The Draft proposes provision of an additional subsidy to local budgets for maintenance of educational and health facilities.

It is also planned to level the financial capacity of local budgets and to eliminate imbalances arising in the process of amalgamation of territorial communities.

For this purpose, the Draft provides for a change in percentage of withdrawals from local budgets, which are transferred to the state budget in the form of a reverse subsidy, from 50% to 80%.

Moreover, it stipulates continuing the practice of granting stabilization grants from the state budget to local budgets (until the process of amalgamation of territorial communities is completed).

The document intends to introduce distribution of the total amount of expenditures for higher education on the basis of a formula taking into account the following criteria: number of applicants for higher education under education and qualification levels and specialty occupations, correction coefficients applied to the number of applicants for higher education under groups of specialty occupations.

It is also planned to revise general approaches to distribution of educational subventions between local budgets and for determination of financial standards of budget capacity, which are used to distribute educational subventions.

From 2018, expenditures for providing subsidies on payments for housing and public utility services are transferred to local budgets.

Also, opportunities to allocate income to special funds of local budgets within the framework of aid programs by governments of other states, international organizations, and donor agencies are being expanded.

It is expected to prolong for 2018-2019 the effect of provision on allocation of 13.44% of the excise tax on fuel produced in Ukraine and fuel imported to the customs territory of Ukraine to the budgets of bodies of local self-government.

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