Алёна Выдыш, Author at Finance Business Service

The Cabinet of Ministers Excluded 5 Countries from Offshore List

Published: Olena Vydysh | 08/02/2018 | news

On January 31, at the meeting of the Ukrainian government, it was decided to exclude 5 countries from the list of offshore companies, namely Estonia, Latvia, Georgia, Malta and Hungary. We remind that on January 19, the Ministry of Finance of Latvia announced that the inclusion of this country in the list of offshore zones was unreasonable. Earlier, Ukraine included Estonia in the list without notification of the Estonian government, so the Prime Minister of the state Jüri Ratas reacted by a statement on the need to remove the jurisdiction immediately from the offshore list. It took place on January 26, during his meeting in Davos with the Prime Minister of Ukraine Vladimir Groysman and the Minister of Finance of Ukraine Aleksandr Danilyuk. In total in 2017, Ukraine expanded the list of the countries, the operations with counterparties of which are subject to control in the administration of the law of transfer pricing, to 25 countries. Guadeloupe, Guatemala, French Guiana, the Commonwealth of Dominica, the Dominican Republic, Estonia, Iran, Cuba, Laos, Latvia, Lebanon, Mauritius, Malta, Morocco, Monaco, the United Arab Emirates, Singapore, Georgia and Hungary were added to...

Since January 1, 2018, Amount of Official Payments Has Been Increased in the BVI

Published: Olena Vydysh | 25/01/2018 | news

In connection with the entry into force of amendments to the Law on Commercial Companies of 2004 (as amended in 2005), since January 1, 2018, the official fees have been increased in the BVI, levied from business companies in the Register of Corporate Affairs. These changes were adopted and published by the Government of the British Virgin Islands at the end of 2016. Initially, it was assumed that the amount of official payments will be increased from July 1, 2017, but in March of last year, the entry into force of the changes was postponed until January 1, 2018. The increase in the amount of following payments is among the most notable changes: Accordingly, the fines for late payment of annual fees have also been increased, since they are set as a percentage of the annual fee. The amount of payment for the restoration of the company in the Register has also been significantly increased. Some new duties have been introduced, including: for the primary registration of a copy of the register of company participants; for registration of changes in the register of participants; for registration of an application for consent to use a limited in the use word or a...

south-korea-announced-about-introduction-of-24-tax-for-cryptocurrency-exchanges

Published: Olena Vydysh | 25/01/2018 | news

According to the IA Yonhap, South Korean authorities announced about the introduction of income tax for local cryptocurrency exchanges in the total amount of 24.2%. This rate consists of 22% of corporate and 2.2% of local income tax. This is how the income of all South Korean companies is taxed, if it exceeds 20 billion won, which equals $18.7 million. Now this requirement extends to cryptocurrency exchanges. According to an official from the Ministry of Strategy and Finance of South Korea, the exchanges will be obliged to pay taxes by March-April. So, one of the largest exchanges of the country Bithumb, which last year’s revenues might exceed 317 billion won ($297 million), will have to pay a tax of about 60 billion won ($56.3 million). According to Coinmarketcap, the daily trading volume on this exchange is about $3.2 billion. The decision to impose a tax on stock exchanges was made a few days after it became known that the income of South Korean banks with commissions for cryptocurrency trading had increased in 36 times - up to 2.2 billion won ($2 million). We remind that in December 2017, it has become known that the government of South Korea plans to take measures to...

European VAT On Providing Services

Published: Olena Vydysh | 24/01/2018 | blog

The companies which have customers in the European countries have to determine the state in which their income is subject to VAT and related consequences with respect to the indirect tax. The supply of “services” is defined as something that is not a “commodity”. Each supply of services should be analyzed in the light of the rules of the place of delivery in order to ensure the right accounting of VAT by the right person in the proper jurisdiction. It is especially important on making global sales that may lead to VAT obligations, and the rules of the place of delivery are the starting point for this. As in the case of goods, there are different rules for determining the place of delivery (as well as, accordingly, the place of their taxation) for the services provided to the business (B2B) and services to the end user (B2C). As a general rule, the provision of B2B services is taxed at the location of the client. In this case, the customer must provide the VAT number to the service provider, otherwise such a transaction is considered as B2C. If the client is a resident of a third country (not EU Member State) and does not have a European VAT number, he must provide...

The European Union Excluded 8 Countries and Territories from the “Black List” of Offshore Zones

Published: Olena Vydysh | 24/01/2018 | news

The European Union excluded 8 countries and territories from the “black list” of offshore zones, as it was reported on the official website of the Council of the European Union on January 23. The following countries were removed from the list: Barbados, Grenada, the Republic of Korea, Macau, Mongolia, Panama, Tunisia and the United Arab Emirates. As it was noted in the message, the exсlusion was justified taking into account the expert assessment of the obligations undertaken by these jurisdictions to eliminate the shortcomings identified by the European Union. In each case, the commitments were backed up by the letters signed at a high political level. At the same time, the above countries and territories belong to a separate category now, subject to close monitoring. We remind that on December 5, 2017 the EU announced its intention to exclude 17 jurisdictions from the “black list” of offshore zones that do not take appropriate measures to ensure financial transparency and combat tax crimes. Thus, 9 of the planned 17 countries and territories remained on the list, namely American Samoa, Bahrain, Guam, Marshall Islands, Namibia, Palau, Saint Lucia, Samoa and Trinidad and...

Moratorium on Inspections Will Be in Force until the End of 2018

Published: Olena Vydysh | 10/01/2018 | news

The changes in the Law of Ukraine “On the Temporal Features of the Implementation of Measures of State Supervision (Control) in the Sphere of Economic Activity” have been published. The innovations assume the extension of the moratorium on the conduct of planned measures by the state supervision (control) authorities on the implementation of state supervision (control) in the sphere of economic activity by the end of 2018. In addition, until December 31 of this year, unplanned measures of state supervision (control) are carried out by the state supervision (control) authorities on the following grounds: in accordance with Part 2 of Art. 3 Memorandum No. 1728 (as agreed by the central executive authority implementing the state regulatory policy, policy on supervision (control) in the sphere of economic activity, licensing and permissive system in the sphere of economic activities and deregulation of economic activities); upon a written request of a business entity to the relevant body of state supervision (control) on the implementation of an event of state supervision (control) at his request; in the event of an accident or death due to an accident in connection with...

Rules for Choosing the Place of Taxation On Selling Goods

Published: Olena Vydysh | 10/01/2018 | blog

The next issue, which we suggest to figure out during the consideration of the European VAT system, is the place of taxation on delivering goods. This issue is decisive for the companies that have a large number of counterparties in Europe, when planning their trading activities. The EU Directive 2006/112 /EU defines different rules for determining the place of taxation for each type of transactions: supply of goods intra-Community acquisition of goods importation of goods supply of services For the supply of goods, VAT is levied at the place of delivery depending both on the way of supply and the nature of the goods themselves: If the goods are not sent or transported, the place of taxation will be the location of the goods at the time of delivery. For example, if an Austrian company after renting a car in Austria from a German company decides to purchase this machine, Austria will be the place of delivery, and VAT will apply in Austria. If the goods are dispatched/transported by the supplier, the customer or a third person, the place of delivery (and accordingly the taxation) will be the country where the goods were at the beginning of the...

The National Bank Has Abolished a Number of Requirements for Banks Regarding the Conduct of Foreign Exchange Operations by the Сlients

Published: Olena Vydysh | 29/12/2017 | news

The National Bank of Ukraine has abolished some requirements for banks regarding the conduct of foreign exchange operations by the clients. As the press-service of the Regulator informs, now the banks are provided with effective tools that allow them to manage risks independently using a risk-based approach. In this connection, the strengthened control over the process of the transactions by the clients has lost its relevance by the National Bank. Mitigation of requirements also concerns the reduction of obligations of the banks with respect to the statistical information they provide. So, from January 1, 2018, the requirement for daily sending of the information file # 2C to the NBU, effective from September 2015, was canceled. Information on currency transactions of the clients will be provided by the banks to the National Bank by updated forms of statistical reporting according to the rules for the organization of statistical reporting approved by the NBU Resolution No.129 of March 1, 2016. In addition, the obligatory certification by a seal of the copies of documents provided by the clients to the bank for currency transactions is abolished. The above changes were...

Why is the EU VAT System Necessary and How it Works

Published: Olena Vydysh | 18/12/2017 | blog

Данным блогом мы начинаем серию публикаций, посвященных европейскому НДС, который так интересует наших клиентов. Неудивительно, ведь он имеет большое значение для ведения бизнеса в ЕС. Поскольку тема очень обширная, обсуждать ее будем поэтапно. И начнем мы с рассмотрения сути и назначения системы НДС, а также общих понятий и правил. On posting this blog, we are starting a series of publications on the topic of the EU VAT which is so interesting for our customers. It is not surprising, as it is important for doing business in the EU. As the topic is very extensive, we will discuss it step by step. Let’s start with considering the essence and purpose of the VAT system, as well as the general concepts and rules. The idea of the European VAT is that enterprises could trade within the EU without being registered as a VAT payer in each individual union country. The rules of the EU VAT are quite...

The Malta Gaming Authority Is Collecting Opinions of Interested Parties in the Field of Distributed Ledger Technology and Cryptocurrency Projects

Published: Olena Vydysh | 08/12/2017 | news

The Malta Gaming Authority (MGA) is constantly monitoring the tendencies in the field of Blockchain and cryptocurrencies, including their application in various industries related to innovative technologies. Remaining at the forefront of innovations and keeping up with new developments within the gaming industry, the Authority is considering the possibility of allowing its licensees to use cryptocurrency and distributed ledger technology. The MGA is fully aware of the existing risks and the need to eliminate them for: consumer protection; prevention of crime and money laundering or funding of terrorism (in accordance with the 4th Anti Money Laundering Directive); maintenance of the reputation of the Maltese jurisdiction. At this point, the Regulator is in the process of creating the “sandboxed environment” (test and learn) for the use of digital currency in the remote gambling. At the same time, the development of guiding principles for the use of distributed ledger technology and methods of its implementation in various industries is being carried out. Taking into account the fact that a significant degree of expertise within the industry lies within the...

Author: Алёна Выдыш