Rolan Bondarets, Author at Finance Business Service

Leasing of Real Estate by a Natural Person

Published: Rolan Bondarets | 25/05/2018 | blog

Many citizens who own residential and non-residential real estate intend to lease it. But they have some questions: is it necessary to register as an entrepreneur in this case, are there any peculiarities in taxation and are there any restrictions? According to Art. 319, 320 of the Civil Code of Ukraine - the owner owns, uses, disposes of his property at his own discretion and has the right to make any actions with respect to his property that do not contradict the law, including using his property for entrepreneurial activities. As we can see, the realization of the right to lease his own real estate by a natural person can be carried out both within the framework of entrepreneurial activity (by a natural person-entrepreneur) and outside of entrepreneurial activity (without registration by a natural person-entrepreneur). We will consider in detail, what is the difference between a natural person and a natural person-entrepreneur, when leasing his own real estate. Natural person The features of taxation of income of a natural person from leasing of real estate is regulated by art. 167, art. 170 of the Tax Code of Ukraine, Resolution of the Cabinet of Ministers of Ukraine No....

Tax planning: optimization, minimization and avoidance of taxes

Published: Rolan Bondarets | 16/05/2018 | blog

Taking into account an extremely unstable tax legislation of Ukraine, more and more business owners are thinking about tax planning for their enterprise or holding. Tax planning is the process of choosing the most optimal form of taxation and reducing the tax burden on business by using certain methods. Methods of tax planning for business The methods or ways by which tax planning is implemented can be conditionally divided into: tax optimization; tax minimization; tax avoidance. The main principle of these methods is that they should not go beyond the legal field, that is, their implementation is carried out exclusively within the framework of the current legislation. However, not everyone can clearly see the line between the tax optimization, tax minimization, tax avoidance and tax evasion. Many people, implementing tax planning, are guided precisely by the tax avoidance, which has a very fine line with such a concept as tax evasion. And this, in turn, often leads to problems with fiscal authorities and in some cases ends with additional charges, fines, and sometimes criminal cases. It should be noted that tax planning is widely used throughout the world...

Authorized Capital of LLC: What You Need to Know

Published: Rolan Bondarets | 11/05/2018 | blog

Finance Business Service reminds that on 17.06.2018 the Law of Ukraine “On Limited Liability Companies” will come into force. Thus, there will be significant changes in the near future regarding the most widespread organizational and legal forms of a business entity, a limited liability company. That is, will the creation of a company, the formation of the authorized capital, the inclusion and exclusion of members of the company, management of the company, etc., take place under the new rules? In any case, the creation of a company can not be carried out without the formation of the authorized capital. The experts of Finance Business Service were analyzing the innovations in the formation of the authorized capital. As you know, the authorized capital of a limited liability company consists of contribution from its participants. The size of the authorized capital of a company will consist of the nominal value of the shares of its participants, expressed in the national currency of Ukraine and may be further determined in percentage. There are no innovations in relation to the minimum size of the authorized capital. That is, the issue of establishment of the minimum and...

V International Tax Forum through the eyes of the experts of FBS

Published: Rolan Bondarets | 18/04/2018 | blog

The partner of Finance Business Service Yuri Krasilnikov and tax disputes specialist Rolan Bondarets attended the V International Tax Forum, which took place on April 13, 2018. In this blog, we will tell how the event was held, what issues were most actively discussed by the participants, what points were voiced by the speakers, as well as share our own thoughts. The speakers were the representatives of business, representatives of the legislative, executive and judicial branches, as well as the specialists in the field of taxation. Many interesting and topical issues for Ukraine were discussed within the Forum. At the beginning of the event, Algirdas Shemeta - the business ombudsman in Ukraine - recalled the reasons that led to the appearance of the BEPS (Base Erosion and Profit Shifting) plan and its essence. “Overoffshorization” of the world business became the catalyst of the world economic crisis of 2008-2009. This prompted the OECD to identify the main causes of the crisis, as well as to discover and develop the methods for its prevention in the future. In fact, BEPS has emerged as a protective mechanism to prevent tax evasion, which essence is that companies must be...

What has been changed in the tax legislation of Ukraine since 2018: briefly about the main

Published: Rolan Bondarets | 03/04/2018 | blog

In 2018, Ukrainian tax legislation was subject to a number of changes. Having analyzed the Law of Ukraine No. 2245-VIII “On Amendments to the Tax Code of Ukraine and certain legislative Acts of Ukraine to ensure the balance of budget revenues in 2018”, which came into force on January 1, we decided to consolidate the most significant reforms and summarize. The issue of this blog will be dedicated to it. Overall changes Key changes in the general rules of tax law include: exclusion from the definition of “bad debt” of indebtedness of natural persons, forgiven by the creditor; introduction of a new concept of a “syndicated financial loan”; clarification of the definition of “related persons” for TP purposes; introduction of the term “new well” in order to regulate the use of preferential rent rates for the extraction of natural gas; expansion of the list of payments not considered as royalties for the transfer of the right to distribute IPI without the right for their reproduction; clarification of the definition of the weighted average retail price; introduction of the obligation for the taxpayers to ensure the storage of...

What changes have been made to the system for blocking tax invoices

Published: Rolan Bondarets | 29/03/2018 | blog

As we noted earlier, pursuant to the Law of Ukraine No. 2245-VII of 07.12.2017 “On Amendments to the Tax Code of Ukraine and certain legislative acts of Ukraine to ensure the balance of budget revenues in 2018”, the Cabinet of Ministers of Ukraine adopted Resolution No. 117 of 21.02.2018, which approved: “The procedure for suspension of registration of the tax invoice/calculation adjustment in the Unified Register of Tax Invoices”, “The organization of work of the commissions that decide to register a tax invoice/calculation adjustment in the Unified Register of Tax Invoices or refusal in such registration”, “Procedure for considering complaints against the decisions of the commissions that decide to register a tax invoice/calculation adjustment in the Unified Register of Tax Invoices or refuse to register them”. If the basic algorithm for suspending the registration of tax invoices and calculation adjustments (TI/CA) has remained almost unchanged, then the order of their “unlocking” has undergone significant changes. We will figure out what exactly has been changed, and whether this will simplify the life of the taxpayers. As before, the taxpayer will be...

Blocking of tax invoices in a new way: how will it be?

Published: Rolan Bondarets | 14/03/2018 | blog

In order to fulfil the requirements of the Law of Ukraine No. 2245-VII “On Amendments to the Tax Code of Ukraine and certain legislative Acts of Ukraine to ensure the balance of budget revenues in 2018” of 7.12.2017, the Cabinet of Ministers of Ukraine adopted the Resolution No. 117 of 21.02.2018 which approved: the procedure for suspending the registration of the tax invoice / calculation adjustments in the Unified Register of Tax Invoices; the operating procedure of commissions that take decisions on the registration of a tax invoice / calculation adjustments in the Unified Register of Tax Invoices or refusal of such registration; the procedure for considering complaints against decisions of commissions that take decisions on registration of a tax invoice / calculation adjustments in the Unified Register of Tax Invoices or refusal of such registration. What has been fundamentally changed? The first thing I want to note is that previously, only the business transaction that was reflected in the tax invoice was subject to monitoring. And now the monitoring of the tax invoice / calculation adjustment (hereinafter - the tax invoice) is carried out according...

Questions and answers to the Inaccessibility of Deposits in ABLV Bank

Published: Rolan Bondarets | 05/03/2018 | blog

On February 25, the Latvian bank ABLV Bank published supplementary information for the depositors on its official website in the form of the most common questions and answers to them. “What should the depositors and clients of the bank do, holding funds at ABLV Bank at the moment? At the moment, clients do not have access to their funds either in the branches or through the Internet bank. The card system of the bank is turned off, therefore the customers cannot pay by bank cards and cannot withdraw cash from ATMs. Customers can freely transfer securities from their accounts of financial instruments to the bank. What sum will be paid by the state to the bank’s clients? The state guarantees each client 100 000 euros in any Latvian bank. In case of the moment of inaccessibility of deposits, payments are made from the funds of the Deposit Guarantee Fund. ABLV Bank has enough liquid assets to return all sums paid from the Deposit Guarantee Fund! What funds of the bank’s customers are guaranteed payment? The guaranteed payment covers all deposits in any currency on all accounts, including time deposit accounts, current accounts, salary accounts, savings accounts, including...

The Government Increased the List of Beneficiaries Regarding the Payment of Court Fee

Published: Rolan Bondarets | 03/03/2018 | news

The Government of Ukraine has amended Art. 5 of the Law “On Court Fee”, providing for the expansion of the list of applicants and claimants, who are exempt from paying court fee. The changes are confirmed by the Law of Ukraine “On the features of the state policy on securing the state sovereignty of Ukraine in the temporarily occupied territories in the Donetsk and Luhansk regions” and came into force on February 24, 2018. So, Part 1 of Art. 5 “On Court Fee” is supplemented with clauses 21 and 22 of the following content: “21) the applicants - in cases on applications for establishing facts of legal significance filed in connection with armed aggression, armed conflict, temporary occupation of the territory of Ukraine, natural or man-made disasters that led to forced relocation from the temporarily occupied territories of Ukraine, death, injury, imprisonment, unlawful deprivation of liberty or abduction, as well as violation of property rights on movable and/or immovable property; 22) the claimants - in cases on suits against the aggressor state, the Russian Federation, on the compensation of property and/or moral damage caused by the temporary occupation of the...

Government Approved the Rate on Installment Plan on VAT Payment for the Import of Production Equipment

Published: Rolan Bondarets | 23/02/2018 | news

On February 21, 2018, the Resolution of the Cabinet of Ministers of 7.02.2018 No. 85 came into force, approving the procedure for granting an installment plan for VAT payment when importing the equipment for own production into Ukraine (hereinafter - Procedure) in accordance with clause 65, subsection 2, section XX of the TCU, No.2245-VIII of 07.12.2017. The Procedure provides that in order to receive an installment plan for the payment of value-added tax, when importing equipment into the customs territory of Ukraine, the payer is obliged to submit an application to the customs office, which form must be also approved by the above-mentioned resolution. The application must specify the term of the installment plan, name, quantity, cost and code of the the UCG FEA of the imported equipment, its location, the purpose of importation, the CFEA of the payer, etc. The payer must attach the following to the application: business project, business plan or other document with a detailed description of the technological process (with economic calculations) and expected performance; available conclusions of state bodies, expert institutions, organizations, state standards and...

Author: Rolan Bondarets