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Regulation of Forex broker activities in the EU

Published: 25/10/2016 | blog

Tags:

#EU #Licensing

Obtaining permission to conduct Forex activity on the territory of EU Member States is governed by Directive 2014/65 / EC, which is also called MiFID2, since it is the new version of the Directive "On the Financial Instruments Market" 2004/39 / EC (MiFID), and is a legal basis of a single regulated market of financial instruments in the EU. This means that the rules laid down in this Directive are mandatory for the twenty-eight member countries of the EU and the three countries of the European Economic Area. First MiFID2 establishes the basic requirements for the operation of investment companies (investment companies under the Directive refers to and including financial brokers, so we will hereafter call them so) and the conditions for obtaining a permit for their activities in the EU. It is assumed that each Member State should adopt national legislation in accordance MiFID2 requirements, the provisions of which may not be more stringent than the provisions of the basic directive. However, MiFID2 also regulates the procedure of interaction of controlling the market in every European country, both among themselves and with the European specialized authorities (ESMA - the...

Planned new amendments to the IRC

Published: 03/10/2016 | blog

Tags:

#Ukraine

What to expect from the bill on amendments to the IRC of Ukraine Ministry of Finance 23/09/2016 on the official website has once again published a preliminary version of the draft law envisaging amendments to the Internal Revenue Code of Ukraine (hereinafter - IRC), with the aim of public discussion. These changes in the Ministry of Finance published the IRC is not the first time, subject to adjustment several times and will likely still remain unchanged, but the latest version of their merit. Changes in the IRC have been developed within the framework of the reform of the tax system as a whole, as well as the reform of the State Fiscal Service of Ukraine, which take place on the basis of the Cabinet of Ministers of Ukraine # 418-r dated 27.05.2016 year. The main goal of changes in the IRC is to improve the investment climate in Ukraine by simplifying the tax system and tax administration. In addition, it is expected that these changes will affect economic growth, attract new investment and create new jobs. Next, we see more focus on specific parts of the Tax Code of Ukraine, in which it is planned to make changes, namely: Such changes are expected in the part of the...

Future changes in the Convention between Ukraine and Cyprus on avoidance of double taxation

Published: 29/09/2016 | blog

Tags:

#Cyprus #Double taxation #Ukraine

The Ukrainian parliament is currently being finalized for submission to the discussion of the draft law on ratification of the Protocol amending the Convention between the Government of Ukraine and the Government of the Republic of Cyprus for the avoidance of double taxation and prevention of tax evasion on income tax. This Protocol provides for changes in the taxation of dividends, interest on loans, as well as the alienation of the property income. With regard to dividends, the top rate will be reduced from 15 to 10%. But lower tax rate - 5% survive only if ownership of at least 20% of the capital of a legal entity. But how exactly a person - remains a mystery, as in the original text of the Protocol stated "Partnership About", ie the "Partnership", while the bill "Partnership About" translated as "Society". As such, this provision leaves room for corruption because it allows you to abuse the tax authority in determining the rate that must be applied by the payer. The rate of taxation of interest on loans increased from 2% to 5%. Changes are also proposed concerning the taxation of income from the alienation of shares and corporate rights. Unfortunately, due to the...

A new procedure of registration of documents for travel of Ukrainian citizens abroad for permanent residence

Published: 28/09/2016 | blog

Tags:

#Ukraine

On October 1, 2016 shall come into effect a new "Procedure for the production of applications for registration of documents for traveling of Ukrainian citizens abroad for permanent residence", approved by order of the Ministry of Interior from №816 16.08.2016g. (Hereinafter - the Order), which defines the procedure for receiving and reviewing applications, making of them, as well as the execution of decisions taken. This document has been designed "On Amendments to Certain Legislative Acts of Ukraine regarding the documents that prove citizenship of Ukraine, of identity or her special status to liberalize the EU visa regime for Ukraine" on demand received two months earlier, the Law of Ukraine, which also come into force on October 1, and will replace the old order of 2004. In accordance with the new procedure, the application for registration of documents for traveling abroad for permanent residence is served in the territorial division of the State Migration Service at the place of registration of the person in Ukraine to the head of the territorial body of the GMR. Persons under 16 years of serving the application in person (in duplicate), and on behalf of persons...

About one-off declaration of individuals’ assets

Published: 27/09/2016 | blog

Tags:

#Asset Management #Ukraine

All sensational ideas and discussions about the "tax amnesty shadow of assets" or "legalization of income of dubious origin" embodied in the Tax Committee developed ASU bill "On Amendments to the Tax Code of Ukraine and other legislative acts of Ukraine concerning the single declaration of assets of individuals." The draft law MPs are planning to introduce the procedure of single declaration, which envisages the voluntary submission by resident individuals Ukraine in the period from 01 October to 31 December 2016 the information to the tax authorities of its assets (cash, securities, precious metals, real estate and construction in progress , vehicles, aircraft and watercraft, valuable personal property, corporate law, financial instruments, the right to property benefit, other property rights and intangible assets) without specifying their cost and sources of origin. Will be declared as assets under joint ownership, as well as those owned by the other person, manages assets for the benefit of the subject of the declaration. Finish with a single declaration of payment of the amount of tax liability, independently determined in a one-time declaration (such an obligation shall be...

NBU put on hold issuance of induvidaul licency to private individuals

Published: 21/09/2016 | blog

Tags:

#Licensing #NBU #Ukraine

Resolution of the Board of the National Bank of Ukraine №386 from 14.09.2016 year (here and after - the National Bank Ordinance) was suspended issuance of individual foreign exchange licenses to individuals. This measure was introduced in order to significantly reduce the capital outflow from Ukraine. National Bank of Ukraine said that overseas investment is unproductive and negative impact on the economy as a whole. Thus, in accordance with paragraph 7 of the Resolution of the NBU, "Individuals are prohibited to carry out transactions in cash on the basis of the National Bank of Ukraine of individual licenses." However, there is an exception to the above, namely, the prohibition does not apply to the operations that are carried out on the basis of individual licenses issued before the entry into force of the Regulation of the NBU. Also, the Resolution of the NBU has been extended a ban on purchases and transfer of foreign currency, which were held on the basis of the availability of individual licenses of the National Bank of Ukraine, except for such cases as: a) placement of legal entities of currency values on accounts outside Ukraine; b) execution of a resident...

The EU continues to fight against tax evasion

Published: 06/09/2016 | blog

Tags:

#EU

July 12, 2016 the Council of the European Union adopted Directive №2016 / 1164 against tax evasion (hereinafter - the Directive), which entered into force on 8 August 2016. This Directive is one of the components of the package of measures which was proposed by the European Commission within the framework of the so-called Plan BEPS (Action Plan erosion of the tax base and the withdrawal of income from the tax). The main purpose of the Directive is the fight against the schemes of tax evasion, which are used by many companies due to differences between the tax systems of the Member States of the European Union (hereinafter - EU). It should be noted that the Directive applies to all corporate tax payers in the territory of the Member States, including their subsidiaries located in third countries Next, we will focus on the basic methods of combating tax evasion: a) rules on controlled foreign companies (Controlled Foreign Company Rules - CFC). These rules allow tax authorities to charge taxes on undistributed earnings of foreign companies controlled by residents of EU countries. Thus, all EU member states will now have the authority to tax income, which was...

Accepted the order for identifying the banks risk operations

Published: 29/08/2016 | blog

Tags:

#Banks #NBU #Ukraine

National Bank of Ukraine has established an order for identifying the banks risk operations From the first in September 2016 comes into force, established by the Board of the National Bank of Ukraine №369 from 15.08.2016, the order of the document analysis and verification by banks (information) on financial transactions and their participants (hereafter - the Order). In particular, the list of indicators of risk operations, as well as change some existing ones. Just would like to draw your attention that prior to the adoption of the above order, the identification of risk transactions were settled a few officials of the National Bank of Ukraine letters. This Procedure adopted in order to prevent the commission of risky activities by banks, threatening the interests of depositors or other creditors of the bank and increase the effectiveness of risk management. It should be noted that the provisions of the Order are binding on all banks in Ukraine, as well as all the branches of foreign banks in Ukraine. On the basis of the provisions of the Order, any bank is obliged to provide a comprehensive analysis and verification of documents (information) on financial...

The liberalization of the requirements of the NBU continues

Published: 26/08/2016 | blog

Tags:

#NBU #Ukraine

In August 2016 the Board of the National Bank of Ukraine has taken a number of decisions, which are quite important. In particular, significant changes have touched: the procedure for the exchange of currency, lending practices by non-residents and residents of the order of transfer of funds, both in national and in foreign currency to non-residents. Next, we will focus in more detail on each of the following changes. Currency exchange An important and fundamental change, published 03.08.2015, the Instruction on the organization of currency exchange operations in the territory of Ukraine is the abolition of the requirement of a resident of documents confirming identity in carrying out various operations on the exchange or conversion rates. However, I would like to clarify that the changes do not cancel, and allow banking institutions not to require proof of identity of the resident in the commission of the following operations: Sale of foreign currency in the amount not exceeding the equivalent of 150 000 (one hundred and fifty thousand) hryvnia; The purchase of foreign currency in the amount not exceeding the equivalent of 150 000 (one hundred and fifty...

The draft law on simplification of export services

Published: 01/08/2016 | blog

Tags:

#Export #Ukraine

July 12 the Verkhovna Rada adopted a basis the bill "On Amendments to Certain Legislative Acts of Ukraine (regarding the removal of administrative barriers to exports of services)." The adoption of this law will be an important step in the development of the export of services (particularly in the IT-sector) as will minimize bureaucratic delays and simplify the procedure of signing a foreign trade agreement, and accounting operations. Among the innovations: the possibility of a foreign trade agreement not only on paper but in electronic form - by taking the offer (public offer), electronic messaging or billing invoice; the abolition of exchange controls for the export of services (works) and intellectual property rights; recognition of invoice primary records sufficient to confirmation of economic operations, and to confirm the agreement of non-resident counterparty price and other terms of the contract. Payment of invoice shall be deemed acceptance of works and replace signatures and seals; the possibility of drafting primary and composite records in electronic form, as well as establishing new details: electronic signature, electronic signature or electronic...

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