Grant Thornton: Latest News

Important changes in tax depreciation and financial leasing commencing 01.01.2012

Tue, 24 Jan 2012 12:50:00 +0100

Changes in tax depreciation
In the course of the year 2011 the tax payer was allowed to treat as taxable cost depreciation of an asset for the whole financial year regardless of when during the same year was the asset acquired (e.g. even if the asset was purchased in December). As of 1.1.2012 new rules covering depreciation of assets are in force.
Changes in financial leasing
Until the end of year 2011 the acquisition of tangible asset under a leasing agreement with a purchase option, i.e. via financial leasing constituted a possibility for tax planning. Assets acquired in a form of financial leasing could be depreciated over shorter term, as short as 60% of the regular depreciation period. A machine regularly depreciated over 6 years, could be depreciated over 3.6 years if acquired via financial leasing (depending on the period stated in the leasing agreement).

Read the whole article here (PDF).

Changes in labelling tax payments

Tue, 24 Jan 2012 12:49:00 +0100

New method in labelling tax payments is in force as of 1.1.2012. The changes relate to the bank account number to which the tax payment is made and to the variable symbol.
1. The bank account number
Each entity has its own account number assigned, which will be part of the account.
2. Variable symbol
The variable symbol used with the tax payment changes as well. The new form of variable symbol should facilitate the identification of the incoming tax payments by the financial authorities.
3. Constant symbol
The constant symbol remains unchanged.

Read the whole article here (PDF).

Tax law changes for 2012

Thu, 12 Jan 2012 15:34:00 +0100

Read the whole article here (PDF).

VAT-system registration and deregistration

Tue, 27 Dec 2011 16:00:00 +0100

Read the whole article here (PDF).

Double Taxation Treaty Ukraine/Cyprus

Thu, 15 Dec 2011 16:02:00 +0100

The relations between Ukraine and Cyprus are regulated by the Double Taxation Treaty as of 29.10.1982 between the former USSR and the Republic of Cyprus. Most dividends, interests and royalties paid from Ukraine to Cyprus are fully free from the withholding tax in Ukraine. The tax burden of such income in Cyprus is very low.

Cyprus is one of the biggest foreign investors in Ukraine, there are assumptions that the invested capital origins from Ukraine mostly. For many foreign investors it is a sensitive issue to found a Cypriote holding company for business activities in Ukraine.

Read the whole article here (PDF).

Objections to decisions of the tax authorities

Thu, 15 Dec 2011 15:59:00 +0100

Companies must regularly assert their rights because of the tax authorities’ fiscal approach. Illegal decisions of the tax authorities are to be constantly objected. The decisions are to be objected at the administrative level or in the court. The administrative objection is not compulsory; a tax payer can immediately go to the court. All legal appeals and claims are to be provided in a written form.

Read the whole article here (PDF).

Registration as VAT-payer

Thu, 15 Dec 2011 15:53:00 +0100

The Tax Code of Ukraine stipulates 2 possibilities for the registration as a VAT-payer:

1. Compulsory registration
2. Non-binding registration

A tax payer is to be registered as a VAT-payer in case the total amount of transactions over the period of 12 calendar months exceeds 300 TUAH.

Read the whole article here.(PDF)

Tax administration goes paperless: Obligation of electronic submission of documents from January 4, 2012

Thu, 15 Dec 2011 10:00:00 +0100

Obligation to submit documents by electronic means to tax authority, custom authority and ministry has been imposed on every
- taxable entity which is a VAT payer,
- tax adviser representing a taxable entity in tax administration,
- lawyer representing a taxable entity in tax administration.
Up until the end of 2011, the obligation of electronic submission of documents applied only to summary statements and applications for foreign VAT refund.

Read the whole article here (PDF).

End of notarisation and apostille: Simplification in appointing a representative

Thu, 15 Dec 2011 09:59:00 +0100

Up until the end of 2011, a power of attorney for representation granted by a taxable entity had to be signed and notarized. In cases when a foreign taxable entity with a registered seat in a country did not accede to the Hague Convention, the Slovak tax authority required apart from notarization also a verification of the power of attorney in question by apostille.In cases of a taxable entity being represented by a representative in the future, then the scope of the power of attorney will be regulated in the power of attorney granted in writing or orally in the minutes of the tax authority without the obligation to include an officially verified signature, i.e. without notarization.

Read the whole article here (PDF).

Obligation to use electronic cash register: Revenues in cash will have to be registered electronically

Thu, 15 Dec 2011 09:58:00 +0100

According to the Act on electronic cash register, with the effect from January 1, 2012 the entrepreneurs will have to use:
1. a cash register, i.e. an electronic registration device equipped with the technical parts laid down in the Act on electronic cash register or a computer with its own registration programme and with a separate fiscal printer,
2. a cash register that has been certified by an accredited entity, has a tax code assigned by the tax authority, is marked with a seal and complies with further requirements laid down in the Act on electronic cash register as well as other technical requirements provided by a special regulation.

Read the whole article here (PDF).