Tax & Legal news (01.03.24)

Below, you will learn about:

• The National Bank has clarified a number of currency restrictions
• To participate in civil and administrative proceedings, it is mandatory to register in the Electronic Court
• The Form of the Report on Controlled Transactions and Annex TP to the Corporate Income Tax Declaration have been updated
        

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The resolution, which updated the conditions for the purchase of foreign currency by companies, came into force on 21.02.2024.

Key aspects:

• stipulates that from 21.02.2024, for purchase of foreign currency by companies, banks will take into account not only the foreign currency funds on current and deposit bank accounts of such companies but also information on unfinished foreign exchange swap transactions between such companies and their banks, where the first leg of the transactions (sale of foreign currency to the banks) were completed;
• emphasizes that on the date of purchase of foreign currency, companies should additionally provide the bank with information on the foreign currency they sold in the first leg of the foreign exchange swap transactions as part of unfinished deals with banks;
• clarifies that banks may complete currency supervision over export transactions in case of receiving funds from non-residents in foreign currency, while transfers in hryvnia do not constitute grounds for the bank to complete currency supervision.

Source: Resolution of the Board of the National Bank of Ukraine of 20.02.2024 No. 24 "On Amendments to the Resolution of the Board of the National Bank of Ukraine of 24.02.2022 No. 18 "On the Operation of the Banking System during the Period of Martial Law".

Starting from 21.02.2024, using electronic accounts in the Electronic Court is mandatory for all companies of private ownership involved in civil and administrative proceedings.

However, this obligation does not apply to foreign companies operating in Ukraine through their representative offices, as well as to the representative offices.

Key aspects:

• electronic accounts allow exchanging (sending and receiving) documents (including procedural documents, written and electronic evidence) not only between the court and the parties of the proceedings but also between the parties of the proceedings;
• in case of non-fulfilment of this obligation, courts may apply negative procedural actions to companies in the form of leaving the procedural document without movement, without consideration or returning them.

Source: The Law of Ukraine of 29.06.2023 "On Amendments to Certain Legislative Acts of Ukraine on Mandatory Registration and Use of Electronic Offices in the Unified Judicial Information and Telecommunication System or its Separate Subsystem (Module) Ensuring Document Exchange".

Reporting on controlled transactions for 2023 is required using the updated Forms. On 06.02.2024, the order of the Ministry of Finance of Ukraine came into force amending the regulatory legal acts related to transfer pricing.

Key aspects:

• updated the Form and the Procedure of Preparation of the Report on Controlled Transactions approved by the Order of the Ministry of Finance of 18.01.2016 No. 8;
• updated the Form in the Annex TP to the Corporate Income Tax Declaration approved by the Order of the Ministry of Finance of Ukraine of 20.10.2015 No. 897.

The updated forms will allow for more detailed disclosure of information on controlled transactions and taxpayers' self-corrections of the tax base. As a result, the number of requests from the tax authorities to obtain information on the completeness of the disclosure of controlled transactions shall be reduced.

Source: Order of the Ministry of Finance of Ukraine of 07.12.2023 No. 673 "On Amendments to Certain Regulatory Acts of the Ministry of Finance of Ukraine" (as amended by Order of the Ministry of Finance of Ukraine of 27.12.2023 No. 725).