On 9-10 July the State Tax Service of Ukraine announced 19 Orders that approve generalized tax clarifications for certain tax issues:

• On application of the simplified system of taxation, accounting and reporting by private entrepreneurs that engage in production and sale of jewelry.
  Order of the STS of Ukraine of 6 July 2012 No.596
• On accounting of investment losses incurred by individuals when the tax agent determines the total financial result from investment asset transactions.
  Order of the STS of Ukraine of 6 July 2012 No.595
• On taxation of income in the form of investment profit earned by an individual taxpayer from security (share) transactions and paid by a professional broker (dealer transactions on securities sale and purchase).
  Order of the STS of Ukraine of 6 July 2012 No.594
• On the filing by the professional broker of tax return for incomes accrued (paid) to taxpayers and the amount of withheld taxes. Order of the STS of Ukraine of 6 July 2012 No.593
• On certain issues of financial sanctions applied for violation of the Tax Code.
  Order of the STS of Ukraine of 6 July 2012 No.592
• On certain issues of arranging and conducting the tax authorities' reviews.
  Order of the STS of Ukraine of 6 July 2012 No.591
• On certain issues of mandatory VAT registration.
  Order of the STS of Ukraine of 6 July 2012 No.588
• On determination of the amount of tax relief from profit tax exemption.
  Order of the STS of Ukraine of 5 July 2012 No.584
• On using bank statements as supporting documents.
  Order of the STS of Ukraine of 5 July 2012 No.583
• On taxation of profit earned from joint activity (without establishment of a legal entity) within the territory of Ukraine. Order of the STS of Ukraine of 5 July 2012 No.582
• On determination of income and deductible expenses from free-of-charge supply of goods (works, services).
  Order of the STS of Ukraine of 5 July 2012 No.581
• On deduction of expenses incurred before 1 January 2012 from transactions with entrepreneurs paying the single tax. Order of the STS of Ukraine of 5 July 2012 No.580
• On taxation of profit earned from security transactions on the secondary market. Order of the STS of Ukraine of 5 July 2012 No.579
• On 0% tax rate application by corporate profit tax payers.
  Order of the STS of Ukraine of 5 July 2012 No.578
• On deduction of expenses from activities not specified in the charter.
  Order of the STS of Ukraine of 5 July 2012 No.577
• On writing off accounts payable for non-remunerated goods.
  Order of the STS of Ukraine of 5 July 2012 No.576
• On tax losses carry-forward.
  Order of the STS of Ukraine of 5 July 2012 No.575 (for more details please refer to the Tax and Legal Newsletter of 10 July 2012)
• On determination of FOREX differences from transactions in foreign currency, indebtedness and foreign currency. Order of the STS of Ukraine of 5 July 2012 No.574
• On accounting of material assets and securities contributed to the charter capital of the taxpayer.
  Order of the STS of Ukraine of 5 July 2012 No.573

We will continue to follow the changes in legislation and keep you informed on further developments.

Contacts at Ernst & Young:

Vladimir Kotenko
+380 (44) 490 3006
Vladimir.Kotenko@ua.ey.com

Jorge Intriago
+380 (44) 490 3003
Jorge.Intriago@ua.ey.com

Igor Chufarov
+380 (44) 492 8231
Igor.Chufarov@ua.ey.com