On July 17, 2015, the Law of Ukraine “On Amendments to the Tax Code of Ukraine regarding the taxation of non-profit organizations” No. 652-VIII (hereinafter referred to as Law No. 652) was adopted.
The adopted Law No. 652 amended a number of regulatory legal acts, in particular, paragraph 35 of subsection 4 of section XX “Transitional Provisions” of the Tax Code of Ukraine (hereinafter referred to as the TCU). According to the above paragraph, all non-profit organizations (enterprises and institutions; hereinafter referred to as “PA”), whose constituent documents do not meet the requirements of paragraph 133.4 of Art. 133 GCC, are obliged to bring their title documents in line, if changes are not made before 01.01.17, such organizations will not be included in the new register of non-profit organizations.
The essence of the changes lies in the presence in the constituent documents of the PA:
- the prohibition to distribute profits between PA members and the existence of provisions that in the event of the PA liquidation, all its assets are not distributed among its founders (members), but transferred to another PA of the corresponding type or transferred to the state’s income.
There is an exception to this provision: the above amendments do not apply to associations and associations of associations of co-owners of apartment buildings. And this means that these changes apply to all other associations, and this is all – public organizations, split, including religious organizations, charitable foundations, political parties, garden associations and many other non-profit organizations.
According to a very rough estimate (I do not pretend to be exact figures) in Ukraine there are about 100,000 unprofitable associations, it can be assumed that the documents of most of them lack the above innovations, which in turn guarantees the workload of the competent authorities in the field of making changes to the State Register.
In order to minimize the dissatisfaction of these most unprofitable organizations, the Law No. 652 provided for a privilege in the form of the absence of the need to pay the registration fee for making changes (clause 5, section VIII of the “Final Provisions” of the Law of Ukraine “On State Registration of Legal Entities and Individuals – entrepreneurs ”dated May 15, 2003 No. 755-IV (hereinafter – Law No. 755)).
That is, it is necessary to make changes to the charter, but there is no need to pay for it.
However, the Law of Ukraine “On Amendments to the Law of Ukraine” On State Registration of Legal Entities and Individuals – Entrepreneurs “and some other legislative acts of Ukraine regarding the decentralization of powers for state registration of legal entities, individuals – entrepreneurs and public formations” dated November 26, 2015 … No. 835-VIII (hereinafter referred to as Law No. 835) Law No. 755 was revised, as a result of which, either due to negligence or cold calculation of the legislator, the privilege disappeared.
In addition, since January 2016, Law No. 835 changed the amount of payment for making changes for legal entities and non-profit organizations from 0.05 of the minimum wage (68.90 UAH) to 0.3 of the minimum wage (413.40 UAH ).
Let me remind you that paragraph 35 of subsection 4 of section XX “Transitional Provisions” of the GCC set a period during which changes must be made to the title documents – until 01.01.2017, if this is not done, then non-profit organizations will cease to be such.
Today it turns out that one law is obliged to amend the constituent documents of a non-profit organization, while the other abolishes the privilege and introduces a considerable duty for making changes.
As a result, the situation will turn out that by the end of the year the state budget will be replenished by:
413, 40 UAH – fee for making changes to the register in the amount multiplied by 100,000 non-profit organizations, whose constituent documents, most likely, do not correspond to the innovations, multiply
We get an approximate amount of UAH 413,400,000.
It is for this amount that the State Budget of Ukraine should be replenished, and as you understand, this amount will be included in the amount of the membership fee, like this, with “the world on a string” and millions to the state budget.
Therefore, I had a question: what is it – negligence or cold calculation of the legislator?