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Changes to the Tax Code Regarding Payment Services and Their Providers Have Entered Into Force
On April 1, 2023, Law No. 2888-IX “On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine Regarding Payment Services” entered into force, amending the Tax Code.
1) The following concepts have been brought into line with the requirements of Law No. 1591-IX “On Payment Services”: “banks”, “non-bank payment service provider”, “electronic wallet of an electronic money issuer”, “payment instructions”, “bank account/non-bank provider of payment services”.
2) New requirements for opening and closing taxpayer accounts in banks, other financial institutions, non-bank payment service providers and electronic wallets in electronic money issuers, features of reporting on accountable accounts/electronic wallets (Article 69 of the TCU) have been introduced.
3) The possibility of using not only accounts opened in banks, but also accounts/electronic wallets of such a taxpayer in other financial institutions, non-bank providers of payment services/issuers of electronic money during settlement operations and monitoring their implementation has been introduced.
4) The procedure for using a single account has been changed (Articles 35, 35-1 of the TCU). It is separately determined that for the purposes of the Code, the taxpayer’s obligation to pay taxes and fees to a single account, defined by Article 35-1 of the Code, is considered fulfilled from the moment when the initiation of the transfer is completed for such a taxpayer in accordance with the Law “On Payment Services” . Moreover, clause 35-1.1 of the Code is supplemented by a new norm that it is not allowed to accept electronic money on a single account.
5) The supervisory authority is given the opportunity to use information received not only from banks and other financial institutions, but also from non-bank payment service providers and electronic money issuers about the availability and movement of funds in the taxpayer’s accounts, reports on accountable accounts submitted by financial agents, information on the availability and movement of funds in the taxpayer’s electronic wallets.
6) The list of subjects of information relations has been expanded (Articles 72, 73 of the TCU) with providers of non-bank payment services, issuers of electronic money.
Information at the request of the supervisory body is provided by the National Bank of Ukraine, banks, other financial institutions, non-bank payment service providers, issuers of electronic money free of charge in the manner and scope established by the laws of Ukraine “On Banks and Banking” and “On Payment Services”.
7) Changes have been made regarding the financial responsibility of non-bank providers of payment services, acquirers, issuers of electronic money (Articles 112, 118, 124 of the TCU).
Thus, spending transactions on the account/electronic wallet of the taxpayer before receiving a notification from the relevant supervisory body about registering the account with the supervisory bodies entails the imposition of a fine of 10 percent on the bank, other financial institution, non-bank payment service provider, issuer of electronic money in the amount of all transactions for the entire period before receiving such a notification, carried out using such accounts (except for transactions on transferring funds to budgets or state special funds), but not less than UAH 1,700.