“Prikhodko & Partners“ Law Firm points out that there are a few days left until the end of 2020, which indicates that businesses should pay attention to the schedule of non-cash payments by banking institutions. This is extremely important. Why? That’s what we’ll focus on a little further.
The National Bank of Ukraine (NBU) by Resolution of the Board № 159 approved the regulations of the electronic payment system and the procedure of the banking system for the end of December 2020.
The specified resolution established that:
- On December 30, 2020, the banking system as a whole operates in the normal mode with some features. For example, payments in foreign currency from the Treasury are made until 16:00.
- On December 31, 2020, payments between banking institutions subordinated to one legal entity are made by 13:00 through the electronic payment system. This indicates that payments between banking institutions subordinated to different legal entities are not made. Therefore, such payments will be made by the bank only on January 4, 2021.
In addition, it should be emphasized that December 25, 26, 27 are 2020 as days off, and therefore payments between different banking institutions will be made only on December 28, 2020. In addition, bank payments by online banking systems within one bank will still be carried out.
So why make timely payments and pay attention to working and banking days?
I) it should not be forgotten that on December 31, 2020 the reporting tax year for business entities under the simplified taxation system ends. Therefore, only before the above date it is possible to make payments to accounts that will be written off in 2020 and will relate to the costs in the reporting documentation. The important thing is that the object of taxation in the general system is profit (ie income minus expenses). The rate is 18%, and therefore irrational spending can have a negative financial impact on the financial condition of your business.
II) it is worth remembering that most business contracts state that the date of payment is the date of crediting the funds to the bank current account of the recipient of such funds (eg supplier). Therefore, making a payment on a weekend or non-bank day will lead to a situation of processing the payment a few days later from the date of sending it by the payer. Accordingly, if the contract contains a provision on the application of a fine or penalty, it will be the basis for the relevant claims activities of your counterparty.
Therefore, we draw attention to the importance of the above provisions.
“Prikhodko & Partners“ Law Firm provides comprehensive legal and accounting support for business; in addition, our specialists specialize in tax consulting services. If you have additional questions or need legal services – please contact us, we will be happy to help you.