What are the levy rates for the one-time (special) voluntary declaration?

According to Paragraph 8 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – the TCU), the amount of levy for one-time (special) voluntary declaration (hereinafter – the Levy) for declared objects is determined by applying to Levy’s accrual base the following rates, determined according to Paragraph 7 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU:

8.1.Rate of 5%:

on currency values placed on bank accounts in Ukraine in compliance with requirements of Paragraph 9 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU and on the monetary claim right towards residents of Ukraine, identified in Sub-paragraph “a” of Paragraph 4 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU;

on the declaration objects defined in Sub-paragraphs “b” – “f” of Paragraph 4 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU that are located (registered) in Ukraine, except for those that are taxed at the rate specified in Sub-paragraph 8.3 Paragraph 8 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU.

Declarant’s funds in national and foreign currencies, bank metals must be placed on accounts in banks of Ukraine for the one-time (special) voluntary declaration for application of the Levy rate on a date of submission of the one-time (special) voluntary declaration (hereinafter – the Declaration) provided in Sub-paragraph 8.1 Paragraph 8 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU.

Alternatively, the taxpayer may choose rate of 6% with payment of tax liability in three equal parts annually.

Herewith, Sub-paragraphs “b” – “f” of Paragraph 4 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU define that objects of the one-time (special) voluntary declaration cannot be the following assets:

b) real estate (land, residential and non-residential real estate).

For purposes of this Sub-section, the real estate also includes objects of unfinished construction, which:

are not taken into operation or the ownership right of which is not registered in a manner prescribed by law, but property rights on such objects belong to declarant on the ownership right;

are not put into operation and located on land plots belonging to declarant on the private property right, including joint property or on the long-term lease right or on the superficies right;

c) movable property, including:

vehicles and other self-propelled machines and mechanisms;

other valuable movable property (art and antiques, precious metals, precious stones, jewelry, etc.)

d) shares (units) in the property of legal entities or in entities without such status, other corporate rights, property rights to intellectual property;

e) securities and / or financial instruments specified by law;

e) right to receive dividends, interest or other similar property benefits not related to the ownership of securities, shares (units) in the property of legal entities and / or entities without such status;

f) other individual’s assets, including property, bank metals not placed on accounts, commemorative banknotes and coins, property rights belonging to the declarant or from which the declarant receives or has right to receive income under the property management agreement or other similar operation and does not pay the owner of such property part of income due to the owner.

8.2.Rate of 9%:

on currency values placed on accounts in foreign banks or stored in foreign financial institutions and on the monetary claim right against the non-residents of Ukraine determined in Sub-paragraph “a” of Paragraph 4 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU;

on the declaration objects, determined by Sub-paragraphs “b” – “f” of Paragraph 4 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU which are (registered) abroad, except for those that are taxed at the rate specified in Sub-paragraph 8.3 Paragraph 8 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU.

Sub-paragraph 8.3 Paragraph 8 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU determine that for the one-time (special) voluntary declaration to apply the Levy rates, the declarant’s funds in foreign currency must be placed on accounts in banks and / or other financial institutions abroad on the date of submission of the Declaration.

Alternatively, the taxpayer may choose rate of 11.5% with payment of tax liability in three equal parts annually.

8.3.Rate of 2.5%:

on the nominal cost of government bonds of Ukraine with a circulation period of more than 365 days without right for early repayment, purchased by the declarant in a period from 01.09.2021 to 31.08.2022 prior to submission of the one-time (special) voluntary declaration.

Alternatively, the taxpayer may choose rate of 3% with payment of tax liability in three equal parts annually.

At the same time, according to Paragraph 19 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU, temporarily from 01.09.2021 to 01.03.2022, the Levy rate for one-time (special) voluntary declaration is applicable at 7% defined by  Sub-paragraph 8.2 Paragraph 8 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU.

Alternatively, the taxpayer may choose rate of 9.5% with payment of tax liability in three equal parts annually.