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If an individual owns 405 thousand UAH and expressed wish to declare these funds by submitting the one-time (special) voluntary declaration, what exact amount of these funds individual must declare (the entire amount or only a part of them)?

published 22 September 2021 at 15:25

According to Paragraph 1 Sub-section 94 Section XX of  the Tax Code of Ukraine (hereinafter – the Code), the one-time (special) voluntary declaration is a special procedure for voluntary individual’s declaration (Paragraph 3 of this Sub-section) of assets located on the territory of Ukraine and / or abroad, if such individual’s assets were received (acquired) at the expense of income that was subject to taxation in Ukraine at the time of their accrual (receipt) and from which taxes and fees were not paid or not in full amount according to requirements of tax legislation and / or international agreements, consent to the binding nature of which is provided by the Verkhovna Rada of Ukraine, and / or which were not declared in violation of tax and currency legislation, the control of which is entrusted to the supervisory authorities during any of the tax periods that took place before 01.01.2021.

According to Sub-paragraph “a” Sub-section 94 Section XX of the Code and Sub-paragraphs 14.1.280, 14.1.281 Paragraph 14.1 Article 14 of the Code, objects of the one-time (special) voluntary declaration may be assets of individual owned by the declarant (including joint partial or joint common ownership right) and are (registered, in circulation, registered, etc.) on the territory of Ukraine and / or abroad as of the date of submission of one-time (special) voluntary declaration, particularly currency values (bank metals, except for those not placed on accounts, national currency (UAH), foreign currency, except for cash and monetary claims (including deposit), funds borrowed from third parties for loan agreement) drawn up in writing with a legal entity or notarized in case of the declarant’s claim to another individual.

For purposes of the one-time (special) voluntary declaration, the declarant must place funds in national and foreign currencies in cash and / or bank metals on current accounts with a special regime of use in Ukrainian banks (hereinafter – special accounts) before submitting the one-time (special) voluntary declaration according to Paragraph 9 Sub-section 94 Section XX of the Code.

Declarant in order to ensure compliance with provisions of Paragraph 9 Sub-section 94Section XX “Transitional Provisions” of the TCU applies to the bank to open a special account. Procedure for opening, closing, crediting funds to a special account and exercising control over operations on such account is established by the National Bank of Ukraine.

Herewith, according to Sub-paragraph 1 Paragraph 10 Sub-section 94 Section XX of the Code, the composition and volume of assets, sources of receipt (acquisition) of which in case of individual’s non-use of right to submit the one-time (special) voluntary declaration are considered to be those from which taxes and levies are fully paid under tax legislation and assets, except for those specified in Sub-paragraphs 2 and 3 of Paragraph 10 Sub-section 94  Section XX of the Code, the total value of which does not exceed 400 thousand UAH as of the end of period of the one-time (special) voluntary declaration. If monetary value of such assets is determined in foreign currency / bank metals, their value is indicated in UAH at the official exchange rate of national currency to foreign currency set by the National Bank of Ukraine / accounting price of bank metals calculated by the National Bank of Ukraine on the date of declarant’s submission of declaration.

Given the above specified, if an individual owns 405 thousand UAH and expressed wish to submit the one-time (special) voluntary declaration, such individual makes independent decision on the amount to be indicated in declaration, namely the entire amount of 405 thousand UAH or only a part of these funds. In this case, levy for the one-time (special) voluntary declaration is charged in the general order of amount that will be specified in the declaration.

In addition, in case of individual’s decision not to submit the one-time (special) voluntary declaration, sources of receipt (acquisition) of funds are considered to be those from which taxes and levies are fully paid under tax legislation, if their total value does not exceed 400 thousand UAH as of the end of period of the one-time (special) voluntary declaration.