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What is the basis for calculating levy for the one-time (special) voluntary declaration if an individual is owner of a valuable watch and expensive weapons?

published 24 September 2021 at 14:56

According to Sub-paragraph “g” Sub-section 94 Section XX the Tax Code of Ukraine (hereinafter – 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 other individual’s assets, including property.

Sub-paragraph 7.2 Paragraph 7 Sub-section 94 Section XX “Transitional Provisions” of the Code stipulates that according to Sub-paragraphs “b” – “g” Paragraph 4 Sub-section 94 Section XX of the Code) the levy’s accrual base for specified declaration objects in the one-time (special) voluntary declaration is determined, in particular, but not exclusively, as:

- declarant’s expenditures for the purchase (acquisition) of declaration object;

- cost determined on the basis of property and property rights evaluation, financial instruments and other assets. Evaluation of the declaration object is carried out in compliance with laws of the country where such asset is located. Value of assets, determined in foreign currency, is reflected in the one-time (special) voluntary declaration in UAH at the official exchange rate of national currency set by the National Bank of Ukraine as of the date of submission of one-time (special) voluntary declaration.

Given the above specified, if an individual is owner of a valuable watch and expensive weapons purchased at the expense of funds from which taxes were not paid, in such case the basis for calculating levy for the one-time (special) voluntary declaration is the acquisition cost of these assets or their estimated value, ie the basis is determined by the payer independently.