What value should be indicated by an individual in the one-time (special) voluntary declaration in case of declaring securities that are admitted to stock exchange trading and located outside the territory of Ukraine?

According to Sub-paragraph “f” of Paragraph 4 Sub-section 9⁴  Section XX “Transitional Provisions” of the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – the TCU), objects of the one-time (special) voluntary declaration (hereinafter – the declaration objects), defined in Sub-paragraph 14.1.280 and 14.1.281 of Paragraph 14.1 Article 14 of the TCU, are individual’s assets belonging to declarant on the ownership right (including the joint partial right or common joint ownership right) and are (accounted, in turnover, registered, etc.) on the territory of Ukraine and / or abroad as of the date of submission of the one-time (special) voluntary declaration, including securities and / or financial instruments specified by law;

In this case, the declarant is obliged to document monetary value of the declaration objects, defined by Sub-paragraph “f” Paragraph 4 Sub-section 9⁴Section XX of the TCU; basis for calculating levy for the one-time (special) voluntary declaration is the purchase price or exchange cost valid as of the date of submission of the one-time (special) voluntary declaration, corporate rights (shares) admitted to exchange traders for calculation of levy for the one-time (special) voluntary declaration by adding duly certified copies of documents confirming value of the declaration objects to the one-time (special) voluntary declaration. Declarant is obliged to document value of declaration objects by adding duly certified copies of documents confirming the value of declaration objects to the one-time (special) voluntary declaration, if such objects are (registered) outside Ukraine (Sub-paragraph 7.2 Paragraph 7 Sub-section 9⁴  Section XX of the TCU).

First paragraph of Paragraph 6 Sub-section 9⁴Section XX of the TCU stipulates that declarant who intends to use the one-time (special) voluntary declaration of the individual’s  assets belonging to him / her, during the period of one-time (special) voluntary declaration defined by Sub-section 9⁴Section XX of the TCU has right to voluntarily submit the one-time (special) voluntary declaration to the central executive body implementing tax policy in manner and form established by the central executive body that ensures the formation and implementation of public financial policy.

Order of the Ministry of Finance of Ukraine as of 02.08.2021 № 439 approved the Form of one-time (special) voluntary declaration and Procedure for its submission.

In addition, according to Sub-paragraph 6.1 Paragraph 6 Sub-section 9⁴Section XX of the TCU for purposes of Sub-section 9⁴Section XX of the TCU, the one-time (special) voluntary declaration (hereinafter – the Declaration) is the Declaration in which the following is particularly reflected:

information regarding the declaration objects, defined in Sub-paragraphs “b” – “f” of Paragraph 4 of Sub-section 9⁴Section XX of the TCU, indicating information that allows them to be identified, namely their location or place of storage (except for art objects and antiques, precious metals, precious stones, jewelry, bank metals that are not placed on accounts, commemorative banknotes and coins, etc.), type, name, year of production (issue), etc.;

independently determined by the declarant in national currency basis for calculation of levy for the one-time (special) voluntary declaration. Declarant is obliged to attach copies of documents confirming value of the declaration objects to the Declaration in case of location (registration) of individual’s asset outside Ukraine;

rate and amount of levy for the one-time (special) voluntary declaration.

As follows, an individual who owns asset in the form of securities admitted to exchange trading and placement outside the territory of Ukraine, reflects it in the one-time (special) voluntary declaration indicating the purchase price or exchange cost, which is valid as of the date of submission of the specified declaration. That is, if an individual does not have information on the purchase price of the specified asset, but has its exchange cost which is documented, then an individual indicates exchange cost of such asset in the one-time (special) voluntary declaration.