What documents are bases for determination of costs for the purchase (acquisition) of securities or financial instruments in order to complete Section IX of the one-time (special) voluntary declaration?
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 – TCU) stipulates that objects of the one-time (special) voluntary declaration (hereinafter – Declaration) 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.
Sub-paragraph 7.2 Paragraph 7 Sub-section 94 Section XX “Transitional Provisions” of the TCU stipulates that levy’s accrual base for declaration objects specified in Sub-paragraph “f” Sub-section 94 Section XX “Transitional Provisions” of the TCU is determined as:
purchase price or exchange value, valid as of the date of submission of Declaration, corporate rights (shares) admitted to the exchange trading;
declarant’s expenditures for the purchase (acquisition) of securities and other financial instruments that are not admitted to exchange trading, as well as shares (units) in the property of legal entities or in entities without such status, other corporate rights or the nominal value of such assets specified in the relevant documents.
Declarant is obliged to document value (cost) of declaration objects by adding duly certified copies of documents confirming the value (cost) of declaration objects to the one-time (special) voluntary declaration, if such objects are (registered) outside Ukraine.
Eleventh paragraph of Article 1 of the Law of Ukraine as of 16.07.1999 № 996-XIV “On accounting and financial reporting in Ukraine” with changes and amendments (hereinafter – Law № 996) stipulates that primary document is a document containing information about business operation.
List of mandatory requisites that primary documents must contain is defined in Part 2 Article 9 of the Law № 996.
Sub-paragraph 170.2.2 Paragraph 170.2 Article 170 of the TCU determines that the documentary evidence (primary document) of income and expenses on operations with investment assets concluded in electronic form on the stock exchange for clients – participants of the stock exchange is recognized as a report of securities trader (broker), which is formed on the basis of an exchange report and contract brokerage services.
Declaration form and Procedure for submitting the one-time (special) voluntary declaration were approved by Order of the Ministry of Finance of Ukraine as of 02.08.2021 № 439.
To submit the Declaration, an individual must enter the E-cabinet, which can be accessed at: https://cabinet.tax.gov.ua, as well as through the official web portal of the State Tax Service and select menu “EC for citizens”, section “One-time (special) voluntary declaration”.
Section IX “Securities or financial instruments” of Declaration contains field “Purchase (acquisition) costs or nominal value”, which reflects declarant’s costs for the purchase (acquisition) of securities and other financial instruments or the nominal value of such assets specified in relevant documents.
Given the above specified, filling in Section IX “Securities or financial instruments” of Declaration, the purchase (acquisition) costs of securities or financial instruments are determined on the basis of relevant supporting documents, which may be: securities trader’s (broker’s) reports; custodian statements for each order, certified by the custodians’ seals; settlement documents (payment orders, cash orders, etc.), as well as other primary accounting documents.
