Purchasing which types of government bonds, there is 2.5% levy rate for the one-time (special) voluntary declaration?
First paragraph of Sub-paragraph 8.3 Paragraph 8 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 amount of levy for the one-time (special) voluntary declaration (hereinafter – levy) for declared objects is determined by applying the 2.5% rate to levy’s accrual base, determined according to Paragraph 7 of Sub-section 94 Section XX “Transitional Provisions” of the TCU, concerning the nominal value of government bonds of Ukraine with a maturity of more than 365 days without the early redemption right, purchased by the declarant in a period from 01.09.2021 to 31.08.2022 before submitting the one-time (special) voluntary declaration (hereinafter – Declaration).
Alternatively, the taxpayer may choose the 3% rate with payment of tax liability in three equal parts annually (Second paragraph of Sub-paragraph 8.3 Paragraph 8 s Sub-section 94 Section XX “Transitional provisions” of the TCU).
Paragraph 1 Article 16 of the Law of Ukraine as of 23.02.2006 № 3480-IV “On Capital Markets and Organized Commodity Markets” (as amended by the Law of Ukraine as of 19.06.2020 № 738-IX) (hereinafter – the Law № 3480) government bonds of Ukraine may be:
1) long-term – with a maturity of more than five years;
2) medium-term – with a maturity of one to five years;
3) short-term – with a maturity of up to one year.
Paragraph 2 of the Law № 3480 provides that government bonds of Ukraine are divided into domestic government bonds of Ukraine and foreign government bonds of Ukraine.
As follows, when the declarant purchases medium-term and / or long-term government bonds of Ukraine without the early redemption right, in a period from 01.09.2021 to 31.08.2022 before the submission of Declaration, there is applicable 2.5% rate.
