Who can use one-time (special) voluntary declaration and who cannot be a declarant?
First clause of Paragraph 3 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 the one-time (special) voluntary declaration can be used by resident individuals, including self-employed individuals, as well as individuals who are not residents of Ukraine, but who were residents at the time of receipt (acquisition) of declaration objects or at the time of accrual (receipt) of income, due to which declaration objects were received (acquired) and who are or were taxpayers according to the TCU.
Herewith, definition of an individual as a “resident” for the TCU is regulated by Sub-clause “c” of Sub-paragraph14.1.213 Paragraph 14.1 Article14 of the TCU, according to which: an individual – resident is a person who resides in Ukraine.
If an individual also resides in a foreign state, he / she is considered a resident if such person has a permanent residence in Ukraine; if a person has permanent residence also in a foreign country, he / she is considered a resident if there is closer personal or economic ties (center of vital interests) in Ukraine. If the state where individual has a center of vital interests cannot be determined or if individual does not have a permanent residence in any of the states, he / she is considered a resident if stays in Ukraine for at least 183 days (including the arrival day) and during a period or periods of the tax year.
Sufficient (but not exclusive) condition for determining location of individual’s center of vital interests is a permanent residence place of members of his / her family or registration as a business entity.
If it is impossible to determine individual’s resident status using previous provisions of this Sub-clause, an individual is considered resident if he / she is a citizen of Ukraine.
If, contrary to the law, individual citizen of Ukraine also has a citizenship of another country, for the taxing purposes, such individual is considered a citizen of Ukraine who is not entitled to offset taxes paid abroad under this Code or international agreements of Ukraine.
If individual is a stateless person and provisions of the First to fourth clauses of Sub-clause “c” of Sub-paragraph14.1.213 Paragraph 14.1 Article14 of the TCU are not applicable, his / her status is determined according to international law.
Sufficient basis for determining individual as a resident is his / her independent determination of his / her main residence place on the territory of Ukraine according to procedure established by the TCU, or his / her registration as a self-employed individual.
Second to fourth clauses of Paragraph 3 Sub-section 94 Section XX “Transitional Provisions” of the TCU stipulate that declarants cannot be individuals who as of the date of a period of the one-time (special) voluntary declaration are minors or incapacitated persons and are fully dependent on other persons (including parents) and / or the state, or are individuals whose legal capacity is limited and guardianship / custody is established over such persons.
Declarants cannot be individuals who for any period, starting from 01.01.2010, perform or have performed public functions in Ukraine provided for in Paragraph 37 of Part 1 Article 1 of the Law of Ukraine as of 06.12.2019 № 361-IX “On prevention and counteraction to legalization (money-laundering) of proceeds from crime, terrorist financing and financing the proliferation of weapons of mass destruction”.
Declarants cannot also be individuals in respect of whom Ukraine applied special economic and other restrictive measures (sanctions) according to the Law of Ukraine as of 1.08.2014 № 1644-VII “On sanctions” with changes and amendments.
More information is in the “Knowledge Base” of public information and reference resource
