Oleksiy Lyubchenko: It is necessary to harmonize taxation systems of financial sector and passive income of individuals

Press service of the State Tax Service of Ukraine, published 29 March 2021 at 12:31 Chapter: News

Establishment of a fairer taxation system in Ukraine will be facilitated by the harmonization of taxation systems of financial sector, its instruments and passive income of individuals. This was stated by Chairman of the State Tax Service of Ukraine Oleksiy Lyubchenko in article of edition “Dzerkalo tyzhnya”.

According to him, the “lion’s” share of income of the richest households is provided by passive income, including through their ownership of corporate rights and cash through investment funds. This significantly reduces the effective tax rate for such individuals.

 “This creates opportunities for tax optimization, including through the use of collective investment institutions and also violates principle of fair taxation for all participants in the financial sector and financial instruments. In view of this, it is necessary to bring rates of the personal income tax received from dividends or operations with securities (including certificates of investment funds) to level of the standard rate of personal income tax.” – assured Oleksiy Lyubchenko. 

According to him, this will restore healthy proportions of the personal income taxation and savings, reduce tax inequality, as a result of which the poorer sections of population pay more taxes (relative to their income level) than the rich.

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