What levy rate for the one-time (special) voluntary declaration is applied to the value of government bonds of Ukraine with a maturity of more than 365 days ...?

Press service of the State Tax Service of Ukraine, published 09 November 2021 at 14:52 Chapter: News

What levy rate for the one-time (special) voluntary declaration is applied to the value of government bonds of Ukraine with a maturity of more than 365 days without early redemption, which were purchased before 01.09.2021 at the expense of funds from which taxes were not paid?

Paragraph 1 Sub-section 9⁴ Section XX 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 is a special procedure for voluntary individual’s declaration (Paragraph 3 of this Sub-section) of assets located on the territory of Ukraine and / or abroad, if such individual’s assets were received (acquired) at the expense of income that was subject to taxation in Ukraine at the time of their accrual (receipt) and from which taxes and levies were not paid or not in full amount according to requirements of tax legislation and / or international agreements, consent to the binding nature of which is provided by the Verkhovna Rada of Ukraine, and / or which were not declared in violation of tax and currency legislation, control of which is entrusted to the supervisory authorities during any of the tax periods that took place before 01.01.2021.

Sub-paragraph 5.5 Paragraph 2 Article 8 of the Law of Ukraine as of 23.02.2006 № 3480-IV “On capital markets and organized commodity markets” with changes and amendments (hereinafter – Law № 3480) stipulates that government bonds of Ukraine belong to securities.

Herewith, government bonds of Ukraine are divided into bonds of domestic government loans of Ukraine and bonds of external government loans of Ukraine (Paragraph 2 Article 16 of the Law № 3480).

Sub-paragraph “e” Sub-section 9⁴ Section XX of the TCU and Sub-paragraphs 14.1.280, 14.1.281 Paragraph 14.1 Article 14 of the TCU stipulate that objects of the one-time (special) voluntary declaration may be individual’s assets owned by the declarant (including joint partial or joint common ownership right) and are (registered, in circulation, registered, etc.) on the territory of Ukraine and / or abroad as of the date of submission of one-time (special) voluntary declaration, including but not limited to securities and / or financial instruments specified by law.

Sub-paragraph 8.1 Paragraph 8 Sub-section 9⁴ Section XX “Transitional Provisions” of the TCU stipulates that in relation to declaration objects defined by Sub-paragraph “e” Sub-section 9⁴ Section XX “Transitional provisions” of the TCU located (registered) in Ukraine, the 5% rate is applied except for those that are taxed at the rate specified in Sub-paragraph 8.3 Paragraph 8 Sub-section 9⁴ Section XX “Transitional provisions” of the TCU.

Alternatively, the taxpayer may choose the 6% rate with payment of tax liability in three equal parts annually.

Sub-paragraph 8.2 Paragraph 8 Sub-section 9⁴ Section XX “Transitional Provisions” of the TCU stipulates that in relation to declaration objects defined by Sub-paragraph “e” Sub-section 9⁴ Section XX “Transitional provisions” of the TCU located (registered) abroad, the rate 9% is applied except for those that are taxed at rate specified in Sub-paragraph 8.3 Paragraph 8 s Sub-section 9⁴ Section XX “Transitional provisions” of the TCU.

Alternatively, the taxpayer may choose rate of 11.5% with payment of tax liability in three equal parts annually.

At the same time, temporarily from 01.09.2021 to 01.03.2022, the levy rate for one-time (special) voluntary declaration, determined by Sub-paragraph 8.2 Paragraph 8 Sub-section 9⁴ Section XX “Transitional Provisions” of the TCU, is applicable at 7% rate (Paragraph 19 Sub-section 9 Copy 4 Section XX “Transitional Provisions” of the TCU).

Alternatively, the taxpayer may choose rate of 9.5% with payment of tax liability in three equal parts annually.

At the same time, Sub-paragraph 8.3 Paragraph 8 Sub-section 9⁴ Section XX “Transitional Provisions” of the TCU stipulates that the nominal value of government bonds of Ukraine with a maturity of more than 365 days without early redemption, purchased by the declarant in a period from 01.09.2021 to 31.08.2022 before submission of the one-time (special) voluntary declaration is taxed at 2.5% rate.

As follows, levy rates for object of the one-time (special) voluntary declaration in the form of securities (government bonds of Ukraine) are applied in the following amounts:

5% rate if such bonds are (registered) in Ukraine.

Alternatively, the taxpayer may choose the 6% rate with payment of tax liability in three equal parts annually.

9% rate if such bonds are (registered) abroad.

Alternatively, the taxpayer may choose rate of 11.5% with payment of tax liability in three equal parts annually. Temporarily from 01.09.2021 to 01.03.2022, the levy rate for one-time (special) voluntary declaration is applicable at 7% rate. Alternatively, the taxpayer may choose rate of 9.5% with payment of tax liability in three equal parts annually.

In addition, the nominal value of government bonds of Ukraine with a maturity of more than 365 days without early redemption, purchased by the declarant in a period from 01.09.2021 to 31.08.2022 before submission of the one-time (special) voluntary declaration is taxed at 2.5% rate.