What are levy rates for the one-time (special) voluntary declaration?
Press service of the State Tax Service of Ukraine , published 20 December 2021 at 13:51 Chapter: News
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 declaration objects is determined by applying to Levy’s accrual base the following rates, determined according to Paragraph 7 Sub-section 94 Section XX “Transitional Provisions” of the TCU:
8.1. Rate 5% for currency values placed on bank accounts in Ukraine in compliance with requirements of Paragraph 9 Sub-section 94 Section XX "Transitional Provisions" of the TCU and for the monetary claim against residents of Ukraine, specified in Sub-paragraph “a” Paragraph 4 Sub-section 94 Section XX “Transitional Provisions” of the TCU;
for declaration objects, specified in Sub-paragraphs “b” – “g” Paragraph 4 Sub-section 94 Section XX “Transitional Provisions” of the TCU, which are (registered) in Ukraine, except for those that are taxed at rate specified in Sub-paragraph 8.3 Paragraph 8 Sub-section 94 Section “Transitional Provisions” of the TCU;
declarant’s funds in national and foreign currencies and bank metals must be placed on accounts of Ukrainian banks for purposes of the one-time (special) voluntary declaration for application of Levy rate on the date of submission of the one-time (special) voluntary declaration (hereinafter – Declaration), specified in Sub-paragraph 8.1 Paragraph 8 Sub-section 94 Section “Transitional Provisions” of the TCU.
Alternatively, the taxpayer may choose 6% rate with payment of tax liability in three equal parts annually.
Herewith, Sub-paragraphs “b” – “g” Paragraph 4 Sub-section 94 Section XX "Transitional Provisions" of the TCU stipulate that the following assets are declaration objects of the one-time (special) voluntary declaration:
b) real estate (land, residential and non-residential real estate).
For purposes Sub-section 94 Section XX “Transitional Provisions” of the TCU, real estate also includes objects of unfinished construction, which:
are not taken into operation or the ownership right of which is not registered in a manner prescribed by law, but property rights on such objects belong to declarant on the ownership right;
are not put into operation and located on land plots belonging to declarant on the private property right, including joint property, on the long-term lease right or on the superficies right.
c) movable property, including:
vehicles and other self-propelled machines and mechanisms;
other valuable movable property (art and antiques, precious metals, precious stones, jewelry, etc.);
d) shares (units) in property of legal entities or in entities without the legal entity’s status, other corporate rights, property rights to intellectual property;
e) securities and / or financial instruments specified by law;
f) right to receive dividends, interest or other similar property benefits not related to the ownership of securities, shares (units) in property of legal entities and / or in entities without the legal entity’s status;
g) other individual’s assets, including property, bank metals not placed on accounts, commemorative banknotes and coins, property rights belonging to declarant or from which the declarant receives or has right to receive income under the property management agreement or other similar operation and does not pay part of income to the owner of such property.
8.2. Rate 9% for currency values placed on accounts in foreign banks or stored in foreign financial institutions and for monetary claim right against non-residents of Ukraine, specified in Sub-paragraph “a” Paragraph 4 Sub-section 94 Section XX “Transitional Provisions” of the TCU;
for declaration objects, specified in Sub-paragraphs “b” – “g” Paragraph 4 Sub-section 94 Section XX "Transitional Provisions" of the TCU, located (registered) abroad, except for those that are taxed at rate specified in Sub-paragraph 8.3 Paragraph 8 Sub-section 94 Section “Transitional Provisions” of the TCU.
Declarant’s funds in foreign currency on the date of submission of the Declaration must be placed on accounts of banks and / or other financial institutions abroad for purposes of the one-time (special) voluntary declaration for application of Levy rate provided for in Sub-paragraph 8.2 Paragraph 8 Sub-section 94 Section “Transitional Provisions” of the TCU.
Alternatively, the taxpayer may choose 11.5% rate with payment of tax liability in three equal parts annually.
8.3 Rate 2.5% for 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 September 1, 2021 to August 31, 2022 before submitting the one-time (special) voluntary declaration.
Alternatively, the taxpayer may choose 3% rate with payment of tax liability in three equal parts annually.
At the same time, Paragraph 19 Sub-section 94 Section XX "Transitional Provisions" of the TCU stipulates that temporarily from September 1, 2021 to March 1, 2022, the Levy rate, specified in Sub-paragraph 8.2 Paragraph 8 Sub-section 94 Section XX "Transitional Provisions" of the TCU, is applicable at 7% rate.
More information is in the “Knowledge Base” of public information and reference resource.