Does a resident – individual have right to submit the one-time (special) voluntary declaration and declare asset in the form of monetary claim under a loan agreement provided to another individual at the expense of funds (in national or foreign currency) from which taxes were not paid in tax periods until 01.01.2021?
Paragraph 1 Sub-section 94 Section XX “Transitional provisions” of the Tax Code of Ukraine (hereinafter – Code) stipulates that the one-time (special) voluntary declaration is a special procedure for voluntary individual’s declaration of assets located on the territory of Ukraine and / or abroad, determined in Paragraph 3 Sub-section 94 Section XX of the Code, if such individual’s assets were received (acquired) at the expense of income subject to taxation at the time of their accrual (receipt) in Ukraine and from which taxes and levies were not paid or not in full amount according to legislative requirements on taxation and / or international agreements, binding nature of which was approved by the Verkhovna Rada of Ukraine and / or which were not declared in violation of tax and currency legislation, control over compliance with which is entrusted to the controlling bodies during any of the tax periods that occurred before 01.01.2021.
At the same time, Sub-paragraph “a” Sub-section 94 Section XX “Transitional provisions” of the Code and Sub-paragraph 14.1.280 and 14.1.281 Paragraph 14.1 Article 14 of the Code stipulate that objects of the one-time (special) voluntary declaration may be assets of individual 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 the one-time (special) voluntary declaration including currency values (bank metals, except for those not placed on accounts, national currency (UAH) and foreign currency, except for cash and monetary claims (including deposit), funds borrowed from third parties for loan agreement) compiled in writing form with a legal entity or notarized in case of the declarant’s right claim against another individual.
Sub-paragraph 7.1 Paragraph 7 Sub-section 94 Section XX “Transitional provisions” of the Code provides that for declaration objects, defined in Sub-paragraph “a” Sub-section 94 Section XX "Transitional provisions" of the Code, basis for accrual of levy for the one-time (special) voluntary declaration is monetary cost of the corresponding declaration object or the nominal cost of monetary claims, including for loans granted to third parties. If such monetary cost is determined in a foreign currency, cost of such currency values is indicated in UAH at the official exchange rate of the national currency to the corresponding type of currency values determined by the National Bank of Ukraine as of the date of submission of the one-time (special) voluntary declaration. If such monetary cost is determined in the form of bank metals, cost of bank metals is indicated basing on the weight and accounting price of bank metals calculated by the National Bank of Ukraine as of the date of declarant’s submission of the one-time (special) voluntary declaration.
Declarant is obliged to document monetary cost of such objects for the levy’s calculation and accrual for the one-time (special) voluntary declaration by attaching duly certified copies of documents confirming cost of declaration objects to the one-time (special) voluntary declaration.
Given the above specified, if individual – resident who owns asset in the form of a monetary claim (funds borrowed from third parties under a loan agreement), which is notarized, may voluntarily declare asset by submitting the one-time (special) voluntary declaration.