On June 25, 2021 draft law No. 5155 "On Amendments to Article 16 of the Law of Ukraine "On Currency and Currency Transactions" in connection with Amendments to the Tax Code of Ukraine on Stimulation of the Determination of Income and Improvement of the Tax Culture of Citizens by Voluntary Declaration of Assets Due to Individuals and Payment of a Single Fee to the Budget", which introduces necessary changes to the Tax Code of Ukraine for tax amnesty, was returned with the signature of the President.
The amendments establish the possibility, in the period from September 1, 2021, to September 1, 2022, for individuals to conduct a one-time (special) voluntary declaration of their assets for which they have not previously paid taxes. This will allow for a campaign on a voluntary one-time (special) voluntary declaration of assets of individuals with the provision of state guarantees in terms of exemption from administrative and criminal liability of declarers for failure to pay taxes and fees on income which became the source of origin of such assets, and/or their failure to declare in violation of tax and currency legislation in payment of the fee from the one-time (special) voluntary declaration
According to the norms of the draft law, individuals residents, including self-employed persons, as well as individuals who are not residents of Ukraine, but were residents at the time of receipt of objects of declaration or at the moment of accrual (receipt) of income from which objects of the declaration were purchased, may use the voluntary declaration.
The amount of the fee is differentiated according to the content of the assets:
- 5% - the general rate on currency valuables placed in bank accounts in Ukraine.
- 6% - in case of payment of the abovementioned fee in three equal annual instalments.
- 9% - for currency valuables placed in accounts in foreign banks or kept in foreign financial institutions
- 11.5% - in case of payment of the abovementioned fee in three equal annual instalments.
- 2,5% - for the nominal value of Ukrainian government bonds with a maturity of more than one year without the right of early redemption purchased by the declarant in the period from September 1, 2021, to August 31, 2022, prior to the submission of a voluntary declaration
- 3% - in case of payment of the abovementioned fee in three equal annual instalments.
It should be noted that persons who could but did not take advantage of the tax amnesty will be considered as those who reported to the supervisory authority about the lack of ownership of assets subject to declaration and the corresponding fee payment.
The law provides for an exception in the circle of persons who can benefit from the relevant amnesty, viz:
- Minors or incapacitated persons in full custody;
- Persons who, for any period starting from January 1, 2010, perform or have performed public functions in Ukraine, i.e., high-ranking officials and people's deputies
- Persons against whom Ukraine has imposed sanctions.
