On 21 July 2021, Law of Ukraine “On Amendments to Tax Code of Ukraine and Other Laws of Ukraine on Stimulating De-Shadowing of Income and Improving Tax Culture of Citizens by Introducing One-Time (Special) Voluntary Disclosure by Individuals of Their Assets and Payment to Budget of One-Time Duty” No. 1539-IX, dated 15 June 2021 (“Tax Amnesty Law”), entered into force.
Tax amnesty
According to the Tax Amnesty Law, individuals will be released from liability for tax and currency control infringements for the assets reported in special returns. Information reported in special returns will be confidential and may not be used in tax audits, criminal investigations, or as evidence in court proceedings.
Individuals, who are tax residents of Ukraine, and individuals who used to be tax residents of Ukraine at the time when reportable assets had been acquired, may apply for the tax amnesty. However, certain categories are not eligible for the tax amnesty.
If properly reported, assets are taxed at the following special duty rates:
- 2.5% for Ukrainian government bonds with a maturity greater than one year and no premature termination, acquired: (i) between 1 September 2021 and 31 August 2022, and (ii) prior to filing of the special return
- 5% for assets located in Ukraine, including debt claims to residents of Ukraine
- 7% (9% starting from 1 March 2022) for assets located abroad, including debt claims to non-residents of Ukraine
Individuals may report assets in their special returns from 1 September 2021 until 1 September 2022.
Special duty is payable within 30 calendar days upon filing the return.
Antitrust amnesty
Individuals may benefit from reduced liability for infringements of Ukrainian merger control rules. Particularly, an individual that completed a transaction without obtaining prior approval of the Antimonopoly Committee of Ukraine, if such approval was required, would be subject to a UAH20,400 fixed fine. By contrast, the statutory maximum fine for the failure to comply with Ukrainian merger control rules is 5% of a group’s turnover.
To benefit from the reduced antitrust liability, individuals should meet the following requirements:
- submit the special returns and pay the special duty
- transactions took place before 31 December 2020
- transactions did not lead to monopolisation or substantial restriction of competition on the relevant market
- file merger control notifications by 1 October 2022