Draft bill №4101-а

The Verkhovna Radad of Ukraine has adopted in principle the draft bill on changes to the Tax Code of Ukraine that specify what taxes will be imposed on capital  gains.

This draft bill proposes:

to introduce a monthly tax on revenue banks and credit institutions obtain, which is charged on interest to be paid to natural persons who hold deposits, current and other accounts without subtracting total interest from the tax amount. This tax will be attributed to expenses and calculated at the general income tax of 18%;

to comprehensively reform the income tax paid by natural persons and imposed on capital gains, including dividends, interest, royalty, revenue from securities, which is charged at progressive taxation rate adjusted annually.

The draft bill also envisages annulling income tax credit for collective investments, except institutions and funds that meet the criteria listed below:

if not less than 95 % of their assets are allocated in securities of a real estate fund;

if they are founded for the period of building real estate.

The draft bill envisages that an advance payment, in case of paying dividends, is not made if dividends are paid after they are adjusted annually, in the amount that doesn’t exceed the amount of income subject to taxation, charged at the general tax rate (18%) adjusted annually, and provided that income tax has been paid (paid off), which is charged annually, with paying dividends, including through advance income tax payments.

The relevant draft bill has been registered under №4101-а.