Kyiv intends to introduce obligatory declaration of assets for wealthy Ukrainians

The Ukrainian Ministry of Finance has developed a draft law that proposes to identify high-income individuals, the final beneficiaries of large taxpayers, Interfax-Ukraine reports.

The bill which defines the criteria for individuals with high income and it requires them to submit an annual declaration of property and income. It has been published public on the Ministry of Finance website.

Among other criteria, the draft bill proposes to attribute to this group of taxpayers those who hold 10% or more of the authorized composite capital or voting rights of acquired shares of any non-resident legal entity that declared at least EUR 10 million in income in the previous tax period.

It is also proposed to consider individuals with high income, those whose annual taxable income for the previous tax year exceeds 50 million UAH ($1.77 million USD).

As indicated in the accompanying documents to the bill, according to the results of the declarations campaign for 2016, 63 Ukrainians have declared income worth more than 7.65 billion UAH ($271 million USD) in total. The State Fiscal Service or SFS added 225 million UAH ($7.97 million USD) in personal income tax and 26.6 million UAH ($941,640 USD) in military duties.

In addition, the bill proposes to extend the power of the SFS to receive information on the bank deposits of such taxpayers.

The bill’s timely arrival comes days after January 1, which is the start of the stage of declarations submission for 2017 by persons authorized to perform the functions of state or local government.