- Concerning Taxation of Income from Capital
- July 31, 2014
- Law Firm: Dentons Canada LLP - Toronto Office
The draft “Law on Amendments to the Tax Code of Ukraine” registered under No. 4101¿ dated 18 June 2014 was adopted by the Verkhovna Rada on 4 July 2014. The draft Law was submitted to the President for signature on 14 July 2014.
Specifically, the draft Law provides for the following:
Setting a single tax rate on passive income of individuals in the form of interest - 15 percent;
Restoration of the procedure for taxation of passive income of individuals in the form of royalty, investment income and dividends effective until 1 July 2014, in particular:
Passive income of individuals in the form of royalty and investment income shall be taxed at the rate of 15 percent (17 percent);
Passive income of individuals in the form of dividends shall be taxed at the rate of 5 percent.
The Law is to take effect from 1 August 2014. It also envisages that starting from 1 July 2014 taxes assessed (levied) on income in the form of interest according to the progressive scale shall be abolished and not payable to the budget.