The legislation introduced by the Ukrainian president got votes of 243 MPs.

Starting  September 1, 2021, it offers  a one-year window for voluntary declaration of private assets acquired before January 1,2021 that were not reported for taxation.  The policy is set to legalize income through ‘zero declaration’ procedure.

Often referred to as ‘capital amnesty’, the legislative initiative is aimed at both residents and non-residents of Ukraine who failed to respect their tax liabilities on the acquired assets. Such individuals are given a chance to settle their tax liabilities by filing a special voluntary declaration on their private assets that were acquired on untaxed income or remained undeclared before January 1, 2021.

According to the proposed procedure, applicants may file the Special Declaration through a Ukrainian notary, allowing them not to disclose his/her identity to the tax office.

Who is eligible

A private individual referred to as an applicant: a resident of Ukraine for the tax purposes, including self-employed individual, and a  foreign tax resident who used to be Ukrainian tax resident at the time when reportable income had arisen.

Who is not eligible

Publicly exposed persons, i.e., individuals who were required to file declarations under anti-corruption legislation for any period since 1 January 2010

Individuals who are not of a legal age.

Sanctioned individuals – publicly exposed persons

The proposed tax amnesty covers “reportable assets” in the form of:

Valuables  – bank metals,  currency values in hryvnas and foreign currency, securities, movable and immovable property,  art collectables, jewelry, precious  metals, stakes in legal entities, intellectual property rights, other property rights and financial instruments owned, other assets that are not kept in bank accounts that which generate or may generate income for the Applicant

In contrast, the following assets are excluded for the purposes of the tax amnesty:

income, property, other assets acquired through criminal activities, OTHER THAN criminal tax evasion, currency control offences, violations of the concentration procedure under the Ukrainian antitrust legislation;

income, property, other assets of the Applicant who is subject to a pre-tial investigation or court proceedings for certain criminal violations, including criminal tax evasion, forgery by an official, etc.;

physical cash UNLESS deposited with Ukrainian banks under so-called “special bank account” procedure. No relief is provided for the associated KYC and AML procedures conducted by Ukrainian banks in terms of checking, for instance, source of deposited funds.

Income, property or assets deposited with banks or registered in the ‘agressor-country’

Tax rates

If properly disclosed, the qualifying income is proposed to be taxed at the following Special Tax rates:

5% of the tax base of  the currency values deposited with Ukrainian banks, debt claims to residents of Ukraine, or  other reportable assets located (registered) in Ukraine. Alternatively, a person can apply for 6% of the tax set to be paid yearly in three equal installments

9% of the tax base of  the currency values deposited with foreign banks, debt claims to non-residents of Ukraine, or other reportable assets located (registered) outside of Ukraine. Alternatively, a person can apply for 11,5 % of the tax set to be paid yearly in three equal installments.

2.5% of the nominal value of Ukrainian government bonds with maturity greater than 1 year and no premature termination, acquired (i) between 1 September 2021 and 31 August  2022 (ii) prior to filing of the Special Declaration. Alternatively, a person can apply for 3% of the nominal value of bonds  set to be paid yearly in three equal installments.

A special declaration must be filed in a digital format.

Assets that are ‘automatically pardoned’

An apartment of up to 120 sq.m. or it property rights to it,  a house of up to 240 sq.m. or its unfinished construction or property rights to it, non-residential premises of up to 60 sq.m., land lots acquired in line to art.121 of Land Code, one car, a motorcycle, or a transport vehicle, assets below 400 thousand hryvnas.


Upon discharging the “final” tax assessment, the applicant would be:

-relieved of financial liability for violation of tax and currency control legislation with respect to the reported income/assets

-and exonerated of criminal liability for tax evasion, tax non-compliance etc.

Information reported by applicants in the Special Declaration and supporting documents would be treated confidential and may not be relied upon in the course of audits or used as evidence in criminal proceedings with respect to the reported income/assets.


Before the vote,  the ‘Servant of the People’ parliamentary leader David Arakhamiya was seen texting his fellow MPs to get them to support the law and instrusting on what amendement should be disregareded.