The Parliament has introduced a tax on interest on deposits
7/7/14 4:43 PM
Parliament adopted the amendments to the Tax Code of Ukraine which introduced a tax on "passive income" - interest on deposits, royalties, dividends.
The draft law № 4101 was submitted by the Cabinet of Ministers and voted by 267 MPs.
The Law includes:
- passive linear tax rate of personal income as a percentage -15%;
- taxation of royalties, investment income and dividends returned to the edition of the Tax Code,operating before 1 July 2014, by which such gains are taxed at rates of 15 (17%) and 5%, respectively;
- a single tax rate - 15% on other passive income from capital.
The law also clarified the rules of the Tax Code of Ukraine regarding the procedure for converting the income tax of individuals with early termination of the deposit (deposit) and implementation of the conversion of income as interest.