The National Bank of Ukraine (NBU) has obliged banks to open separate accounts to pay wages, pensions, grants and other payments to citizens with the purpose of ensuring proper taxation of interest rates on passive incomes of citizens.
The decision is stipulated in NBU resolution No. 499 of Aug. 18, a copy of which has been sent to Interfax-Ukraine
On July 2014 the new amendments to the Tax Code passed by the Ukrainian
parliament foresee the replacement of the tax on passive income by the
tax on income from capital, retaining the progressive scale 15 percent,
20 percent, 25 percent, royalty rates, investment profit and dividends
were returned to the level which was in effect before July 1: for
royalty and investment profit – 15 percent and 17 percent respectively and dividends -5 percent; for taxation of other passive income from the placement of capital a single rate of 15 percent was introduced.
“The bank opens a separate current account to pay only wages, grants, pensions, social aid and other social payments foreseen in Ukrainian law… or uses an account opened for this purpose,” reads the document.
According to a letter of the NBU, the decision of the central bank was linked to changes made to the Tax Code regarding taxation of passive incomes of citizens.
The resolution will take effect after its official publication.
