The National Bank of Ukraine Simplifies the Rules Governing Overseas Transactions by Ukrainians
24.02.2017 23:20 | National bank of Ukraine
The National
Bank of Ukraine has reviewed approaches to licensing of transactions involving
depositing funds on accounts abroad and overseas investments performed by
individuals.
From now on,
individuals will be allowed to deposit FX funds that originate from abroad on
accounts without having to obtain an individual license from the NBU. For
instance, Ukrainians shall not be required to obtain a license from the NBU to
deposit funds received as salaries, alimony, pensions, scholarship, etc. on
accounts abroad.
Individuals will also be allowed to make
investments abroad using funds that originate from abroad, including
investments from overseas accounts, reinvestments abroad and trading in
financial instruments on international stock exchanges, etc.
However,
individuals are required to hold individual licenses issued by the NBU to
transfer funds abroad to make investments or deposit them on accounts abroad as
mandated by Ministerial Decree On Foreign Exchange Regulation and Control No.
15-93 of 19 February 1993.
It should be
stressed that granting a permit to perform transactions involving depositing
funds on accounts abroad and overseas investments does not exempt individuals
from the requirement to declare income, pay taxes on these transactions in
Ukraine in accordance with applicable laws.
The amendments
to this effect have been approved by NBU Board
Resolution No. 14 of 23 February 2017 On Amendments to Some NBU
Regulations. The amendments shall come into
effect from 25 February 2017.
Further
liberalization of FX transactions performed by individuals that are subject to
licensing will be implemented in accordance with a framework for a new foreign exchange
regulation based on a new law On the
Currency, a single framework
law that will outline the main principles governing FX regulation in Ukraine
and replace an obsolete Ministerial Decree On Foreign Exchange Regulation and
Control No. 15-93 of 19 February 1993 and some other regulations. The draft law
is developed by the NBU and experts employed by the European Commission.