Finance Ministry wants rich people to file special tax returns
"Persons with high income are individuals earning over 50m hryvnyas a year."
The Finance Ministry has drafted a bill that suggests introducing a legal notion of a "person with high income" and oblige such individuals to file annual tax returns. The draft bill that the Finance Ministry posted on Tuesday, 9 January suggests that wealthy taxpayers should be considered as private entities who fall under one of the following criteria:
- is the ultimate beneficial owner (stakeholder) of a large taxpayer;
- directly or indirectly owns 10% or more of the authorized capital of a legal entity that is a tax resident of another state and has declared at least 10m euros in earnings for the previous tax year;
- whose aggregate annual taxable income for the previous tax year exceeds 50m hryvnyas.
The bill requires such individuals to file annual statements on their property and income. It also provides for tougher punishment for missing the deadline for tax returns by such individuals.