Distribution of dividends for 2016
According to the Resolution of the National Bank of Ukraine No. 33 “On Amendments to Several Legislative Acts of the National Bank of Ukraine” dated 13 April 2017, in line with further relaxation of foreign exchange regulations, the National Bank of Ukraine greenlighted the distribution of dividends for 2016 and simplified the procedure for distribution thereof.
Thus, the NBU allowed the transfer of foreign currency to foreign investors to repatriate dividends for corporate rights / shares for 2014-2016 in the amount up to USD 5,000,000 within one calendar month.
In addition, pursuant to the Law of Ukraine “On Amendments to the Tax Code concerning the Improvement of the Investment Climate in Ukraine” of 21 December 2016, since 1 January 2017, the dividends paid by the non-resident companies, institutions for joint investment and companies that are not subject to corporate income tax, shall be taxed with the income tax imposed on the income of natural persons at a rate of 9%.
It should be noted that the dividends are also subject to a 1.5% military tax.