Payment of dividends to foreign investor

Dear clients, starting from 13.06.2016, You may purchase /transfer FX funds for dividend payments to foreign investors!

Main documents for purchase/transfer abroad FX funds to pay dividends (cl.2 part ІІ Chapter 3 NBU Res. No 281 from 10.08.2005):

  • application for FX purchase/payment FX order;

  • documents, confirming the ownership of foreign investors on corporate rights/investment certificates of Ukrainian companies, on which the dividends are to be paid (copy of the charter of a LLC, shares of which are owned by a foreign investor, account statements in securities of foreign investors at the custodian, bank statements of registrar from the register of holders of securities, etc.) and their copies;

  • a copy of the issuer decision to pay dividends to foreign investors for 2014-2015 years.

According to the NBU Res. No 369 from 15.08.2016 the following documents are required:

  • Financial statements (balance sheet, income statement, tax returns, applications for tax returns, other financial statements), with the Fiscal office marks confirming report acceptance;

  • Information (Fiscal office certificate) on paid income tax by a non-resident in Ukraine in the form, approved by the Ministry of Finance of Ukraine Res. from 03.12.2012 No 1264. Such certificate is given on the request of non-resident or resident – tax agent within 5 business days from the day of submission of relevant written request. Therefore, on the date of application for FX purchase/tax should be paid;

  • Information/documents on the ownership structure, the final beneficial owners (controllers) of financial transactions counterparties that have 10 or more percent of the authorised capital;

  • A letter in an arbitrary form confirming the economic feasibility (meaning) of such a transaction and no suspicions;

  • A letter/document of a non-resident containing description of the type of the activity this non-resident is carrying out.

Instead of the Fiscal office certificate on tax paid by non-residents the following documents shall be submitted:

  • a written notice containing: the name of the resident which is paying to non-residents income from sources in Ukraine (Code according to EDRPOU); the full name of a non-resident who received income; the amount of profit (income) accrued (paid) in favour of non-residents indicating the period in which the income was paid; withheld income tax amounts from non-resident income or non-resident’s documents submitted in the case of independent calculation and payment of tax by non-residents;

  • documentary confirmation of the bank on tax income tax payment by non-residents (payment order, statement, certificate, etc.) received by e-mail National Bank of Ukraine (if tax rate is different from 0%);

  • a copy of duly legalised, translated in accordance with the laws of Ukraine certificate (or its notarised copy), confirming that non-resident is a resident of a country, which signed up with Ukraine a double taxation avoidance agreement according to cl. 103.5 of the Tax Code of Ukraine (in case of dismissal (decrease) of income tax for a non-resident).

There are restrictions on the amount of dividend payment within one calendar month

The total amount of dividends for the years 2014-2015, to be returned abroad (TA):

  • TA ≤ equiv. 10 mln. USD;
  • equiv. 10 mln. < ЗО ≤ equiv. 50 mln. USD;
  • ЗО > equiv. 5. mln. USD.

Possible sum of dividend payments for each calendar month (SoP):

  • SoP ≤ equiv. 1 mln. USD;
  • SoP ≤ 10% of TA;
  • SoP ≤ equiv. 5 mln. USD.

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