REUTERS
The relevant amendments were introduced in the Tax Code.
Ukraine will stop levying 1.5% war tax on coupon and investment incomes from government domestic loan bonds from May 23, 2020, due to changes in legislation.
The relevant changes are stipulated in Law No. 466-IX "On amendments to the Tax Code regarding the improvement of tax administration, the elimination of technical and logical inconsistencies in tax legislation," adopted by the Verkhovna Rada in January 2020, the Ukrainian economic news portal Ekonomichna Pravda reported.
"This is a big step forward in making government bonds more popular with households. It's necessary to ease [their] access to the market and widely inform about it so that the purchase of government bonds becomes as simple and understandable as opening a bank deposit," Head of the ICU's brokerage services department Yevgeniya Gryshchenko said.
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"After all, the bonds win in terms of reliability, and their profitability is attractive. The next and close step in promoting this tool will be the opportunity for individuals to open a securities account remotely and buy or sell bonds without leaving home," she said.
The changes in the legislation do not require any additional actions from the holders of securities, as the respective taxation will be suspended automatically.
As UNIAN reported earlier, in late April, the Finance Ministry returned to the domestic borrowing market after a few weeks off, having resumed weekly auctions to place government domestic loan bonds.
Panic on global markets caused by the rapid spread of the coronavirus had weakened local currencies of emerging markets and triggered the stock market crash.
As a result, non-residents reduced purchases of debt securities of developing economies, including Ukraine.