The introduction of personal investment accounts (PIA) will allow funds that are currently not working to be attracted into the economy and increase tax revenues without risk to the state budget. This was emphasized by the Chairman of the NSSMC, Ruslan Magomedov, during the presentation of the draft Law of Ukraine No. 14296 on the launch of PIA.<\/p>\n
The mechanism provides tax relief only for long-term investments: if the invested funds are kept in the account for 5 years, then after the end of this period, all profits for this period are excluded from the tax base and are not subject to declaration by a private individual \u2014 by analogy with OVDPs. In the event of early withdrawal of funds (less than 5 years), all taxes are paid in full.<\/p>\n
Personal investment accounts are intended for funds that are currently:<\/p>\n
\u2013 held in cash<\/ins>;<\/p>\n \u2013 held in accounts without participation in the economy<\/ins>;<\/p>\n \u2013 invested in currency without tax effect<\/ins>.<\/p>\n According to the latest data, Ukrainians have a total of about UAH 1 trillion in their accounts. Also, according to a special survey, citizens mainly keep their money in the following ways: 59% \u2014 in cash at home, 21% \u2014 in current or deposit accounts, and the rest use other methods.<\/em><\/p>\n \u201cSo, by launching personal investment accounts, we will be able to increase the tax base with money that currently generates no revenue at all. Attracting this money into the economy means business development, job creation, and economic growth,\u201d explained Ruslan Magomedov.<\/em><\/p>\n Another advantage of PIAs is the minimization of bureaucracy for issuers and investors. Today, tax administration for thousands of small investors creates significant costs and often hinders market development. In this model, investment firms take on all accounting and interaction with tax authorities. For citizens, this means no need to submit tax declarations, and for issuers, it means exemption from mass tax administration.<\/p>\n As a reminder, recently, the Chairman of the NSSMC, Ruslan Magomedov, together with the initiator of the bill, Member of Parliament Taras Tarasenko, presented the concept<\/a> of the draft Law of Ukraine No. 14296 \u201cOn Amendments to the Tax Code of Ukraine and Other Laws of Ukraine Regarding Mechanisms for Encouraging Individual Investment and Supporting National Issuers\u201d , prepared by the NSSMC regarding personal investment accounts (PIA).<\/p>\n Presentation materials<\/a> on the draft law, as well as additional reference information<\/a>, can be found by following these links.<\/p>","protected":false},"excerpt":{"rendered":" The introduction of personal investment accounts (PIA) will allow funds that are currently not working to be attracted into the economy and increase tax revenues without risk to the state…<\/p>\n","protected":false},"author":367,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4,12],"tags":[],"class_list":["post-1182373","post","type-post","status-publish","format-standard","hentry","category-golovn-novini","category-news","category-tsnn-paperi"],"_links":{"self":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1182373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/users\/367"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/comments?post=1182373"}],"version-history":[{"count":4,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1182373\/revisions"}],"predecessor-version":[{"id":1182386,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1182373\/revisions\/1182386"}],"wp:attachment":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/media?parent=1182373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/categories?post=1182373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/tags?post=1182373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}