Clarification on import duty has been issued by the State Customs Service of Ukraine.
Contributions in kind by foreign investors to the charter capital of a Ukrainian company are exempt from import customs duty (except for goods intended for sale or personal consumption).
However, duty becomes payable if the goods are sold or transferred within 3 years of importation. The clarification states that liability for the import duty is triggered if, during the 3-year period, the foreign investor transfers his shares in the company, just as when he transfers the goods contributed in kind.
On a more welcome note, the clarification states that liability to pay the import duty is not triggered by loss of status as a company with foreign investment within the 3-year period.
Law:
- Law of Ukraine No. 93-96/ BP, dated 19 March 1996, On Foreign Investment Regime;
- State Customs Service of Ukraine Order No. 31, dated 20 January 2009, On Approving the General Tax Clarification on the Application of Article 18 of the Law of Ukraine on Foreign Investment Regime
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
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The original publication date for this article was 16/02/2009.
