Foreign investments are values which are put by foreign investors in objects of investment activity according to the legislation of Ukraine for the purpose of profit earning or achievement of social effect.
They can be performed in a kind: foreign exchange which admits Ukraine converted by National bank; currencies of Ukraine - according to the legislation of Ukraine; any movable and real estate and the property rights connected with it; stocks, bonds, other securities, and also the corporate rights (the right of ownership to a part (share) in an authorised fund of the legal person; other values according to laws of Ukraine.
In given article features of customs registration of investments in the form of material assets, i.e. property which is imported into Ukraine as an instalment of the foreign investor in an authorised fund of the enterprise with foreign investments are considered.
The legislation of Ukraine regulating import of foreign investments
Foreign investment entering is regulated: the Customs code of Ukraine from 3/13/2012; the law of Ukraine from 3/19/1996 №93/96-ВР "About a mode of foreign investment"; the law of Ukraine from 2/17/2000 №1457-III "About discrimination elimination in the taxation of subjects of the entrepreneurial activity created with use of property and means of a domestic origin"; the resolution of the Cabinet of Ukraine from 8/7/1996 №928 «About the position statement about an order of the state registration of foreign investments».
Privileges in the taxation at import of foreign investments
According to the Law of Ukraine from 3/19/1996 №93/96-ВР «About a mode of foreign investment» foreign investments are values which are put by foreign investors in objects of investment activity according to the legislation of Ukraine for the purpose of profit earning or achievement of social effect. The enterprise with foreign investments the enterprise (organisation) of any organisation-legal form created according to the legislation of Ukraine, a foreign investment in which authorised fund is considered, at its availability, constitutes not less than 10 percent.
The state registration of foreign investments gives a bonus right, provided by the law «About a mode of foreign investment». Registration of foreign investments is performed by the Autonomous republic Crimea Government, regional, Kiev and Sevastopol city state administrations throughout three working days after their actual entering is perfectly in order, which is determined by the resolution of the Cabinet of Ukraine №928.
According to item 287 of the Customs code of Ukraine, the property which is imported into Ukraine as an instalment of the foreign investor (except the goods for realisation or own consumption), is released from taxation by the import customs duties. Hence, taxation concessionary terms extend only the property, getting under determination of basic funds according to the Tax code of Ukraine.
If throughout three years from the moment of foreign investment transfer on the balance sheet of the enterprise the property which has been imported into Ukraine as an instalment of the foreign investor in an authorised fund of the specified enterprise, is alienated, including in connection with the termination of activity of this enterprise (except foreign investment export abroad), the enterprise pays the import customs duties which settle payments proceeding from customs value of this property which is counted in currency of Ukraine at an official rate established by National bank of Ukraine at date of realisation of alienation of property.
According to positions of the Tax code of Ukraine operations on transfer of basic funds as instalment in an authorised fund of the legal person are subject to taxation by the excise and the tax to value added (VAT) in accordance with general practice.
During import on customs territory of Ukraine of the goods the enterprises with foreign investments for realisation or own consumption these goods are arranged in accordance with general practice without granting of privileges under the taxation.
In case of liquidation of the enterprise with foreign investments or alienations of the investment within three years from the date of its entering, it is necessary to pay the import duty at the rate of NBU at date of alienation and pay the VAT or to produce export of the imported goods. Thus alienation is understood as change of the proprietor of the investment, loss by the legal body of the status of the enterprise with foreign investments, including owing to an exit of the foreign investor from a railroad train of founders of the enterprise or because of reduction of a share of a foreign investment 10 % there are less.
