Exemption from fiscal fees applies exclusively to certified bullion
The State Tax Service of Ukraine has clarified the taxation rules for citizens' income from the sale of bullion metals. According to current legislation, such operations are not subject to personal income tax and military levy. This is reported by the portal PromPolitInform, citing information from the State Tax Service of Ukraine.
Financial transactions involving the sale of gold, silver, or other precious metals in bars and powders purchased from banks have a clear legal status. Pursuant to the norms of current legislation, such material assets are classified as currency valuables.
The provisions of the Tax Code of Ukraine stipulate that funds received from operations with currency valuables are not included in the calculation of citizens’ total monthly or annual taxable income. Due to this, the profit from the realization of such assets is completely exempt from personal income tax withholding.
Taxation with the military levy
A similar approach applies to additional fiscal payments from the population. Incomes that, according to the law, are not included in the income tax base are automatically exempt from the accrual of the military levy as well.
An exceptional basis for the payment of fees can only be specific cases directly outlined in the text of the Code. No such exceptions are provided for standard bullion sales transactions.
Reporting requirements
If the realization of bullion metals was a citizen’s sole source of additional revenue during the reporting year, submitting an annual property status declaration is not required. The absence of a taxable base cancels the obligation to fill out such a document.
However, the presence of other grounds for reporting changes the situation. In the event of receiving foreign remittances or investment profits, you will have to fill out the declaration, and you will also need to indicate operations with precious metals in it.
Difference from jewelry
The described rules apply exclusively to certified bullion metals of the highest fineness. Everyday ornaments or jewelry made of silver and gold are not equated to banking valuables solely based on their origin.
The financial result from the sale of ordinary items is subject to general taxation in accordance with current rules. Tax authorities advise carefully checking the status of existing assets prior to conducting any transactions.
Illustrative photo: Ank Kumar / CC BY-SA 4.0
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