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LETTER OF THE MAIN STATE TAX AUTHORITIES OF UKRAINE

of July 10, 1996 No. 14

About payment procedure of dividends (part of profit) the companies in which authorized capital there is share of state-owned property

Subitem 4.2.3 of item 4.2 of article 4 of the Law of Ukraine of December 28, 1994 "About the taxation of profit of the companies" it is determined that the companies in which authorized capital there is share of state-owned property, and also created with the assistance of bodies, authorized to manage state-owned property, or state bodies of privatization, direct the dividends added on share of state-owned property for the purposes determined by the current legislation.

The payment procedure of dividends (part of profit) the companies in which authorized capital there is share of state-owned property was regulated in 1995 by the Decree of the Cabinet of Ministers of Ukraine of April 30, 1993 N 44-93 "About payment of dividends (part of profit) by the subjects of business activity created with the assistance of the state companies and the organizations" and the Presidential decree of Ukraine of December 28, 1994 N 812/94 "About some measures for support of the companies, organizations, organizations in the conditions of liberalization of the prices".

According to article 1 of the Decree of the Cabinet of Ministers of Ukraine of April 30, 1993 N 44-93 "About payment of dividends (part of profit) by the subjects of business activity created with the assistance of the state companies and the organizations" the companies of any organizational forms and types (except the companies with foreign investments) and banks in which authorized capital there is share of state-owned property shall from the amount of profit which remained after tax payment and other payments in the budget, to determine the size of the dividends or other receipts from profit on share of state-owned property contributed to their authorized funds by founders and to transfer appropriate means into the Government budget of Ukraine, the budget of the Autonomous Republic of Crimea, budgets of local self-government, other local budgets depending on type (form) of state-owned property on the specified property.

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