Ukraine Stamp Duty On Securities Transactions - A Reminder

We continue our series of reminders for investors doing business in Ukraine. Investors which operate in Ukraine through an incorporated subsidiary in the form of a company should be aware that operations carried out after 2 June 1993 will attract a stamp duty equal to:

1) 0.1% of the nominal value of any securities offered to the public payable by the issuer upon registration of a prospectus;

2) 0.2% of the value of a contract for the sale of securities payable by the seller both in the case of initial offering and subsequent sale transactions.

The stamp duty is payable by the 15th of the month following the month when the transaction was closed. Failure to pay the duty leads to a penalty of 0.2% of the amount of duty per day. (Regulations on the procedure for assessment and collection of stamp duty by the Ministry of Finance No 15 of 22 May 1993)