Securities
JSB “CLEARING HOUSE” offers services for the purchase and sale of domestic government bonds.
Domestic government bonds (DGBs) are Ukrainian government bonds issued by the Ministry of Finance of Ukraine.
- Issue currency. Hryvnia, US dollars, euros.
- Nominal value. 1,000 UAH, 1,000 USD, 1,000 EUR.
- Payments. The redemption and payment of coupons (interest) on foreign currency denominated domestic government bonds are made in the same currency by the Ministry of Finance of Ukraine.
- Form of circulation. In electronic form. Ukrainian government bonds are accounted for on a securities account.
Advantages of purchasing government bonds:
- 100% state guarantee. The costs of repayment of the government bonds are covered by the Ukrainian budget.
- Preferential taxation. Income received from operations with domestic government bonds is taxed at preferential rates.
- High liquidity. Possibility of quick sale of bonds on the secondary market.
- Hedging of currency risks. Protection against sharp currency fluctuations.
- Profitable purchase. Foreign currency domestic government bonds can be purchased for hryvnia at the exchange rate on the day of purchase, and are redeemed in foreign currency.
- These bonds can be used as collateral for bank loans.
Peculiarities of taxation of income from operations with domestic government bonds
Income from government bonds consists of:
- Investment income - the difference between the income from the sale or redemption of government bonds and the cost of their acquisition.
- Interest income - coupons.
They are not included in the total monthly (annual) taxable income of an individual taxpayer:
• investment income from operations with domestic government bonds (clause 165.1.52 of the TCU);
• interest income from operations with domestic government bonds (clause 165.1.2 of the TCU).
The amount of income received by an individual taxpayer in the form of investment and interest income from transactions with government bonds is not subject to military duty.
To purchase government bonds, you must:
- Contact your personal manager for advice on purchasing government bonds.
- Open a current account in the national and/or foreign currency or a securities account with a bank.
- Transfer funds to the current account to pay for the applied for government bonds.
- Enter into a securities purchase and sale agreement with the bank.
These simple steps and tax benefits make domestic government bonds a profitable and affordable investment instrument.
