The Ukraine National Commission on Securities and Stock Market has presented draft law No. 14296 to launch Personal Investment Accounts (PIR), positioning them as a vehicle to channel idle household funds into the economy through a tax incentive tied to long-term holding periods. Under the proposed mechanism, if funds remain invested in a PIR for five years, all profits earned over that period would be excluded from an individual’s tax base and would not be subject to declaration, with early withdrawals triggering full taxation. The Commission framed the target pool as savings held in cash, kept in bank accounts without participation in the economy, or held in foreign currency without tax effect, citing around UAH 1 trillion on Ukrainians’ accounts and survey results indicating 59% of citizens keep money in cash at home and 21% in current or deposit accounts. The model also shifts tax accounting and interaction with tax authorities to investment firms, intended to reduce costs associated with administering tax for large numbers of small investors and to relieve issuers from mass tax administration.
Ukraine National Commission on Securities and Stock Market 2025-12-19
Ukraine National Commission on Securities and Stock Market presents draft law to introduce personal investment accounts with five-year tax relief
The Ukraine National Commission on Securities and Stock Market introduced draft law No. 14296 to establish Personal Investment Accounts (PIR) to channel idle household funds into the economy via tax incentives for long-term investments. Profits from funds held in a PIR for five years would be tax-exempt, while early withdrawals would incur full taxation. The proposal shifts tax accounting responsibilities to investment firms to reduce administrative costs for small investors and issuers.