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Increase of LLC’s authorized capital by non-resident: VAT implications for cash contributions.

  • Increasing the authorized capital of an LLC by a non-resident adding additional capital is not subject to VAT
  • VAT taxation laws are established in Chapter V and Subsection 2 of Chapter XX of the Tax Code
  • VAT is 20% of the taxable base and is added to the price of goods/services
  • Operations of taxpayers with non-residents adding contributions to the additional capital of an LLC are not subject to VAT
  • Goods include material and non-material assets, land plots, securities, and derivatives used in operations
  • Transactions with non-residents adding contributions to the additional capital of an LLC are not subject to VAT

Source: news.dtkt.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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