FAQ
Are there guarantees when investing in Ukrainian government bonds?
The Government of Ukraine, through the Ministry of Finance as the borrower of funds, undertakes to repay the bonds in full in accordance with Article 16 of the Budget Code of Ukraine.
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Where are the funds directed that are received by the state from the sale of domestic government bonds?
The funds from the sale of domestic government bonds are transferred to the Ministry of Finance and used for budget expenditures.
What is the minimum investment amount?
The minimum investment amount is the face value of one bond — 1000 UAH / USD / EUR. When investing in government bonds, you need to consider the rational sum of investment for yourself, as investing in government bonds involves fees and taxes.
In case of government bonds denominated in foreign currency, how is payment and redemption made?
Payment of coupon (interest) income and redemption (of principal amount) always takes place in the currency of bonds issue, namely in dollars or euros.
How does the early sale of domestic government bonds take place?
Early sale of domestic government bonds is carried out by submitting a request to a broker. As a rule, the sale takes place on the same day.
In what currency are the funds from the early sale of foreign currency domestic government bonds?
Early sale of domestic government bonds by individuals is possible both for UAH, pegged to the official exchange rate, and for the currency of the bond issue, namely in dollars or euro.
Which bonds should I choose?
When buying government bonds, compare the future profit with a similar investment from a bank deposit. The key criteria in choosing government bonds are maturity and yield. Determine which investment you choose based on the criterion most important to you.
Can I sell government bonds at any time? How quickly and at what price?
High liquidity in the domestic government bonds market allows you to sell securities during any trading session. The selling price is determined by the market at the time of sale.
What affects the yield of government bonds?
The yield on domestic government bonds is shaped by the market depending on many factors, such as: the National Bank of Ukraine key rate, conditions in the foreign currency market, macroeconomic data, expectations and sentiment of bondholders, and the predominance of demand or supply, among many others.
Who else can manage my account (for example, first line relative, spouse, etc.)?
The account is managed by the individual who registered it. The right to manage your account is also granted to persons who have a power of attorney in accordance with current legislation.
Is ICU a tax agent, and what does it mean?
According to clause 170.2.9 of the Tax Code of Ukraine, ICU is a tax agent and withholds all necessary taxes and fees independently when paying income and provides the client with all necessary primary documents. With government bonds, the company does not withhold any taxes, as none are currently imposed by law.
Am I obliged to file a tax return?
Tax withholding by ICU does not relieve an individual from filing a tax return, except in the cases specified in subparagraph 179.2 of the Tax Code of Ukraine.
How is a tax return submitted?
The tax return is submitted to the State Tax Service* in one of three ways:
- personally, by the payer or authorized person;
- by mail with a return receipt and a description of the attachments;
- online, using an electronic digital signature.
*not applicable for non-residents of Ukraine
What is the deadline for filing a tax return?
The tax return shall be filed for the base period, which is equal to a calendar year for personal income tax payers, by May 1 of the year following the reporting year, except as provided in Section IV of the Tax Code of Ukraine.
Will my income change if interest rates on government bonds change?
The income you earn, which is based on the yield when you bought a government bond, remains unchanged until maturity. In the case of early sale, the yield of the investment may vary depending on the price at the time of sale.
Can I get additional income on my investment in government bonds?
Yes, if the yield on the sale of your government bonds is lower than the yield at which you bought them, the principal amount you receive will be higher.
Where do the funds from the redemption of securities or interest payments go?
The money that comes from the Ministry of Finance can be transferred to the account of an individual or be directed to the purchase of new securities (reinvestment). Reinvestment allows you to extend your investment, save on bank fees, and quickly make a new purchase.