Law on economic passport of Ukrainian: Funds can be received even before adulthood

Author : News Agency

Source : 112 Ukraine

In the event of the death of a member of the Fund, the ownership of the share passes to the heirs
21:47, 7 December 2021

The text of the Volodymyr Zelensky’s bill on the economic passport of a Ukrainian has appeared on the Verkhovna Rada website.

How will the state allocate funds for economic passports?

According to the document, a fund will be formed in Ukraine at the expense of rent payments for the use of subsoil for the extraction of minerals of national importance. The fund will consist of:

  •     100% rent for the extraction of oil, natural gas and gas condensate within the continental shelf and / or exclusive (marine) economic zone;
  •     95% of the rent for the extraction of oil, natural gas and gas condensate elsewhere;
  •     70% of the rent for the extraction of other minerals of national importance.

Moreover, in the first year (2023), deductions will be 50%, 47.5% and 35%, respectively. Contributions will increase by 5% annually until they reach the targets indicated above.

The annual contribution is set at 2 minimum wages per 1 participant of the Fund. Such contributions will be made until the age of 18.

Who will control contributions and payments?

The money will be kept in a state bank, and it will be managed by an asset management company (AMC), or Fund administrator.

The supervisory authority will be the National Financial Services Commission.

The main body of the Foundation will be the Foundation Council, consisting of 5 members, who are selected through a competition. The competition committee consists of 5 people, elected one by one by the president, the Cabinet of Ministers of Ukraine, the National Bank, the National Commission of Financial Services and the financial committee of the Verkhovna Rada.

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The administrator of the Unified Social Register will keep records of information about the Fund's participants (for example, creating accounts for newborn children). The administrator of this register can simultaneously be the administrator of the Fund.

The services of the AMC, the bank, the fund administrator, the Fund Council and auditors will also be paid from the Fund. This can take no more than 0.5% of the net asset value of the Fund.

Who will be able to receive funds?

Money from this fund will be received by children born after January 1, 2019, who will reach the age of adulthood.

However, in order to receive payments, one must continuously reside in the territory of Ukraine for the last 5 years and be a citizen of Ukraine.

What can you spend your money on?

The money will not be received in hand, but it will go directly from the fund to pay the corresponding expenses. The money received will not be taxed.

The funds can be spent on: the purchase of housing, education in Ukraine, transfer to an account in the non-state pension system, or for the treatment of serious illnesses.

The promised funds can be spent up to 18 years, but only for the treatment of serious illnesses. In the event of the death of a member of the Fund, the ownership of the share passes to the heirs. The assets of the Foundation may not be seized, collected, or confiscated.

Earlier, the MP Danylo Getmantsev said that an amendment could be made to the second reading, which would allow the use of money for education from the age of 16.

How much money will a Ukrainian eventually receive after coming of age?

The document notes that the state guarantees payments in an amount not less than the amount of state contributions.

According to the head of the Servant of the People faction, David Arakhamia, Ukrainians can receive from 10 to 20 thousand dollars.

When will the law come into effect?

The law comes into effect one year after the date of its publication.

Danylo Getmantsev previously reported that the parliament could consider the document in the first reading in January, and fully adopt it in March.

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