Restrictions on dividend payouts to foreign investors and shareholders may soon be lifted by the National Bank of Ukraine. Clients have until 19 May 2016 to apply to their respective banks on their intended payouts.
Restrictions on dividend payouts to foreign investors and shareholders may soon be lifted by the National Bank of Ukraine. Clients have until 19 May to apply to their respective banks on their intended payouts, which will then be reviewed by the NBU.
This move by the NBU comes as it considers a range of measures associated with the gradual lifting of restrictions on the currency market to enable 'business as usual'. The payout of dividends to foreign investors/shareholders is one of the main priorities.
The procedure for dividends payout abroad is currently being developed, and it's already known that the operation on such payouts will be processed via accounts opened in one bank; meaning that the local company cannot pay out dividends via several banks at the same time. The dividends will likely be paid in instalments over a period of time.
Next steps for legal entities and foreign investors
Banks are currently collecting your applications on intended payouts, and based on this information, the NBU will finalise the procedure. Each bank will then receive from the NBU, a list of clients for whom they will be able to carry out a transfer of foreign currency abroad, to pay dividends.
Deadline
The application for intended payout of dividends to foreign shareholders should be filed with your bank by 19 May 2016. The date to lift the ban on dividends payout is unknown at the time of publishing.
Talk to us
TMF Ukraine can assist with the drafting of all required documentation to make your application, and the subsequent processing of payouts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
