How to Declare the Purchase of Foreign Currency with Salary – NACP Explanation
Purchasing foreign currency with earned funds is a common practice for preserving savings. At the same time, when filling out the declaration, declarants often have questions about how to correctly reflect such transactions. Clarifications on this matter were provided by the Integrity Office of the NACP.
Example of the situation
If during the year a person received 1 million UAH in salary and exchanged part of these funds (equivalent to 400 thousand UAH) for US dollars, which as of December 31 are kept in cash or in a foreign currency account, this does not create new income.
How this is reflected in the declaration
Section 11 "Income"
This section indicates only the actual income received – in the given example, this is 1 million UAH of salary. The exchange of part of the funds into foreign currency does not increase income and is not separately reflected.
Section 12 "Monetary Assets"
Here all available monetary assets as of the end of the reporting period are declared: cash foreign currency, balances on bank accounts, etc. If their amount exceeds the established threshold of 50 subsistence minimums, information about them must be obligatorily included in the declaration.
Other sections of the declaration
The section concerning expenses is not filled out in this case. The purchase of currency with own funds is not considered an expense, since there is no irreversible disposal of property – only the form of the asset changes from hryvnia to foreign currency.
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