Standard rate 20%
Reduced rate 7 % rate applies to pharmaceuticals and healthcare products.
Not taxed by VAT : issues of securities, insurance services, reorganizations of legal entities, transfers and returns of property under operating lease arrangements, currency exchange and imports with a customs value of less then 150 EURO
Corporate income tax
Standard rate 18%
18% on profit before taxes determined under the rules of national accounting standards (or IFRS where applicable) and adjusted for a list of differences which increase or decrease the profit for the purpose of CIT. Companies with annual net income less than 20 mln. UAH may choose not to apply adjustments and, hence, they define tax base according to their accounting records.
Certain types of businesses are (e.g. insurance) subject to special tax treatment which may provide for lower tax rates.
Simplified taxation of self employed persons and companies with turnovers up to UAH 5 million , 3-5 % of gross income depends on field of activity , annual revenue, average salary amount, VAT/Not VAT taxpayer, etc.
Small companies with annual net operating income less than 3 mln. UAH and with average salary paid to employees exceeding 2 minimum wages (7446 UAH) and meet certain criteria are exempt from CIT until 1-st of January 2022
Dividends paid by one resident CIT taxpayer to resident company which is a CIT-payer are exempt of CIT.
Dividends paid by Ukrainian company to another legal entity are subject to advance corporate income tax at regular rate 18%. This advance payment can be later offset against CIT, but not against other taxes. There are specific rules of tax base for advance CIT calculation.
15% (if accrued to non-resident)
Royalties & Service Fee
15% (if accrued to non-resident). 20% can be applied to some types of income.
Capital gains are treated as ordinary income and taxed under regular corporate income tax rate (18%).
Taxes on workforce
Social contributions for employee - NA
Social contributions for employer
22% social tax, but not less than 819,06 UAH (22% of minimum wage). The tax base is also limited to 55 845 UAH (minimum wage*15).
Personal income tax for employee
18% flat rate and 1,5% of military duty
Personal income tax on capital gains
Income from the first during the year sale of residential property which was owned not less than 3 years is tax-exempt. In other cases the rate is 5%. Some specific conditions apply for inheritance and gifts.
Dividends and interests
Dividends are taxed at 5% (9% if legal entity is not CIT payer)
18% for other passive income.
The sales of lands with certain maximum area are tax-exempt.
For other sales of lands the rate is 5%. Some specific conditions apply for inheritance and gifts.
The text above is not tax advice and can be a subject for legislation updates after the publication date. Please contact tax advisors and auditors of Crowe Donoway and Crowe DNW Ukraine, if you have questions regarding taxes in Ukraine: taxlegal.ukraine @ crowednw.com