|
Category |
Tax Rate |
|
Personal Income Tax (PIT) |
18% 15% 5% 0% |
|
Company (Corporate) Income tax |
18% |
|
Value Added Tax (VAT) |
20% 7% 0% |
|
Unified Social Insurance Contribution |
22 % ? total accrual rate regardless of the
class of professional risk
|
|
Unified Tax |
Group I - Up to 10% of minimum wage; |
Ukraine Income tax 2016
The rate remained at 18% and the calculation has not
drastically changed.
Up-front fees remain with the payment of dividends.
quarterly reporting period for companies with revenue of more
than 20m UAH.
Value Added Tax
Rates are same: 20%, 7% (medicine and medical supplies), and 0%. The list of transactions subject to zero rate tax remains unchanged. There are a number of changes in the operations of the tax-exempt, in particular the supply and export of grain and industrial crops is no longer exempt.
From January 1 2016, excludes the possible cancellation of VAT registration on the basis of the lack of records in the Ukrainian State Register for the legal entity.
Personal Income Tax, Unified Social Insurance and Military Tax Contribution
The most important change is the introduction of a single rate of personal income tax of 18% instead of the previous two tier rates of 15 and 20%.
The unified social insurance contribution rate was unconditionally cut to 22% regardless of the class of professional risk.
The maximum salary for the calculation of unified social insurance contribution has increased from 17 to 25 times minimum wage for able-bodied persons.
At a rate of 18% levied on most other types of income, including passive income such as dividends from non-payers of income tax, but if you received dividends from an income tax payer then the rate is 5%.
15% Tax rate is established from 1 January (on amount above 3 times minimum wage) for pensions, monthly cash allowance from the Pension Fund or the state fund.
0% Tax rate is mainly used for object inheritance.
From 1 January an individual taxpayer is no longer required to file a separate annual tax return on income received from salary and payments from Civil Contracts from two or more sources and if the revenue exceeds 120 times minimum wage in the reporting year
Military tax contribution 1,5% remains unchanged for 2016
Unified Tax
The calculation for unified tax payer groups I & II remains unchanged from 2015.
Changes into unified tax regulations will impact on only two groups of unified tax payers, individuals and legal entities (the so-called 3rd category), and those working in the agrarian sector (the so-called 4th category):
The maximum income of unified tax payers in the third category is decreased from UAH 20 million to UAH 5 million;
At the same time, the rates of unified tax for this group were increased from 2% to 3% (plus VAT) and from 4% to 5% (VAT included);
Rates of unified tax for agrarians were increased by 1.8%
Unified social Insurance contribution will be 303.16 UAH per month.
Application of registrars settlement operations also remained unchanged: for I group single tax payers it is not required, and for group II-III it is mandatory only if their annual income (both cash and non-cash) exceeds 1m UAH. If the income of an individual entrepreneur exceeds the specified amount, the use of registrars settlement operations at cash calculations will be required.
Excise tax
The main innovation here is that the electronic
system for VAT administration will be implemented for fuel sales
from 1 April 2016 following a one month trial period starting 1
March 2016.
Tax Administration
If the tax authority has unilaterally terminated the
contract on the recognition of electronic documents, then the
tax payer is entitled to submit statements on paper personally
or by mail.
Entrepreneurs in rural areas are permitted to pay taxes and fees directly to the registrar of settlement operations for rural (village) councils.
Introduction of new penalties:
- for failing to pay an agreed tax notice - from
10 to 100% of the amount of excise specified in the notice;
- for failing to meet submission deadlines for excise invoices/payments and adjustments to invoices already in the Unified Register - from 2 to 40% of the amount of excise tax;
- for failure to submit excise invoice / calculating the adjustment in the Unified Register of excise invoices for more than 120 days - 50% of the excise tax.
The last two penalties will be charged when the electronic system for fuel excise management is implemented.
Property Tax
Limitation on property tax set by local councils
is increased by 1% to 3% of the minimum wage. Dimension benefits
have not changed - 60 sq m. for apartments and 120 sq m. for
houses. Less lucky are the owners of large properties:
apartments over 300 sq m. and houses more than 500 sq m. for
each such object will have to pay an additional 25000 UAH per
tax year and local councils are not entitled to offer
exemptions.
Car tax
Previously tax was levied on used cars up to 5
years old and had a displacement of 3000 cc. Now cars not older
than five years and with an average market value more than 750
times minimum wage (1033500 UAH) will be taxed by 25000 UAH per
year.
Ukraine Income Tax Rate for Individual Tax Payers
Taxpayers in Ukraine are:
Residents receiving either income originating from the territory of Ukraine or foreign income.
Non-residents receiving income originating from the territory of Ukraine.
A person is a tax resident in Ukraine if he has a place of residence in Ukraine.
If the person has a permanent place of residence in Ukraine and another country, the person is deemed to be resident of Ukraine if his centre of vital interests is in Ukraine, or if he stays in Ukraine at least 183 days during the tax year calendar year).
This is the general rule which is subject to any features provided by the Agreement of avoidance of double taxation.
Ukraine Personal income tax rates for 2014 are 0%, 1%, 5%,
15%,17% ,30%.
It is the standard tax rate. This rate usually
applies to employment income of up to 10 times the minimum
monthly salary, rental income, investment income, in the event
of inheritance by any heir from a non-resident testator, income
from the sale of an object of movable property. 15%
Employment income exceeding 10 times the minimum monthly income. Sale of immovable assets by a non-residence. Inheritance tax when the recipient is non-resident. 17%
This rate applies to income from prizes and winnings of residents; to income from prizes and winnings of non-residents originating from Ukraine 30%
This rate applies to income from the sale of more than one object of real estate property during a calendar year;
In the event of inheritance by the heirs other than the testator's family members of the first degree of kindred. 5%
This rate applies to income received by a taxpayer from the first sale of a house, apartment or room not more than once, during a reporting year if the total area of the object exceeds 100 square meters. The subject to taxation is the part of income proportional to the amount of exceeds 1%
This rate applies to inheritance from the heirs who are the family members of the first degree of kindred;
To income received by a taxpayer from the sale of a house, apartment or room not more than once during a reporting year, if the total surface area of the house, apartment or room does not exceed 100 square meters 0%
Corporate Tax Rates in Ukraine
Ukrainian entities and foreign entities doing
business in Ukraine through a permanent establishment are liable
for corporate profit tax.
The Corporate Tax Law provides for the taxation of
the following persons:
Legal entities organized under the laws of Ukraine
and which carry out business in Ukraine;
Foreign entities
which get a profit from sources in Ukraine (the profit arises
from activities performed or property located in Ukraine, in
case of dividends, interest, royalties and other passive income,
the income is paid by a resident of Ukraine)
Non-resident legal entities which carry out business
activities on the territory of Ukraine through a permanent
establishment;
The corporate Tax Law established a basic corporate tax rate of 18% in 2014.
Software industry entities pay only 5% tax.
This is a standard rate from the net income for the entities and natural persons - private entrepreneurs.
Insurance companies and agricultural producers pay reduced corporate tax rate subject to terms.
Small legal entities may choose the simplified taxation paying up to 5% of their turnover.
There are tax incentives for companies performing approved investments in priority sectors as defined by law.
Approved investments are exempt from corporate income tax in the years 2014 to 2017. For the years 2018 to 2022 the corporate income tax rate is 8%.
Capital Gains Tax in Ukraine
A capital gain in Ukraine is added to regular income
and is taxable at the same rate as regular income for both an
individual and a company.
A capital loss from the sale of an asset may, in most cases, be offset against regular taxable income.
Tax Deductions at Source in Ukraine
Payments to non-residents are subject to tax
withholding rates as follows:
Dividend - 15%
Interest - 15%
Royalties - 15%
Technical Services ? 15%
Note: payments are subject to double tax treaties
when relevant.
Personal Tax Deduction in Ukraine
A resident taxpayer may claim a deduction from
annual taxable income for a limited amount of documented
expenses incurred in the reporting year for:
Secondary professional or higher education of the taxpayer and his family members;
Donations or charitable contributions to non-profit organizations;
Cost of paid services with regard to medical treatment of the taxpayer or a member of his family of the first degree of kindred.
Corporate profit taxation in Ukraine
Income Taxes
Ukrainian entities and foreign entities doing
business in Ukraine through a permanent establishment are liable
for corporate profit tax.
The Corporate Tax Law provides for the taxation of the following persons:
Legal entities organized under the laws of Ukraine and which carry out business in Ukraine;
Foreign entities which get a profit from sources in Ukraine (the profit arises from activities performed or property located in Ukraine, in case of dividends, interest, royalties and other passive income, the income is paid by a resident of Ukraine)
Non-resident legal entities which carry out business activities on the territory of Ukraine through a permanent establishment;
The corporate Tax Law established a basic corporate tax rate of 18% in 2014.
Software industry entities pay only 5% tax.
This is a standard rate from the net income for the entities and natural persons - private entrepreneurs.
Insurance companies and agricultural producers pay reduced corporate tax rate subject to terms.
Small legal entities may choose the simplified taxation paying up to 5% of their turnover.
There are tax incentives for companies performing approved investments in priority sectors as defined by law.
Approved investments are exempt from corporate income tax in the years 2014 to 2017. For the years 2018 to 2022 the corporate income tax rate is 8%.