Taxation system in Ukraine
In Ukraine all taxes or levies are national or local. Tax collection procedures and tax incentives may be established only by law. According to the Tax Code in Ukraine now exist 23 taxes and levies, 18 of which are national and 5 local.
The main taxes and payments are:
- Corporate Income Tax (CIT) (also known as Corporate profits tax-CPT);
- Value-Added Tax (VAT);
Other principal taxes include Personal Income Tax (PIT), land tax, royalties for the extraction of oil, natural gas and gas condensate, and the charge for using local symbols.
Corporate profit taxation
Ukrainian entities as well as foreign entities doing business in Ukraine are liable for corporate profit tax. Currently, the standard rate is 18% from the clean income (i.e. gross income). However, small legal entities in Ukraine may choose the simplified taxation.
Note: Simplified taxation is impossible for non-residents.
Legal entities incorporated and operating under Ukrainian law (even with 100% of foreign capital) and which carry out business in Ukraine are considered as domestic companies and treated as tax residents. In that case they are taxable on their worldwide income.
Legal entities that are incorporated abroad and operating under the laws of another country are foreign tax residents and are taxable on two sources of income:
- Income from carrying out business activities on the territory of Ukraine through a permanent establishment (PE);
- Profit from sources in Ukraine (the profit arises from activities performed or property located in Ukraine, in case of royalties, interest, dividends and other passive income, the income is paid by a resident of Ukraine).
Separate tax rules apply to insurance companies, operations with securities and agricultural enterprises.
Value-Added Tax
In Ukraine value-added tax (VAT) is known as podatok na dodanu vartist (PDV). According to the Ukrainian legislation, VAT is levied at a rate of 20% and is imposed on:
- Domestic sales of goods and/or services,
- Imported goods or services.
The general rule is that the taxable amount is defined on the basis of the contractual value of the goods or services supplied.
Note: Currently, for exported goods or services the VAT rate is zero.
The model of VAT in Ukraine is the input-output one. VAT-registered persons deduct the VAT paid on their inputs from the VAT charged on their sales and account for the difference to the tax authorities.
Corporate income tax
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Headline CIT rate (%)
(CIT) rates
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18
Corporate income tax
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CIT return due date
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CIT final payment due date
-
CIT estimated payment due dates
(CIT) due dates
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Quarterly returns are due within 40 calendar days following the last day of the reporting quarter, but the deadline for submitting a fourth quarter CIT returns (on a quarterly reporting period basis) is 60 calendar days after the reporting year end. Annual returns (on a year reporting period basis) are due within 60 calendar days following the last day of the reporting year.
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Taxes payable assessed on the basis of tax returns are due within ten calendar days following the deadline for filing the relevant tax returns.
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NA
Personal income tax
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Headline PIT rate (%)
(PIT) rates
-
18
Personal income tax
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PIT return due date
-
PIT final payment due date
-
PIT estimated payment due dates
(PIT) due dates
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30 April
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31 July
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NA
Value-added tax
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Standard VAT rate (%)
(VAT) rates
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20
Withholding tax
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WHT rates (%) (Div/Int/Roy)
(VAT) rates
-
Resident: NA; Non-resident: 15 / 15 / 15
Capital gains tax
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Corporate capital gains tax rate (%)
-
Individual capital gains tax rate (%)
(CGT) rates
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Capital gains are subject to the standard CIT rate of 18%.
-
Taxable as ordinary income.
Net wealth/worth
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Headline net wealth/worth tax rate (%)
Tax Rates
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NA
Inheritance and gift
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Inheritance tax rate (%)
-
Gift tax rate (%)
Tax Rates
-
Taxable as ordinary income (exemption from taxation under conditions may apply).
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Taxable as ordinary income (exemption from taxation under conditions may apply).