Taxation

Corporate Income Tax (CIT)

The standard corporate income tax rate in Ukraine is 18%. It applies to the taxable profits of Ukrainian-resident companies and non-resident companies operating through a permanent establishment in Ukraine.

Value Added Tax (VAT)

The standard VAT rate in Ukraine is 20%. VAT is applicable to the supply of goods and services within Ukraine, as well as imports and certain export transactions. There are also reduced VAT rates of 7% and 0% applicable to specific goods and services.

Personal Income Tax (PIT)

Personal income tax in Ukraine is progressive, with rates ranging from 5% to 20%. The tax applies to employment income, rental income, capital gains, and other types of personal income.

Social Security Contributions

Employers and employees are required to contribute to the social security system in Ukraine. The rates and calculation basis for social security contributions vary depending on the type of social insurance.

Property Tax

Property tax is levied on the value of real estate properties owned by individuals and legal entities in Ukraine. The rates and calculation methods may vary across different local jurisdictions.

Excise Tax

Excise tax applies to certain goods, such as alcohol, tobacco, fuel, and vehicles. The tax rates vary depending on the type of product.

Withholding Tax

Ukraine imposes withholding tax on certain types of income paid to non-residents, such as dividends, interest, royalties, and certain service fees. The rates may vary based on tax treaties or domestic regulations.

Transfer Pricing

Ukraine has transfer pricing rules that require related-party transactions to be conducted at arm's length prices. Companies engaging in cross-border transactions with related parties should ensure compliance with transfer pricing regulations.

Tax Incentives

Ukraine offers various tax incentives to attract investment and promote specific industries. These incentives may include reduced tax rates, exemptions, or tax holidays, and are subject to specific eligibility criteria and conditions.

Reporting and Compliance

Ukrainian taxpayers have obligations to file tax returns, maintain proper accounting records, and comply with reporting requirements. Failure to meet these obligations may result in penalties or other legal consequences.