Taxes General taxation system of Ukraine consists of state and local taxes and dues.
The main state taxes and dues
- Company Income Tax (25%).
Subject to taxation is company's income. Income of tax payer, including companies founded at property of individual physical entity, is taxed at the rate of 25% to the object of taxation.
- Personal Income Tax (15%)
Tax payers are: residents, who receive income on the territory of Ukraine and foreign incomes; non-residents, who receive income on the territory of Ukraine.
- Value Added Tax (20%)
Tax rate makes 20% and is added to price of goods (works, services). VAT is paid by all legal entities, annual sales of which are over 300.000 UAH.
- Land Tax
Payment for land usage is carried out in form of land tax or rent charge, that are defined according to monetary value of land.
- Excise Tax
Excise tax is indirect tax on excisable goods (for example, alcohol, beer, tobacco goods, cars, petrol etc) that is included to prices for these goods.
Local taxes and dues
In accordance with the Law of Ukraine "On taxation system", local taxes and dues are obligatory payments which are introduced and abrogated by the body of local self-government on the territory of certain administrative-territorial unit and are added to its budget. To such payments belong municipal tax, advertisement charge, market duty, charge for use of local heraldry and others.
Single Tax
Along with the general taxation system, a simplified system exists, which is based on the payment of the Single Tax.
According to Ukrainian legislation, a company can pay the Single Tax, provided that the number of employees is up to 50 and sales proceeds do not exceed 1 million UAH. If the requirements are met, the company may choose one of the following tax rates: 6% rate of the sum of sales proceeds with VAT payment; 10% rate of the sum of sales proceeds without VAT payment. |
