Ukraine

Corporate income tax (CIT) applies to taxable profits earned by resident entities in Ukraine and abroad and non-residents with a permanent establishment (PE) in Ukraine. Resident entities are taxed on their worldwide income. Non-resident entities are taxed on their Ukrainian-sourced income.

Ukraine's standard CIT rate is 18%. Starting from 2024, the general CIT rate for the banks is increased to 25%.

Withholding tax (WHT) at a rate of 15% applies to the majority of passive income payments to non-residents, unless an exemption or reduced rate is provided under a DTT. Ukraine has 71 effective DTTs in place.

Please note that Ukraine denounced its DTTs with Russian Federation in May 2022 and with Belarus in November 2022, which have since ceased to be in force.

In 2019, Ukraine ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). Thus, if Ukraine and another country choose to apply the MLI to their DTT, the provisions of the MLI should modify the provisions of the DTT. See the Withholding taxes section for more information.

Special CIT rates for insurance and gambling activities

Insurance activities

In addition to the general CIT at the 18% rate, insurance companies also pay special CIT of 0% and 3% on their income. Long-term life insurance premiums, insurance premiums under voluntary pension programmes, and voluntary medical insurance premiums are subject to the 0% rate; the 3% rate applies to all other insurance premiums (excluding reinsurance contributions, premiums, and payments) received by the insurance company. Such amounts of CIT due at 0% or 3% reduce the CIT base of an insurance company, which is subject to the standard 18% rate.

Gambling activities

Organisation of lotteries is subject to an additional CIT at a 28% rate in 2020 and 30% rate for the period starting from 1 January 2021; operating of gambling machines is subject to a 10% rate; and an 18% rate applies to bookmakers and other gambling activities (including casinos). Contrary to CIT for insurance companies, amounts of CIT of 10% or 18% paid from gambling income do not reduce taxable profit of a company engaged in gambling activities (standard 18% rate is applied to the full amount of the taxable profit).

Local income taxes

No CIT is levied at the regional or local level, except simplified (unified) tax (see the Tax credits and incentives section for a description of simplified [unified] tax).