Corporate income tax (CIT) applies to taxable profits earned by resident entities in Ukraine and abroad and non-residents with a PE in Ukraine. Resident entities are taxed on their worldwide income. Non-resident entities are taxed on their Ukrainian-source income.
Ukraine's standard CIT rate is 18%.
WHT, at a rate of 15%, applies to the majority of income payments for non-residents, unless an exemption is given under a double taxation treaty (DTT). Ukraine has 74 effective DTTs in place. At the same time, Ukraine has also signed and ratified the MLI. Thus, if Ukraine and another country choose to apply the MLI to their DTT, the provisions of the MLI will prevail over the provisions of the DTT. See the Withholding taxes section for more information.
Special CIT rates for insurance and gambling activities
In addition to 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.
Organisation of lotteries is subject to a 26% rate in 2019 (28% rate in 2020, 30% rate starting from 1 January 2021); operating of gambling machines is subject to a 10% rate; and an 18% rate applies to bookmaker 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).