Ukraine

Individual - Deductions

Last reviewed - 30 June 2022

Personal deductions

A registered resident taxpayer may claim a so-called ’tax deduction’ from the annual taxable income for a limited amount of documented expenses paid to Ukrainian institutions in the reporting year for the expenses described below.

The total deduction may not exceed the amount of taxable income received in the form of salary (in practice, salary received from Ukrainian tax agents). Amounts not deducted from the income of the reporting year cannot be carried forward. All expenses should be properly documented.

Charitable contributions

Donations to registered Ukrainian charities and not-for-profit organisations are deductible in an amount that is not higher than 4% of the taxpayer's taxable income. For the tax year 2022 a tax incentive (refund) increased from 4% to 16% and shall be provided on cash contributions or value of property transferred by a taxpayer as donations or charitable contributions to not-for-profit organisations.

Education expenses

Education expenses include the pre-school, extracurricular, school, secondary professional, or higher education of a taxpayer and his/her family members (i.e. spouse, parents, children) or guardians and fiduciaries, including parents-educators, in Ukrainian institutions. The total amount of the tax deduction charged to the taxpayer in the reporting tax year may not exceed the amount of the annual general taxable income of the taxpayer calculated as a salary.

Insurance premiums

Limited premiums for voluntary long-term life insurance or non-state pension insurance for the benefit of a taxpayer and their immediate family members (i.e. spouse, parents, children) are deductible. For 2022, the deductible amount is limited to UAH 3,480 per month for a taxpayer. Limit for the payment related to the taxpayer's immediate family members is half of the above monthly limit.

Mortgage interest expenses

A limited amount of interest on a qualified mortgage is deductible, provided it is used to finance the acquisition of a taxpayer’s ’main place of residence’ (i.e. the apartment/house where the taxpayer is registered).

Business deductions

Private entrepreneurs registered under the general tax regime may deduct business expenses and depreciation charges, subject to the rules established by the Tax Code.