Unified social contribution (USC)
The USC basic rate (the contribution of a company that pays employment income/remuneration under civil agreements to individuals) is 22% of the gross remuneration.
The taxable base subject to the USC is capped per individual per month. Starting from 2018, the cap is set at 15 times the minimal wage set for the respective month (e.g. UAH 90,000 starting from January 2021 and UAH 97,500 for December 2021). For 2017, the cap was set at 25 times the subsistence minimum set for able-bodied individuals. From 1 January 2017 till 30 April 2017, the cap was UAH 40,000 per month; from 1 May 2017 till 30 November 2017, the cap was UAH 42,100 per month; from 1 December 2017 till 31 December 2017, the cap was UAH 44,050 per month.
The minimal USC contribution is 22% of the minimal wage set as of the 1st day of the month of the salary payment (e.g. UAH 3 6,000 starting from January 2021 and UAH 6,500 starting from December 2021).
Value-added tax (VAT)
As of 30 December 2020, there are three VAT rates: 20%, 7%, and 0%.
The rate of 20% applies to almost all transactions subject to VAT except specific transactions subject to 7% and 0% VAT.
The reduced rate of 7% applies to supply and import of registered medicines and specific medical goods, as well as medicines, medical goods, and medical equipment allowed to be used in clinical trials. Starting from 1.01.2021 it would be also applied to several services of culture, tourism and creative industries.
The 0% VAT rate applies to the export of goods and some other specific transactions.
Recently 14% VAT rate for certain agricultural goods was adopted by the Parliament. The bill has yet to be signed by the Chairman of the Parliament and the President of Ukraine, and should enter into force after it is published.
See the Other taxes section in the Corporate tax summary for more information on VAT.
Net wealth/worth taxes
There are no net wealth/worth taxes in Ukraine.
Inheritance, estate, and gift taxes
There is no gift or inheritance tax in Ukraine. However, income received as an inheritance or gift is subject to PIT at the following rates:
- 0% if received from a resident’s family members (spouse, child, parent, brother/sister, grandparent, and grandchild).
- 5% if received from resident testators/donor other than those mentioned above.
- 18% if received from or by a non-resident testator/donor, irrespective of the relations with such testator/donor.
In addition, a stamp duty is payable by individuals, both Ukrainian and foreign nationals, on transfers of certain properties (e.g. real estate, cars) located/registered in Ukraine, whether the transfer is by way of gift or through inheritance.
Real estate tax (RET)
Starting from 1 January 2015, almost all residential and non-residential property owned by individuals are subject to RET.
The tax base is determined based on the size of the total area of a real estate asset. There is a specific partial RET exemption for residential property for individuals, whereby the first 60 square metres for flats or 120 square metres for single residential dwellings are not subject to RET. Local governments may provide additional exemptions. Exemptions do not apply to assets (i) that exceed more than five times the area of potential exemption and/or (ii) used to generate income.
The RET rate is set by local governments but generally cannot exceed 1.5% of the minimal salary set of the 1st January of the reporting year per square metre (for 2020, the maximum is UAH 70.85 per square metre, for 2021 - UAH 90).
If the taxpayer has one or more residential properties with the total area of one asset being more than 300 square metres (for an apartment) or 500 square metres (for a house), the amount of calculated tax will be increased by UAH 25,000 per year for each such asset.
The tax must be paid by individuals within 60 days upon receipt of a tax assessment issued by tax authorities.
Tax non-resident individuals are allowed to rent out their property located in Ukraine only through Ukrainian tax agents.