Ukraine

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 106,500 starting from 1 January 2024, UAH 120,000 starting from 1 April 2024). 

The minimal USC contribution is 22% of the minimal wage set as of the first day of the month of the salary payment (e.g. UAH 1,562 starting from 1 January 2024, UAH 1,760 starting from 1 April 2024).

Consumption taxes

Value-added tax (VAT)

As of 1 January 2024, there are four VAT rates: 20%, 14%, 7%, and 0%.

The rate of 20% applies to almost all transactions subject to VAT except specific transactions subject to 14%, 7%, and 0% VAT.

The rate of 14% applies on transactions for the import and supply of certain agricultural products (products of plant origin, such as corn, soybeans, sunflower seeds, and certain other goods) in Ukraine.

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. It is also applied to several services of culture, tourism, and creative industries, air transportation of passengers and cargo within Ukraine, and supply of tickets to sporting events of international and Ukrainian level.

The 0% VAT rate applies to the export and re-export of goods and some other specific transactions (basically, it is a mechanism for providing exemption with credit).

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 (180 square metres for different types of immovable property). 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 on 1 January of the reporting year per square metre (for 2020, the maximum is UAH 70.85 per square metre; for 2021, the maximum is UAH 90 per square metre; for 2022, the maximum is UAH 97.50; for 2023, the maximum is UAH 100.50 per square metre; for 2024, the maximum is UAH 106.50 per square metre).

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.

Transport tax

A local transport tax is charged on owners of passenger cars with an average market value exceeding 375 minimal salaries as of 1 January of the reporting year (i.e. UAH  2,662,500 for 2024) and less than five years old.

The Ministry of Economic Development and Trade of Ukraine is required to publish (on an annual basis, before 1 February of the reporting year) on its website a list of vehicles that are subject to the transportation tax (including brand, model, year of production, engine displacement, fuel type).

A tax of UAH 25,000 for each car per year should be paid by the car owner.