Ukraine

Residents are taxed on their worldwide income, subject to the restrictions set forth by any applicable DTT.

Non-residents are subject to Ukrainian tax only in respect of their Ukrainian-source income (this, for example, includes income received by the individual from their employer, either resident or non-resident, in relation to employment exercised in Ukraine) or, under conditions, investment profit from operation with non-Ukrainian investment assets if the issuers own Ukrainian subsidiaries.

The same tax rates generally apply to tax residents and non-residents (with certain exceptions).

Personal income tax rates

The standard tax rate of 18% applies to income received as salary and other benefits under employment and civil agreements, foreign income, and other income not covered elsewhere.

Taxable income received from abroad is subject to a tax rate of 18%, with some exceptions.

The 18% rate also applies to all passive income (e.g. interest, dividends, royalties, investment profit), unless specified otherwise by a special article (see the Income determination section). Dividends paid by resident CIT payers (except mutual investment institutions) are taxed at 5%. Dividends paid by non-residents, mutual investment funds, and non-payers of CIT in Ukraine are taxed at 9%. Dividends that are 'not ordinary dividends' are taxed like salary (i.e. at 18%).

Income earned by tax non-residents from sources in Ukraine should be subject to tax under the same order and rates as those for tax residents, unless otherwise specified by the Tax Code.

Military tax rates

A temporary 1.5% military tax on personal income was introduced in August 2014. This is effective until the reformation of the Ukrainian Military Forces is completed. The completion should be confirmed by the respective decision of the Parliament.

Tax base for the military tax is the same as for PIT (with some exceptions) and is not capped.

Ukrainian employers and other tax agents are responsible for tax withholding. Military tax from income not withheld by a tax agent should be payable on a self-assessment basis within the deadlines for PIT.