TAXATION SYSTEM IN UKRAINE

 Main taxes in Ukraine and tax rates

  • Corporate income tax (CIT): 18%;
  • Value added tax (VAT): 20%;
  • Single Social Tax (SSC):  22% of the wage fund;
  • Income Tax (ITAX): 18% of the employed staff wages;
  • Property tax: up to 2% per m² of the minimum wage;
  • Land tax: from 1 to 12% of the land normative monetary assessment.

Simplified taxation system in Ukraine

The simplified tax system (single tax) can be used both by individual entrepreneurs and resident legal entities. The simplified tax system in Ukraine is divided into four groups:

  • Group 1 – individual entrepreneurs who do not use hired labour:
    • exclusively retail goods from trading places on markets and conduct business activity to provide public services;
    • the amount of income during the year does not exceed UAH 300 thous.

The single tax rate is up to 10% of the minimum wage + social contribution tax 22% of the minimum wage.

  • Group 2 – individual entrepreneurs who employ less than 10 persons:
    • the amount of income does not exceed UAH 1.5 mln;
    • that conduct business activity to provide public services, including household (to single tax payers and population);
    • production and sale of goods, restaurant business activity.

The single tax rate is up to 20% of the minimum wage + social contribution tax 22% of the minimum wage for each employee.

  • Group 3 – individual entrepreneurs and legal entities::
    • the amount of income does not exceed UAH 5 mln;
    • unlimited number of employees.

The single tax rate is 3% of income and VAT payment or 5% without VAT + social contribution tax 22% of the minimum wage for each employee.

  • Group 4 – legal entities, agricultural producers, whose share of agricultural commodity production for the previous tax year is equal to or greater than 75%.

The tax rate is 0,16 – 5,4% of the normative monetary value (depending on the land type).