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What taxes must individuals in Ukraine pay?

Какие налоги должен уплачивать физическое лицо в Украине?

Every individual who is a resident of Ukraine must be aware of the taxes they are required to pay, what these taxes are for, and the amounts involved. Otherwise, the tax authorities have the right to hold such individuals accountable. This is highlighted in a publication by the legal portal Protokol.

Let's start with the definition of a "resident." A resident individual is a person who:

  • is a citizen of Ukraine;
  • has a place of residence in Ukraine;
  • permanently resides in another country but has closer personal or economic ties (center of vital interests) in Ukraine (for example, the permanent residence of family members or their registration as a business entity);
  • is present in Ukraine for at least 183 days (including the day of arrival and departure) during a tax year or periods thereof (this point applies when it is impossible to determine the individual's permanent residence and center of vital interests).

If you fall under at least one of these categories, you are considered a resident and thus a taxpayer. If your tax agent is another individual or legal entity (employer) that has already paid the taxes listed below, you, as an individual, do not need to declare and pay the corresponding taxes. However, if an individual has multiple sources of income, and consequently different taxes on them, all types of income received during the reporting tax period (calendar year) must be declared together, and only those taxes that have not yet been paid need to be settled.

Personal Income Tax (PIT)

This tax applies to all types of income listed that are received by a resident individual. In the vast majority of cases, a general PIT rate of 18% on the taxable amount is applied. There are also special rates of 9%, 5%, and 0%. The PIT rate of 18% is applied, in particular, to the following:

  • wages and all other payments under an employment contract;
  • scholarships;
  • amounts of excess expenses received for business trips or reporting that were not returned within the established timeframe;
  • income derived from leasing, renting, or subleasing property;
  • investment income from the taxpayer's operations with securities, derivatives, and corporate rights;
  • income from the sale of scrap metal (except for income from scrap metal sold to the National Bank of Ukraine);
  • various types of winnings or prizes (except for lottery winnings) in favor of residents or non-residents, including in lotteries;
  • various types of interest (from deposits, cashback);
  • royalties;
  • income from the sale (exchange) during the reporting year of the 3rd (and subsequent) object of movable property (passenger car, motorcycle, moped);
  • inheritance received by any heir from a non-resident testator, and the object of inheritance inherited by a non-resident heir;
  • foreign income.

The PIT rate of 9% is set for income in the form of dividends on shares and/or investment certificates, corporate rights accrued by non-residents, investment institutions, and business entities that are not profit tax payers. The PIT rate of 5% is applied, in particular, if it involves:

  • dividends on shares and corporate rights accrued by residents who are profit tax payers (excluding income from shares and/or investment certificates paid by investment institutions);
  • income from the sale during the reporting tax year of more than one of the immovable properties specified in paragraph 172.1 of the Tax Code, as well as income from the sale of real estate not specified in paragraph 172.1;
  • income from the sale (exchange) during the reporting year of 2 objects of movable property (passenger car, motorcycle, moped);
  • the value of any inherited property received by heirs who are not family members of the testator in the 1st and 2nd degree of kinship.


The PIT rate of 0% applies, in particular, if it involves:

  • the value of property inherited by members of the testator's family in the first and second degrees of kinship;
  • the value of property inherited by a person with a disability of the 1st group or who has the status of an orphan or a child deprived of parental care, as well as the value of property inherited by a child with a disability (with exceptions);
  • monetary savings deposited before January 2, 1992, in the institutions of the Savings Bank of the USSR and the state insurance of the USSR operating in Ukraine, or in state securities, and monetary savings of citizens of Ukraine deposited in the institutions of the Savings Bank of Ukraine and the former Ukrgosstrah during 1992-1994, which have not been redeemed.

Unified Social Contribution (USC)

The USC is set at 22% of the received income (wages, income from entrepreneurial activity, temporary disability benefits, maternity and parental leave benefits). This contributes to your experience that will be considered when retiring. Depending on the type of income, the USC is paid either by the individual themselves or by their tax agent (for example, the employer). The amount of the USC has its limits. The minimum USC cannot be less than the minimum insurance contribution and cannot exceed the USC rate for 15 minimum monthly wages. The USC rates for 2024 are as follows:

  • Minimum USC from January 1 to March 31, 2024: 1,562 UAH.
  • Minimum USC from April 1 to December 31, 2024: 1,760 UAH.
  • Maximum USC from January 1 to March 31, 2024: 23,430 UAH.
  • Maximum USC from April 1 to December 31, 2024: 26,400 UAH.

Military Tax (MT)

This tax is levied on nearly all income of resident and non-resident individuals (there are a few exceptions, primarily concerning the monetary allowances of military personnel and others equated to them). The only difference is that until December 1, 2024, the military tax was 1.5%, and from December 1, 2024, it will be 5%.

Property Tax

The property tax consists of: 1) tax on immovable property, excluding land plots, 2) transport tax, and 3) land payment.

Real Estate Tax

The taxpayers of this tax are individuals and legal entities, including non-residents, who own residential and/or non-residential real estate. The tax is calculated based on the total area of the residential and non-residential property, including its parts. The tax rate shall not exceed 1.5% of the minimum wage established by law as of January 1 of the reporting (tax) year, per square meter of taxable base. The tax rate is determined by the local self-government authority (local, city district, village, or settlement council). However, this tax is not charged if:

  1. the apartment(s) (regardless of their number) have an area of up to 60 square meters;
  2. the residential house(s) (regardless of their number) have an area of up to 120 square meters;
  3. in the case of simultaneous ownership of apartment(s) and residential house(s) (including their parts) by the taxpayer, if the total area is up to 180 square meters.

Transport Tax

Taxpayers of the transport tax are individuals and legal entities, including non-residents, who own passenger cars registered in Ukraine according to current legislation. The tax applies to passenger cars that are not older than 5 years (inclusive) and have an average market value exceeding 375 times the minimum wage established by law as of January 1 of the tax (reporting) year. The tax rate is set at 25,000 UAH per each passenger car subject to taxation for the calendar year. The State Tax Service of Ukraine must send a tax notification-decision regarding the payment of the amount(s) of the tax along with a detailed calculation of the amount(s) of the tax and relevant payment details by July 1 of the year of the base tax (reporting) period (year).

Tourist Tax

The tourist tax is actually paid through hotels, hostels, and tourist bases (they act as your tax agents).

Land Payment

This is a mandatory payment collected in the form of land tax (charged from land plot owners and land shares, as well as permanent land users) or rent (charged concerning land owned by the community and the state). The tax base is either a) the normative monetary valuation of the land plot taking into account the indexation coefficient, or