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:
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.
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:
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:
The PIT rate of 0% applies, in particular, if it involves:
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:
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%.
The property tax consists of: 1) tax on immovable property, excluding land plots, 2) transport tax, and 3) land payment.
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:
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).
The tourist tax is actually paid through hotels, hostels, and tourist bases (they act as your tax agents).
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