Consumption taxes

Nature of the tax

Podatok Na dodanu Vartist (PDV).

Tax rate

20%

Reduced tax rate

A zero tax rate applies to exports and international transportation services, books and notebooks for students, goods for disabled people, authorized medicines and medical instruments, as well as other goods that the government declares to be essential.

Other consumption taxes

Excise tax on alcohol, tobacco products, petrol and some other fuels, jewelry and luxury articles.

Corporate taxes

Tax rate

Tax rate for foreign companies

Foreign companies in the Ukraine are taxed on the same basis as Ukranian companies.

Capital gains taxation

Capital gains are treated as ordinary income and taxed at the standard corporate tax rate of 25%.

Main allowable deductions and tax credit

Most expenses incurred relative to the activities of the company are deductible for tax purposes. However, some expenses such as contract penalties are not deductible.

Other corporate taxes

- Tax on pollution (variable rate);
- Tax on royalties, and rents relative to natural resources (variable rate);
- Property tax (variable rate).

Individual taxes

Tax rate

Allowable deductions and tax credit

There are deductions for donations to Ukrainian charities, for professionals of secondary and higher education and their families. Also for insurance premiums - long term voluntary life assurance, and self-funded retirement schemes.

Special expatriate tax regime

Expats / nonresidents individuals are subject to a 30% on their revenues from Ukrainian sources.

Double taxation treaties

Countries with whom a double taxation treaty have been signed

See the list of treaties signed by Ukraine

Withholding taxes

Dividends: 15%, Interest: 15%, Royalties: 15%. These rates may be lower in the case of a tax treaty with Ukraine.

Bilateral agreement

Sources of fiscal information

Tax Authorities

State tax administration of Ukraine

Ukraine Customs

Other domestic resources

PriceWaterhouseCoopers report on taxation in Ukraine