Business taxes in Ukraine
General taxes in Ukraine are Corporate Profit Tax and Value Added Tax. Additional taxes and fees may apply or the rates may differ depending on the area of business.
The Corporate Profit Tax is paid on the territory of Ukraine by:
• Resident legal entities, legal entities of any type established on the territory
of Ukraine, except for the budgetfunded institutions, non-profit entities, institutions, organisations and legal entities which apply simplified tax system.
• Non-resident legal entities, i.e. legal entities established under the laws of other states, drawing their income from the Ukrainian sources (except for institutions and organizations with diplomatic privilege or immunity under international treaties).
• Permanent establishments of nonresidents that draw their income from the Ukrainian sources or act as agents (representatives) or act otherwise in respect of such non-residents or their founders.
Legal entities which apply general tax system pay only corporate income tax at the following rates:
· The basic rate is 18% of income;
· Special rate - 0% or 3% of income (for insurers depending on the type of insurance).
The simplified tax system is characterized by simpler tax accounting rules and less risk of sudden inspections than in the general system, so it is more attractive to taxpayers. All legal entities in the simplified taxation system automatically fall into the third group of single tax payers.
· basic rate - 5% of turnover;
· if the legal entity is a voluntary VAT payer - 3% of the turnover.
The amount of annual revenue for legal entities under the simplified taxation system may not exceed UAH 5 million.