Taxation system in Ukraine

Corporate income tax (CIT)

18%

Single Social Tax (SSC)

22%

Income Tax (ITAX)

18%

Value added tax (VAT)

20%

Simplified taxation system in Ukraine

Simplified taxation system in Ukraine gives the right not to pay a lot of taxes and fees that makes the bookkeeping easier. The simplified tax system (single tax) can be used both by individual entrepreneurs and resident legal entities. According to changes from 2016 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 volume of income during the year does not exceed UAH 300k. 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 and the amount of income does not exceed 1.5 million UAH, 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 – an individual entrepreneurs and legal entities which amount of income does not exceed 5 million UAH. 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, agri producers, whose share of agricultural commodity production for the previous tax year is equal to or greater than 75%. The tax rate - 0.16 - 5.4% of the normative monetary value (depending on the type of land).