Tax systems

BASIC TAXES IN UKRAINE AND THEIR RATES

• Corporate income tax 18%

• Single social contribution 22%

• Personal Income Tax 18%

• Value Added Tax (VAT) 20%

Military fee 1.5%

SIMPLIFIED TAX SYSTEM

The simplified system of taxation in Ukraine gives the right not to pay many taxes and fees, which facilitates accounting. The simplified taxation system (single tax) can be applied by both entrepreneurs and legal entities. According to the changes, the simplified tax system in 2016 is divided into four groups:

Group 1 - individual entrepreneurs who do not use the work of hired persons exclusively carry out retail sale of goods from trading places in the markets and carry out economic activities for providing household services to the population whose income does not exceed 300 000 hryvnias during the year. Single tax is up to 10% of the minimum wage + Single social contribution is 22% of the minimum wage.

Group 2 - individual entrepreneurs who employ no more than 10 employees and whose income does not exceed 1.5 million hryvnias they perform production and sale of goods and services, including the ones in the field of household activity to the single tax payers and population. Single tax amounts to 20% of the minimum wage and single social contribution is 22% of the minimum wage for each employee.

Group 3 - individual entrepreneurs and legal entities whose income does not exceed UAH 5 million. The number of employees is unlimited. Single tax is 3% of received if VAT is paid or 5% without VAT and single social contribution is 22% of the minimum wage for each employee.

Group 4 - legal entities, agricultural producers, in which the share of agricultural production in the previous tax year is equal to or exceeds 75%. The tax rate is 0.16 - 5.4% of the normative monetary value (depending on the type of land).

Useful links:

• Kalush City Council
• State Fiscal Service of Ukraine