As of January 1, 2015, the amendments to the tax law of Ukraine and some of its regulations dated December 28, 2014, No 71-VIII became active.
As of January 1, 2015, the amendments to the tax law of Ukraine and some of its regulations dated December 28, 2014, No 71-VIII became active. The changes include reduction of a number of taxes from 22 to 11.
As of January 1, 2015, the amendments to the tax law of Ukraine and some of its regulations dated December 28, 2014, No 71-VIII became active.
The changes include reduction of a number of taxes from 22 to 11. Among the remaining taxes are:
Federal:
- Corporate income tax;
- Personal income tax;
- Value added tax;
- Excise tax;
- Environmental tax;
- Rental fee;
- Customs duty.
State:
- Property tax;
- Single tax.
Local:
- Fee for vehicle parking;
- Tourist tax.
There are special provisions for small and medium businesses with regard to a single taxation and taxation of dividends. According to the new tax regulations, there are four categories of single tax payers. The first or the second category now includes only individuals. The fourth category now includes the agricultural producers who previously paid a fixed agricultural tax. Therefore, foreign investors fall under the third category.
Commercial entities can be included in the third category only if their annual income doesn’t exceed 20 million Hryvnia.
The tax rate for the third category has been amended as follows:
- 4% of income, if a business entity doesn’t pay value added tax (VAT), and
- 2% of income, if a business pays VAT.
The tax rate for the dividends has been changed as well. Currently, the rate is not 5% as it was prior to 2015; however, the updated rates are as follows:
- 20% for those who pay a single tax, and
- 5% for those who pay income tax.