If you are interested in establishing a Ukrainian company, our experts have prepared an overview on company formation in Ukraine to provide all the necessary information about local forms of business, registration process and requirements.
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The Labor Code is the main law that governs employment relationships of all workers and the labour law in Ukraine. Its main purpose is to ensure a good work productivity, improvement of work quality, increase efficiency and ensure a good relationship between employees and their employers.
According to the current legislation of Ukraine, there are four ways to exercise the right to work and provide services as an individual:
Residents do not need to obtain a work permit, but they must be of legal age. Minors are allowed to work with parental permission only if they are over 14 years old and the work does not interfere with their studies.
Non-residents have the same labour rights as Ukrainian nationals. However, to be employed, a non-resident needs to obtain a work permit from the State Employment Service, issued for a specific position and a specific period, depending on the foreigner’s category and the duration of work. After obtaining a work permit, a non-resident can obtain a residence permit. The permit may be extended an unlimited number of times, provided there are valid grounds for its renewal.
When signing an employment contract, a person must provide a passport or another form of ID, as well as their employment record book (if they have one) or employment history from the State Register of Compulsory State Social Insurance. Depending on the job, additional documents may be required by law, such as proof of education, health certificates, military registration papers, or others.
For Ukrainian citizens, the employer is required to check their military registration documents during hiring or training. People who are conscripts, liable for military service, or reservists can only be officially employed or trained after being registered with the local recruitment and social support centre, the Security Service of Ukraine, or the relevant intelligence agency unit.
According to the labour law of Ukraine, we can identify the following types of employment contracts:
This is a contract between an employee and an employer. The employee agrees to do the work outlined in the contract, while the employer agrees to pay for the work and ensure proper working conditions, following labour laws, any collective agreements, and the company’s internal rules.
A fixed-term employment contract is used when a long-term employment relationship isn’t possible—either because of the nature of the work or due to personal reasons of the employee (such as family circumstances). The length of employment is clearly stated in the contract.
Starting from July 19, 2022*, employers are required to inform employees working under fixed-term contracts about any job openings that match their qualifications and offer the possibility of a permanent (indefinite) contract. Employers must also ensure that these employees have equal opportunities to apply for and sign such contracts.
*According to Law No. 2352 of 01.07.2022, which applies during martial law in accordance with the Law of Ukraine ‘On the Legal Regime of Martial Law’. Most provisions of this law will stop being in effect once martial law ends, except for part three of Article 13 and Article 15 of this Law, the articles relating to payments by the state that carries out military aggression against Ukraine of monetary amounts lost as a result of armed aggression related to labour relations.
Seasonal work is a type of fixed-term employment established for a specific period, which, due to natural or climatic factors, cannot be carried out throughout the year but only during a particular season or period not exceeding six months. The industries and types of work considered seasonal are determined by the List of Seasonal Work.
Temporary work is another form of fixed-term employment contract, which can be concluded for up to two months. If the purpose is to replace an employee who is temporarily absent but retains the right to their position, the contract may last up to four months. The grounds and duration for entering into such contracts are clearly defined.
This contract establishes employment for an indefinite number of hours, without guaranteeing continuous work. The employee is only required to perform tasks specified in the contract if and when the employer provides such work. While the employer does not guarantee ongoing assignments, all terms regarding remuneration must still be observed.
Remote work allows the employee to carry out their duties outside the employer’s premises, at any location of their choosing, while using information and communication technologies. In this arrangement, the employee is responsible for managing their own working hours and is not bound by the employer’s internal labour regulations, unless otherwise specified in the employment agreement.
When working under a home-based employment contract, the employee performs their duties from their place of residence or another location of their choosing. This location must have a designated workspace and the necessary technical equipment, including tools, devices, inventory, or a suitable combination, required for producing goods, providing services, or performing tasks. Unless the employment contract states otherwise, home-based employees follow the standard working hours set by the enterprise, institution, or organisation.
An employment contract must contain the following information:
identification details of the employer and employee
type of work
job duties
term of the agreement/contract
place of work
remuneration corresponding to the type of work (salary*)
working hours, days off, and entitlements to additional leave
probationary period
benefits, compensation, additional guarantees, etc.
notice period for termination of employment
* The minimum wage in Ukraine from 01.01.2025 is 8000 UAH (approx. 165 EUR)
Prior to starting employment, the employer must clearly inform the employee – using any mutually agreed method in accordance with Law No. 2352 of 01.07.2022 – about the following matters:
The employer must notify the employee of changes to the essential terms and conditions of employment no later than two months in advance (part 3 of Article 32 of the Labour Code). The law establishes a minimum two-month notice period so that an employee who does not agree to work under the new conditions can find another job.
If martial law is in effect, the two-month advance notice period for changes to essential working conditions – required under normal circumstances – does not apply when such changes result from adjustments in production or labour organisation. Instead, according to part 2 of Article 3 of the Law of Ukraine No. 2136-IX “On the Organisation of Labour Relations under Martial Law” of 15.03.2022, it is sufficient for the employer to notify employees of these changes simply prior to their implementation.
A probationary period may be included in an employment contract by mutual agreement between the employer and the employee. This period allows the employer to assess whether the employee is suitable for the position, in accordance with Article 26 of the Labour Code.
Under Ukrainian law, the probationary period must not exceed 3 months, unless otherwise specified. In certain circumstances, and with the consent of the primary trade union organisation, this period can be extended up to 6 months (Article 27 of the Labour Code). For certain categories of employees, such as technical or production staff, the probation period cannot be longer than 1 month.
During martial law, employers have the right to establish a probationary period for any category of employee, as provided by part 2 of Article 2 of the Law of Ukraine No. 2136-IX “On the Organisation of Labour Relations under Martial Law” of 15.03.2022.
According to the current labour law of Ukraine, employment may be terminated on the following grounds:
The employee’s reasons may be different (their own desire, as well as valid reasons, e.g. moving, starting studies at an educational institution, retirement, pregnancy, caring for a child under 14 years of age or a child with a disability, and other reasons).
Effective from 19.07.2022, several new grounds for dismissal have been introduced:
In addition, starting from 19.07.2022, the following nuances regarding dismissals apply:
Effective from 19.07.2022, several specific provisions regarding dismissal are in effect:
These provisions are enforced in accordance with Law No. 2136 of 15.03.2022.
On the day of termination of the employment contract, the employer is obliged to fulfil all their obligations and make all payments to the employee, including compensation for the unused vacation days.
Together with a copy of the dismissal decree, the employer shall provide the employee with a written notice of the amounts accrued and paid to them upon dismissal and make an entry in the employment record book.
An employee may initiate a labour dispute by submitting an application directly to the court within three months from the date when they became aware, or should have become aware, of a violation of their rights. In cases of dismissal, the employee has the right to file a claim with the court within one month after receiving a copy of the dismissal decree. If the dispute concerns payments due upon dismissal, this period is extended to three months from the date the employee receives written notification of the amounts accrued and paid upon termination.
If an employee wishes to resign, they must provide their employer with 14 calendar days’ notice before their intended resignation date. However, under martial law, if the company is located in an area affected by hostilities and the employee’s life and health are at risk, the employer is required to process the resignation within the timeframe stated in the resignation letter. Alternatively, if both the employer and employee agree, the resignation may occur on a mutually decided date.
In the case of dismissal for valid reasons (according to the Labour Code of Ukraine), the employer must terminate the employment contract within the period requested by the employee.
In the event of mass dismissal (reduction in the number of staff), employees are personally notified of the forthcoming dismissal at least two months in advance, or three months in advance if the Trade Union is present.
The suspension of an employment contract occurs when the employer temporarily halts the provision of work and the employee stops fulfilling their work duties, due to military aggression against Ukraine which makes it impossible for both parties to meet their obligations under the employment contract.
Suspension of the contract can be initiated by either the employer or the employee, but it may only last for as long as martial law is in effect. If the employer decides to end the suspension before martial law is officially lifted or cancelled, they are required to notify the employee at least 10 calendar days before the employee is expected to return to work.
This is a special form of cooperation with experts that combines the features of an employment contract (due to social guarantees) and a civil law contract. Under a gig contract, a specialist is not hired, but invited to a specific project, where he or she completes the tasks assigned within the set timeframe.
A gig contract is a type of civil law agreement in which a gig specialist agrees to carry out work or provide services based on the assignments given by a Diia City resident as the customer. The Diia City resident company is responsible for paying for the completed work or services and for providing the gig specialist with suitable conditions and the social guarantees outlined in Section V of the Law “On Stimulating the Development of the Digital Economy in Ukraine”.
A civil law contract is a special form of service provision where the terms of cooperation are governed by the Civil Code of Ukraine and not the Labour Code.
In a civil law contract, a contractor agrees to perform specific work or provide a service, while the client accepts the completed work and pays for it. The contract focuses on the final result rather than the process. Both parties act independently and equally. The client is not responsible for providing working conditions, a workplace, equipment, or sick leave. The contractor organises their own work and is accountable for finishing it on time.
22% of the accrued salary is the Unified Social Contribution.
This percentage applies to wages that are less than 25 subsistence minimums. If the wage is more, the amount left is not taxed.
The subsistence minimum for an able-bodied person is set at 6,700 UAH (approx. 135 EUR) starting from January 1, 2022.
On November 28, 2024, the President signed the Law of Ukraine ‘On Amendments to the Tax Code of Ukraine on Peculiarities of Taxation during the Period of Martial Law’ No. 4015-IX of 10.10.2024, which increased the military tax rate from 1.5% to 5%. The rate for military personnel remained at 1.5%.
18% of the accrued salary is the income tax rate.
The standard workweek consists of 40 hours, evenly distributed over five days. However, employers may establish a six-day workweek, in which case employees must not exceed seven working hours per day.
Additionally, on the day preceding a national holiday, the duration of the working day is reduced by one hour.
*The changes from 19.07.2022. provide that:
Normal working hours during martial law may be increased to 60 hours per week for employees of critical infrastructure facilities (defence, public utilities, etc.).
During the period of martial law, the provisions on holidays and non-working days (Article 73 of the Labour Code) do not apply.
Effective from July 30, 2023, the Law of Ukraine ‘On Amendments to Article 73 of the Labour Code of Ukraine’ removed Christmas Day celebrated on January 7 as a public holiday and introduced new dates for some of the holidays:
Some categories of employees are entitled to work fewer hours per week. For employees working in hazardous conditions, the working week is limited to 36 hours.
At the request of an employee due to their valid personal circumstances and at the initiative of the employer, part-time work may be established. Pregnant women, women with a child under 14 or a disabled child, and those caring for a sick family member based on a doctor’s recommendation are guaranteed to the ability to work a short day or week with a proportional change in salary.
Flexible working hours are a type of labour arrangement that permits a work schedule different from the standard internal regulations. In this case, employees must still comply with established working time limits – whether daily, weekly, or over another accounting period such as a month, quarter, or year. Flexible working hours allow employees to perform their duties in the office, remotely, or from home.
Unfixed working hours are a form of labour organisation that does not set a specific time for work. An employee is obliged to perform work only when the employer provides such work, as stipulated in the employment contract. The relevant conditions are fixed and agreed upon in the employment contract.
For employees called up for military service, the law obligates employers to retain their position and job during their period of service.
In accordance with the current legislation of Ukraine, there are several types of vacation:
basic annual leave
additional annual leave (for those who work in harmful and difficult working conditions, for a specific nature of work or in other cases provided for by law)
additional study leave
creative leave
social leave:
Unpaid leave:
The frequency of annual leave is determined in accordance with schedules prepared at the beginning of the year, which consider the interests of both the employer and the employee.
Employees are entitled to at least 24 calendar days of annual leave for each year of work.
In their first year of employment, full annual leave – both basic and additional – may be granted after completing six months of continuous service with the company. However, employees requiring additional social protection can receive their full annual leave entitlement before completing this six-month period.
If an employee who does not need additional social protection has worked for less than a year, their annual leave is calculated in proportion to the actual time worked. For instance, an employee earns two days of leave for each month worked, resulting in 24 days of leave over a full calendar year.
Employers also have the right to grant their employees longer annual leave.
Certain categories of employees are entitled by law to longer leave and the employer is obliged to provide it:
Employees who work irregular hours are entitled to an annual additional leave of 1 to 7 calendar days per year.
An employee may take a full or partial leave of absence, provided that the main continuous part of it is at least 14 working days.
Employees must receive their salary for the entire duration of their leave before the leave begins, unless a different arrangement is specified by law, employment contract, or collective agreement.
*The changes effective from 19.07.2022. provide that:
Starting from July 29, 2023, the Law of Ukraine ‘On Amendments to Certain Legislative Acts of Ukraine on Peculiarities of Using Maternity Leave’ provides that, in the absence of medical contraindications, a pregnant woman has the right to transfer the prenatal part of the leave to the postnatal period (starting from the day of delivery) in part or in full. The total duration of pregnancy and childbirth leave does not change.
On December 23, 2023, the following amendments were made in accordance with the Law of Ukraine ‘On Amendments to Certain Legislative Acts of Ukraine on the Regulation of the Granting and Use of Leave, as well as Other Matters’ No. 3494-IX:
The following categories of employees are entitled to leave that employers are required to provide:
Under certain circumstances, the employer is obliged to grant leave to:
Starting from April 3, 2024, the Cabinet of Ministers of Ukraine issued Resolution No. 356 of 29.03.2024, which amended the Procedure for Granting Parental Leave.
The document states that the right to such leave is confirmed by:
For family reasons and certain other reasons, an employee may be granted unpaid leave for a period agreed upon between the employee and the owner or their authorised representative:
The changes effective from July 19, 2022 include new provisions for employees during the period of martial law. If an employee leaves the territory of Ukraine or acquires a status of an internally displaced person, they can request an unpaid leave of absence. The employer is required to grant this leave for the period specified in the employee’s request, but it cannot exceed 90 calendar days. Importantly, the time spent on this unpaid leave will not be included in the employment record that counts towards the entitlement to annual basic leave, as outlined in paragraph 4 of part one of Article 9 of the Law of Ukraine ‘On Leaves’. The law does not provide for the employer’s right to refuse to grant such leave to an employee.
The most common employee benefits include:
Financial bonuses are added to the accrued salary and are taxed according to their type.
Such bonuses as professional trainings, language courses, company cars (used for business purposes) are considered company expenses and reduce the amount of taxes paid by the company.
Any personal (individual) bonuses are taxed in accordance with the accrued salary..
Key legislation regulating labour relations:
Our tax experts have prepared a 2025 tax calendar for Ukraine, in order for you to keep an eye on the main statutory filing obligations and related deadlines.
Missing a deadline can lead to penalties, but with Accace, you stay one step ahead. Our local experts offer tailored support for filings, planning and advisory, helping you meet every requirement in line with the Romanian tax calendar. Explore our full range of tax advisory and compliance services in Ukraine.
January 20
VAT
January 30
VAT
Land tax
Transport tax
February 9
Unified return on PIT & Social contribution
Unified return submission for the Q4 2024
February 20
VAT
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
Land tax
Transport tax
Submission of Tax Return for 2025
February 28
Corporate income tax
Quarterly CIT payers – CIT return submission
Annual CIT return submission for 2024
Land tax
March 3
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
March 10
Corporate income tax
Quarterly CIT payers – payment of CIT liability for previous calendar quarter
March 20
VAT
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
March 28
Land tax
March 31
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
April 21
VAT
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
April 30
VAT
Land tax
Transport tax
May 12
Corporate income tax
May 20
VAT
Corporate income tax
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
May 30
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
Land tax
June 20
VAT
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
June 28
Land tax
June 30
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
July 21
VAT
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
July 30
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
Land tax
Transport tax
August 11
Corporate income tax
August 20
VAT
Corporate income tax
Quarterly CIT payers – payment of CIT liability for previous calendar quarter
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
August 29
Land tax
September 1
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
September 22
VAT
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
September 30
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
Land tax
October 20
VAT
Monthly VAT payers – VAT return submission
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
October 30
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
Land tax
Transport tax
November 10
Corporate income tax
November 20
VAT
Corporate income tax
Quarterly CIT payers – payment of CIT liability for previous calendar quarter
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
November 28
Land tax
December 1
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
December 22
VAT
Unified return on PIT & Social contribution
Monthly Unified return submission 2025
December 30
VAT
Monthly VAT payers – payment of VAT liability for previous calendar month
Land tax
From March 1, 2022 to December 31 of the year following the year in which martial law to be terminated, land tax and rent for land plots of state and communal property are not paid in the territories:
Temporarily, for the 2022 and 2023 tax (reporting) years, the general minimum tax liability is not calculated and paid for land plots located in the territories where hostilities are (were) taking place or in the territories temporarily occupied by the armed forces of the Russian Federation, and/or for land plots identified by regional military administrations as littered with explosive objects and/or on which there are fortification structures.
The list of territories on which hostilities are (were) conducted or temporarily occupied by the armed forces of the Russian Federation is determined by the Cabinet of Ministers of Ukraine.
Our 2025 salary calculator for Ukraine is set for full-time employment and is meant for general information only. The calculation is done in Ukrainian hryvnia.
Our calculator has been set for simulation purposes only and might not include all the factors that determine the end salary, according to the Ukrainian labour code and regulations.
Accace is not responsible for the decisions of any person or entity taken based on the results of this calculator. Before taking any action, we recommend you consult a specialist in any matters related to salary, employee rights and employment in Ukraine.
If you are interested in establishing a Ukrainian company, our experts have prepared an overview on company formation in Ukraine to provide all the necessary information about local forms of business, registration process and requirements.
The Join-Stock Company is a business entity with a charter capital divided into a certain number of shares of the same value. The joint stock company not later than after six months since an emission of shares had been registered must provide Shareholders with shares (certificate of the shares).
The Join-Stock Company is not liable for the obligations of the shareholders.
The company may be created by establishment, merger, division, separation or transformation of the business (business) companies, public (state), municipal (public) and other companies in the corporation.
Full name of the company in the Ukrainian language must contain the business type (public or private) and legal form (joint stock company).
Joint stock companies are divided into:
The Limited Liability Company is the company which has the capital divided into shares, as determined by the constituent documents.
The maximum number of participants in a Limited Liability Company is not declared.
An Additional Liability Company is the company with an authorized (share) capital divided into shares, as determined by the constituent documents.
The members of the company are liable for its obligations by their contributions to the charter (share) capital, and at the failure of these amount additionally by their property. This amount is the same for all participants and it is relevant to the contributions of each participant.
The maximum liability of members is detailed in the constituent documents.
The General Meeting is the supreme governing body of the Joint Stock Companies, Limited Liability and Additional Liability Companies.
The executive bodies of the company, which provides management of its current activity, are board or other bodies, defined by statute. In a Limited and Additional Liability created by the executive body: Collegial (management) or sole (Director). Directorate headed by General Director. Members of the executive body may also be persons who are not members of the partnership.
The General Partnership is a company, whose members are engaged in joint business activities and liable for the partnership’s obligations with all their property.
The name of the company must contain the names (names) of all its participants, the words “full partnership” or contain the name (title) of one or more members with the addition of the words “and company” and the words “full partnership”.
A Limited Partnership is a company, where one or more members do business on behalf of the partnership and is/are responsible for the company’s obligations with all their assets. There are one or more members whose liability is limited by contribution in property companies (investors) and who do not participate in the activities of the company.
If the Limited Partnership involves two or more participants with full responsibility, they are jointly liable for the debts of the company.
Administration of the Limited Partnership can be made only by participants with full responsibility.
Administration of the General Partnership must be agreed with all participants.
A citizen recognized as an entity if it exercises the entrepreneurial activity with the state registration as an entrepreneur without legal entity status.
Foreign business entities that want to do business in Ukraine can open a branch of a foreign entity. For this, the foreign entity must fill in an application and submit it to the Ministry of Economy of Ukraine (or other Ministry depending on the type of business activity of the foreign entity), together with a request for registration of the representation composed in any form, where should be noted:
| The form of business |
Minimum capital (approx. in EUR) |
Number of shareholders |
|
| English | Ukrainian | ||
|
Public joint-stock company |
Публічне акціонерне товариство (ПАТ) |
200 amounts of minimum salaries on the date of registration: As of 01/01/2024 – UAH 1,420,000. (approx. EUR 34 700) As of 01/04/2024 – UAH 1,600,000. (approx. EUR 39 000) |
1 or more |
|
Private joint-stock company |
Приватне акціонерне товариство (ПрАТ) |
200 amounts of minimum salaries on the date of registration: As of 01/01/2024 – UAH 1,420,000. (approx. EUR 34 700) As of 01/04/2024 – UAH 1,600,000. (approx. EUR 39 000) |
1 or more |
|
Limited Liability Company |
Товариство з обмеженою відповідальністю (ТОВ) | NS | ND |
|
Additional Liability Company |
Товариство з додатковою відповідальністю | NS | ND |
|
General Partnership |
Повне товариство (ПТ) | NS | ND |
|
Limited Partnership |
Командитне товариство | NS | ND |
|
Individual/entrepreneur |
Фізична особа-підприємець | N/A | ND |
|
Representative office |
Представництво іноземного суб’єкта господарювання | N/A | 1 (not a shareholder, mother company) |
NS=not stated, ND=not declared
A Join-Stock, Limited and Additional Liability Company are established and are operating under the constituent documents, while the General and the Limited Partnership are operating under the foundation agreement.
The documents must contain at least the following information:
The founding contract of a General Partnership must include in addition to the conditions specified above also the following:
The founding contract of a Limited Partnership, in addition to the above conditions, must include:
The company acquires legal personality from the date of its registration. Under normal conditions, the incorporation time (registration procedure time) lasts 24 hours.
The state registration is conducted in the order prescribed by law for state registration of legal entities.
The company may open current and deposit accounts in banks and enter into contracts and other agreements only after its registration. Agreements concluded before the company registration deemed to be concluded with this company, only if it is approved after registration.
For registration of the legal entity the following documents are needed:
Ukraine’s standard CIT rate is 18%. Special rates apply to insurance and gambling activities.
ECT rate is 9%. It is a special tax regime for the residents of Diia City*
Rates for legal non-resident entities vary from 0% to 20% based on income type. Tax rates and taxable profit for permanent establishments are the same as for residence in Ukraine.
The standard PIT rate is 18%. This rate also applies to the taxable income received from abroad.
Standard VAT rate in Ukraine is 20% and is imposed on domestic sales of goods and/or services, imported goods or services.
A reduced rate of 7% is applied to supply and import of registered medicines and specific medical goods. For export of goods and other services defined by law, 0% rate applies under special conditions.
Provision of services to a non-resident are subject to 20% VAT or it can be considered as an outside the scope of VAT, depending on the place of supply.
*Related deadlines for taxpayers you may find in our 2024 Tax calendar for Ukraine.
Despite the difficult time for the Ukrainian economy, the country continues to have investment potential in the agribusiness sector, energy and IT sector.
The potential of IT industry in Ukraine is far from exhausted. Calculations show that the capacity of the industry is from $ 15 billion to $ 30 billion. At the same time the full potential of IT-industry will be able to open only because of one condition: Ukraine will encourage developers to generate ideas and create products here, “home” and not seek every opportunity to develop and resell themselves abroad.
Ukraine is also a major transport and transit hub, connecting Western and Eastern part of Europe, the Baltic and South-West Asia.
Foreign legal entities (individuals) can purchase and sale any real estate together with land (expect agricultural land) in Ukraine as well as get commercial benefit from their property and let it on lease, while paying due taxes. According to the applicable laws of Ukraine sale of agricultural lands is in moratorium until 2018.
Employers are liable to pay Unified Social Security Contributions. The social security contribution in Ukraine is 22% of the gross earnings (salaries and benefits paid to employees).
This percent is applied to salaries which are less than 25 subsistence minimums for able-bodied persons. If the salary is higher, then only the amount up to 25 subsistence level for able-bodied persons is taxable, while the rest is non-taxable.
The subsistence level for able-bodied persons in Ukraine is UAH 1,600 (approx. EUR 55) starting January 1st, 2017.
The 22% from gross salary is divided among different funds (unemployment fund, accident fund, pension contribution and temporary disability fund).
Applicable laws
Ukraine’s standard CIT rate is 18%.
There is an additional tax for insurance activity – 3% or 0% on the income of these companies. The contracts with term life insurance, a voluntary health insurance and insurance contracts within the non-state pension have the rate 0%.
Legal entities involved in gambling have to pay special CIT at 10%. The rate 18% can be applied to special gambling activity. This CIT paid from gambling income do not reduce taxable profit of a company engaged in gambling activities, so additionally they have to pay standard CIT 18%.
Rates for legal entities-non-residence pay CIT at 0%, 4%, 6%, 12%, 15% and 20% from their income (tax rates varies depending on type of income).
Tax rates and taxable profit for permanent establishments are the same as for residence in Ukraine.
Taxable income ̶ Taxpayers with an annual income exceeding UAH 20,000,000 have to use adjustments of the financial results for tax difference.
Taxpayers with an annual income that does not exceed UAH 20, 000,000 are allowed not to apply adjustments.
Tax period – The calendar year.
Tax returns and assessment ̶ companies with an annual income up to UAH 20,000,000 must perform the tax return for the whole calendar year until March 1st, 2017.
Companies with an annual income exceeding UAH 20, 000,000 must pay and perform tax returns quarterly. The complete list of deadlines for taxpayers you may find in our 2017 tax calendar for Ukraine.
Advance payments – companies that are quarterly payers must pay 2/9 CIT from the amount of three quarters income until the December 31st of the following year.
The standard PIT rate is 18% in Ukraine. This rate applies to (main):
This rate also applied to the taxable income received from abroad.
Starting from August 2014 1.5% military tax on personal income was introduced in Ukraine.
Standard VAT rate in Ukraine is 20% and is imposed on domestic sales of goods and/or services, imported goods or services.
Reduced rates
7% – this rate is applied to supply and import of registered medicines and specific medical goods.
0% – this rate is applied to the export of goods. Other services which are subject of 0% rate are an international transport services confirmed by a single international shipping document, toll manufacturing services if the goods are exported from Ukraine, etc.
Provision of services to a non-resident are subject to 20% VAT or it can be considered as an outside the scope of VAT, depending on the place of supply.
VAT payers must provide the report monthly until the 20th day of the month following the reporting month. Payment of VAT is made within 10 days from the end of the report’s submission, that is, as a rule, up to and including the 30th day.
The object of taxation for this tax is land plots owned or leased, as well as land shares that are owned. Land tax rates set by local councils. The rate of land tax depends on the category, location, and the existence of a state valuation for each particular land plot.
Starting January 1st, 2017, owners of cars which are not older than five years and with an average market value exceeding 375 minimal salaries as of January 1st of the reporting year (approx. EUR 40,000) must pay transport tax in amount UAH 25,000 for each car per year.
Payers of this tax are owners of objects of taxation on the territory of Ukraine: individuals, legal entities, non-residents.
Starting from January 1st, 2017:
Customs duty must be paid by the importer upon import of the goods into Ukraine. The rates are established by the Customs Tariff. Nowadays in Ukraine are two duty rates: relieved and full rates. Relieved rates are applied to goods from World Trade Organization (WTO) and some other countries.
This tax is applied for ethyl alcohol, alcoholic beverages, beer, tobacco and tobacco products, cars, car bodies, motorbikes, electricity, liquefied gas, petrol, diesel fuel, other fuel material and electric power. These goods can be imported or produced in Ukraine.
Ukrainian legislation divided the rates of the excise tax into three types:
Local authorities have the right to set rates of local excise tax, which are taxed by retail sellers of excisable goods. The rate of such excise is set at a rate of 2% to 5 % of the goods value.
Starting January 1st, 2013 until January 1st, 2023, IT companies that perform activities in Ukraine are exempted from VAT payments on operations of software products supply.
Software products are considered: the result of computer programming in the form of operating system, systemic, applied, entertaining and / or educational computer software (their components) as well as websites and / or online services; cryptographic data protection.
Beyond our free tax guideline for Ukraine, we’re ready to support you with hands-on expertise tailored to your business needs. Accace offers comprehensive tax advisory and tax compliance services in Ukraine to help you navigate local regulations, optimize your tax strategy, and stay fully compliant. Whether you’re entering the market or already operating in Ukraine, our local experts are here to make sure your tax matters are in good hands. Get in touch with us today!
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