As taxes rise in Ukraine to 2017

When brought together meager harvest primitive farmer approached his kinsman more powerful, with club at the ready, and asked him if he wanted to share — it was a time of lawlessness, anarchy and robbery. And when this division was transformed into something systematic and absolutely inevitable — that is, taxes — and then came the state, civilization and order. For millennia, the best state minds worked on the invention and improvement of the taxes, so it is impossible to enumerate all the achievements in this field. Taxes were on the air and the dust on the Windows and on the chimney, sparrows and baths, a shadow on the sun, the toilets and the lack of it, for the beard and the ears, sex and childlessness on bribes and dental treatment…

In the modern world of such creative diversity is not so welcome. All the official requirements to share addressed to a citizen, usually relate to his current income and/or available to the property (e.g., real estate). What it looks like in Ukraine with the current version of the Tax code helped us to understand the International lawyer law firm Alexander Kachura.


“As for the estate tax, the 2017 change is not provided, — said Alexander Kachura. — Recall: the need for tax applies to both citizens of Ukraine and foreigners who have owned real estate in Ukraine. Taxed as residential property (apartment, house), and residential”.

The tax rate for real estate objects are established by the decision of local authorities, but in an amount not exceeding 3% of the minimum wage (that is, not more than 96 UAH), established by law on 1 January of the reporting (tax) year, per 1 sq. m.

Also provides for reduction of the tax base:

  • for apartment/apartments regardless of their number — by 60 square meters;
  • for a residential house/houses regardless of their number — by 120 square meters;
  • for different types of residential properties, including their parts (in case of simultaneous stay in the property taxpayer apartments/flats and residential house/houses, including their parts) — 180 sq. m.

EARTH. The tax rate for the land, normative monetary evaluation of which shall equal not more than 3% of the assessment. And for farmland and land for General use — not more than 1%.

Exempt from tax the following groups of individuals: people with disabilities first and second groups; individuals having three and more children under the age of 18 years; pensioners (on age); war veterans and persons covered by the law of Ukraine “On status of war veterans, guarantees of their social protection”; individuals, recognized by law, persons who suffered as a result of the Chernobyl disaster.

Exemption from payment of tax for the land applies to one plot for each type of use within the boundary of rules for maintaining personal country economy — no more than 2 hectares; for construction and maintenance of residential houses, commercial buildings and structures (subsidiary plot): in villages — no more than 0,25 hectares, in villages — no more than 0.15 hectares; in cities — not more than 0.10 hectares; for individual country construction — no more than 0.10 hectares; for construction of individual garages — no more than 0.01 hectares; for the conduct of gardening — no more than 0.12 ha.


The vast majority of cases, our income is taxed at the rate of 18%. For example, you accrued good places for our salary of 10 thousand UAH. Then the income tax will be RS 1800. Plus don’t forget the war tax of 1.5% — that is, in this case, 150 UAH. Thus, you will receive 8050 UAH.

Such simple scheme works almost always, but there are some exceptions. For example, income from the sale of the property or object of unfinished construction is taxed at a rate of 5%. The same share will have to pay the state for the sale of movable assets.

Magic rate of 5% occurs in some cases: for example, it is subject to the cost of any inheritance, if it does not inherit family members first-degree relatives. The same applies to gifts from individuals. And the same 5% you pay as tax on dividends on shares and corporate rights, which you get from companies working on the common system of taxation (if the enterprise does not pay income tax, you take the familiar 18%).

ACCORDING TO THE RULES. Income tax the nice thing is that most of us are not tense for paying it. Moreover — in fact, does not even notice this process. For us with the budget is our employer. Moreover, if you are receiving income only from tax agents (that is, those who must withhold and transfer to the budget the respective taxes), you and annual filing a Declaration is not necessary.

By the way, the withholding agent is not only the employer: it can be a Bank or credit Union that pays you interest on the contribution, the company on whose shares you get dividends. It may be the tenant of your land or other property, if it is a legal entity. But if your property rents simple physical person who is not the subject of economic activities, for calculation and payment of tax responsible personally you. It is necessary to pay every quarter, within 40 calendar days after the last day of the reporting quarter. And in this case, the amount received during the year income and tax paid should be reflected in the annual tax return.

Different types of income may have its own peculiarities of calculation and payment of tax. Sometimes there’s nothing complicated, and you have little chance to do something wrong. For example, if you sell the apartment should be taxed, you will not forget to remind, neither the realtor or notary. Moreover, the notary has no right to “sanctify” a deal without the presence of the appraised value of your apartment. But there are types of income, the taxation of which is rich in nuances. For example, if you seriously want to make money on the investment activities, be sure to have an hour and read the relevant sections of the Tax code.