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Ukraine

Taxes

If you are thinking to incorporate in Ukraine, this article will educate you on the tax laws for a LLC which is the most common legal entity in Ukraine.

Ukraine taxes resident companies on their worldwide income. The usual rate for offshore income, from our research, but seek professional advice, is 18%. Ukraine may not have exemptions to bring in income earned abroad. Taxes are lower than average in Ukraine as the highest corporate income tax rate is 18%. This ranks Ukraine as 62th overall in terms of corp. taxation rate internationally.

The value added tax (VAT) rate is 20.00%, which ranks Ukraine as 134th overall with regards to VAT globally. In terms of other taxation, an employer will contribute 22% to the equivalent of a social security fund, and employee will not have to contribute. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 100hours. Contributing to this is the number of yearly labor tax payments, which is 1 in UA.

Thin capitalization laws aren't in effect. This refers to any sort of laws on a business and the debt-to-asset ratios. Dividends received by a resident company from another resident company are not included in taxable income. Dividends received from a foreign entity are subject to Corporate Income Tax. A dividend is payments of a company profit, passed by by the board, to a particular class of shareholders. Dividends can be either stock, cash, or property. Capital Gains are subject to Corporate Income Tax. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 15%. This should be interpreted usually that the relevant tax authorities expects relevant legal entities to automatically withhold 15% of interest payments to non-residents, unless certain interest such as from loans to residents or interests in Eurobonds, which are taxed at a reduced rate of 5%. The dividends withholding tax rate is 15%. This means that the taxman expects to automatically withhold 15% of offshore payments on dividends. The royalties withholding tax rate is 15%. Which means that the tax authorities expects legal entities to pay tax on 15% of royalty payments to non residents. Withholding tax rates may be reduced under a tax treaty.

There is a tax on net wealth in Ukraine. There are inheritance and real property taxes in Ukraine. There are no frequently implemented credits for innovation spend that include tax incentives in this country.

The above is not tax or legal advice for your specific situation. We are able to refer you to an accountant in Ukraine who can answer all your questions. Ready to get started? Click the free consultation button above.

Country details

Ukraine
UAH
Kyiv
Europe
Ukrainian, ru-UA, rom, Polish, Hungarian
45,415,596

Tax treaties

Country Type Date Signed
China DTC  1995-12-04
United States DTC  1994-03-04
Mexico DTC  2012-01-23
Algeria DTC  2002-12-14
Tajikistan DTC  2002-09-07
Kazakhstan DTC  1996-07-09
India DTC  1999-04-07
Spain DTC  1985-03-01
Iran DTC  1996-05-22
Netherlands DTC  1995-10-24
Belgium DTC  1996-05-20
Norway DTC  1996-03-07
Moldova, Republic of DTC  1995-08-29
Lebanon DTC  2002-04-22
Portugal DTC  2000-02-09
Azerbaijan DTC  1999-07-30
Cuba DTC  2003-03-27
Indonesia DTC  1996-04-10
Turkey DTC  1996-11-27
Austria DTC  1997-10-16
United Arab Emirates DTC  2003-01-22
Hungary DTC  1995-05-19
France DTC  1997-01-31
Korea, Republic of DTC  1999-09-29
Belarus DTC  1993-12-24
Ireland DTC  2013-04-19
Syrian Arab Republic DTC  2003-06-05
Brazil DTC  2002-01-16
Jordan DTC  2005-11-30
Denmark DTC  1996-03-05
Russian Federation DTC  1995-02-08
Egypt DTC  1997-03-29
Lithuania DTC  1996-09-23
Montenegro DTC  2001-03-22
Singapore DTC  2007-01-26
Luxembourg DTC  1997-09-06
Former Yugoslav Republic of Macedonia DTC  1998-03-02
Kyrgyzstan DTC  1997-10-16
Uzbekistan DTC  1994-11-10
Kuwait DTC  2003-01-20
Switzerland DTC  2000-10-30
Estonia DTC  1996-05-10
Morocco DTC  2007-07-13
Israel DTC  2003-12-26
Turkmenistan DTC  1998-01-29
United Kingdom DTC  1993-02-10
Thailand DTC  2004-03-10
Armenia DTC  1996-05-14
Iceland DTC  2006-11-08
Slovakia DTC  1996-01-23
Georgia DTC  1997-02-14
Japan DTC  1986-01-18
Germany DTC  1995-07-03
Latvia DTC  1995-11-21
Finland DTC  1994-10-14
Poland DTC  1993-01-12
Mongolia DTC  2002-07-01
Italy DTC  1997-02-26
South Africa DTC  2003-08-28
Pakistan DTC  2008-12-03
Cyprus DTC  2012-11-08
Canada DTC  1996-03-04
Sweden DTC  1995-08-14
Serbia DTC  2001-03-22
Croatia DTC  1996-09-10
Saudi Arabia DTC  2011-09-02
Greece DTC  2000-11-06
Libya DTC  2008-11-04
Slovenia DTC  2003-04-23
Viet nam DTC  1996-04-08
Bulgaria DTC  1995-11-20
Czech Republic DTC  1997-06-30
Romania DTC  1996-03-29

Tax treaties Map

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Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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