Income tax

The object of taxation in determining the income tax is:

• Income from Ukraine and from abroad, which is determined by reducing the amount of income during the reporting period by the cost of sold goods, performed work, rendered services and the amount of other expenses of the reporting tax period;

• also income (profit) from nonresident from Ukraine.

The tax rate on income tax gradually decreases and is:

• from 1 April 2011 to 31 December 2011 – 23%;

• from 1 January 2012 to 31 December, 2012  - 21%;

• from 1 January 2013 to

31 December, 2013 – 19 %;

• from 1 January 2014 – 16 %.

Declaration of income tax is filed and the tax authorities for the first quarter, half, three quarters of the year and cumulatively since the beginning of the year.

Tax Code establishes separate tax rules for handling payments in foreign currency transactions with related parties, dividends, securities transactions and corporate law, transactions with the assignment, implementation of joint activities without forming legal entities, operations and debt obligations to leasing (rental) for nonprofit institutions and organizations.