Tax on personal income

Income in accordance with the provisions of the Tax Code is the total taxable income from all activities received (accrued) during the period in cash, tangible or intangible as in Ukraine, its continental shelf in the exclusive (maritime) economic zone, as beyond its borders.

The object of taxation of resident is:

• total monthly (annual) taxable income;

• income originating in Ukraine, which ultimately taxed when it is provided (payments);

• foreign income – income (profit) received from sources outside Ukraine.
The object of tax of non-residents is:

• total monthly (annual) taxable income originating in Ukraine;

• income originating in Ukraine, which is ultimately taxed when it is provided (payments).

The tax rate is 15 percent of the taxation object except the following cases:

1) the tax rate is 5 percent of the taxation object charged as:

- interest on current or deposit (savings) bank account;

- interest or discount income on personal savings (deposit) certificate;

- interest on deposit of the credit union member from credit union;

- income that is paid by a company that manages the assets of a collective investment of available assets in accordance with law;

- income on mortgage securities (mortgage bonds and certificates) in accordance with law;

- income as interest (discount) received by the owner of the bonds from the issuer in accordance with law;

- income for a certificate of real estate fund and income received by a taxable person as a result of redemption by the manager of such funds to real estate in the manner specified in the prospectus certificates;

- income as dividends;

- income in other cases directly specified by the relevant provisions of the Code.

2) the tax rate is 30 percent of the object of taxation charged as a win or prize (except the win in public and private lottery and the win of player (member) received from the organizer of gambling) in favor of residents or nonresidents.

Exceptionally, cash prizes in sport competitions are taxed at 15 percent.

The tax rate is 10 percent of taxable income in the form of miners’ salary – workers who mine coal, iron ore, ores of nonferrous and rare metals, manganese and uranium ore, mine building enterprise workers.

If the taxable income as wages in a calendar month exceeds tenfold of the minimum wage prescribed by law at 1 January of the tax year, the amount of such excess is applied rate of 17 percent.

During calculating income as wages, taxable object is defined as a calculated amount of such wages, reduced by the sum of single contributions to state social insurance premiums to the accumulation fund and also at the amount of tax benefits.

Tax Code established that the payment of income for individuals to persons who carry out these payments, there is responsibility as for charging and transferring the budget from tax revenues.