Ukrainian taxes Prepared by Yuliya Bilous In

Ukrainian taxes Prepared by Yuliya Bilous

In Ukraine national and local taxes and fees are established. The national taxes and fees are mandatory for the whole territory of Ukraine. Local taxes and fees, set in compliance with the list and within the boundary rates of local, rural and municipal councils according to their mandates, are mandatory for payment on the territories of respective communities.

National Taxes and Fees: o corporate income tax; o personal income tax; o value added tax; o excise; o first registration vehicle tax; o environmental tax; o rent for transportation of oil and petroleum products through main pipelines and oilproducts pipeline, rent for transit of natural gas and ammonia through the territory of Ukraine; o rent for oil, natural gas and gas condensate produced in Ukraine; o tax for use of subsoil natural resources; o land tax; o fee for use of radio frequencies; o fee for special use of water; o fee for special use of forests; o fixed agricultural tax; o fee for development of horticulture, grape production and hop production; o customs fee;

Local Taxes and Fees Local taxes include: ütax on a real estate that is other than a plot of land; üflat tax. Local fees include: Øfees for certain types of commercial activities; Øparking fee; Øtourism fee;

CORPORATE PROFIT TAX the object of taxation shall refer to: • profit originating from Ukraine or from abroad, which is determined the amount of incomes in a fiscal period, reduced by the cost of production of goods sold, work performed, services rendered and other expenses in a fiscal period; • income (profit) of non-resident, originating from Ukraine. The base rate of the tax shall be 16 per cent

Personal income tax Taxpayers an individual resident receiving incomes both at source of their origin in Ukraine, and from abroad an individual nonresident receiving incomes at source of their origin in Ukraine fiscal agent Object of taxation total monthly (annual) taxable income; incomes from the source of their origin in Ukraine that are finally taxed during accrual (payment, provision) thereof; foreign incomes (profit) obtained from sources outside Ukraine.

The tax rate makes up 15 percent of the taxation base for incomes obtained, including, but not limited to, in the form of wages, other incentives and compensation payments or other payments and remunerations that are paid to the taxpayer in connection with labor relations, under a civil law contracts or in case of winnings in state and non-state cash lotteries, winning of a player (participant) received from the organizer of a game of chance.

Value Added Tax (VAT) was introduced in Ukraine in 1993. Since January 1, 2011 it has been administrated by the Ukrainian State Tax Administration in accordance with Chapter I and Chapter V of the Tax Code of Ukraine. Objects of taxation: the supply of goods, place of delivery which is located within the customs territory of Ukraine. the supply of services, place of delivery which is located within the customs territory of Ukraine the importation of goods (services) into Ukraine. export of goods (services) in the customs regime of export or reexport (hereinafter - exports) and supply services to the international transport of passengers and baggage and cargo by rail, road, sea, river and air transport.

The tax base is tax-payers‘ transactions of: а) providing goods whose place of provision is located on the customs territory of Ukraine including those of transferring the right of ownership to collaterals to the borrower (creditor), to the goods to be transferred under the terms of a credit against goods, and those of transferring an object of financial leasing to a leaser/leasee; b) providing services, whose place of provision is located on the customs territory of Ukraine; c) importing goods to the customs territory of Ukraine within the customs treatment of imports or reimports; d) exporting goods within the customs treatment of exports or reexports ; e) for the purposes of taxation with this tax, there shall also be comparable, to the exports, supply of goods that are in free circulation in Ukraine into the customs treatment of a duty free shop; g) supplying services of international transportation of passengers and baggages as well as cargoes by railway, motor, maritime and river, and air transport. The following tax rates shall be fixed based on the tax base: а) 17 percent; b) 0 percent.

EXCISE TAX Objects of Taxation: the sale of excisable commodities (products) manufactured (produced, extracted) in Ukraine the sale (transfer) of excisable commodities (products) for the own consumption, the industrial processing, the contribution to the authorised capital, and for own employees the importation of excisable commodities into the customs territory of Ukraine

The following shall be the excisable commodities: • ethyl alcohol and other alcohol distillates, alcoholic beverages, and beer; • tobacco products, tobacco and industrial tobacco substitutes; • petroleum products, liquefied petroleum gas; • passenger cars, their bodies, trailers and semi-trailers, motorcycles.

The tax rates shall be set in accordance with definitions provided in Section I of this Code: • ad valorem rates; • specific rates; • ad valorem and specific rates at the same time;

Tourism Duty "Tourism duty" shall be understood as a local duty, whose proceeds shall be credited to the local budget. Payers of the duty shall be citizens of Ukraine, foreigners and stateless individuals arriving into the territory of an administrative territorial unit subjected to the validity of a decision of a village, town or city council to impose the tourism duty, and obtaining (consuming) temporary (overnight) accommodation services with the undertaking to leave the place of stay by the specified time.

Duty taxable amount The value of the entire period of accommodation in places less the value added tax shall be the taxable amount for the purposes of this duty. The value of stay shall be exclusive of expenses on catering or amenity services (such as laundry, cleaning, repair and pressing of clothes, footwear or underwear), telephone bills, the execution of foreign passports, entry (exit) permits (visas), statutory insurance, interpretation and translation expenses, other documented expenses associated with the rules of entry. The rate shall be set at the level of 0. 5 to 1 per cent of the duty taxable amount.

In 2011, typical Ukrainian firm had to make 135 tax payments , spend 657 hours annually on tax compliance , and suffer a total tax rate of 57. 1 percent