Corporate Tax in Ukraine
- Tax Base For Resident and Foreign Companies
- Foreign companies in the Ukraine are taxed on the same basis as Ukranian companies.
|Corporate income tax||25%|
|Surtax on proceeds from advertising services rendered by nonresidents in Ukraine||20%|
- Tax Rate For Foreign Companies
- Foreign companies are taxed on all their revenue from Ukrainian sources, and on their profits obtained from a permanent representation in Ukraine.
- Capital Gains Taxation
- Capital gains are treated as ordinary income and taxed at the standard corporate tax rate of 25%.
- Main Allowable Deductions and Tax Credit
- Most expenses incurred relative to the activities of the company are deductible for tax purposes. However, some expenses such as contract penalties are not deductible.
- Other Corporate Taxes
- Tax on pollution (variable rate);
- Tax on royalties, and rents relative to natural resources (variable rate);
- Property tax (variable rate).
Country Comparison For Corporate Taxation
|Ukraine||Eastern Europe & Central Asia||United States||Germany|
|Number of Payments of Taxes per Year||135.0||41.7||11.0||16.0|
|Time Taken For Administrative Formalities (Hours)||657.0||313.9||187.0||215.0|
|Total Share of Taxes (% of Profit)||55.5||41.2||46.8||48.2|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
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Many unfortunate companies have experienced an inspection by the Ukrainian tax authorities, and most of them did not know what to expect, their legal rights, or the possible results.
Frishberg & Partners on 7 Mar 2013 related to Corporate Tax in Ukraine
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