Types of taxes in Ukraine

There are two types of taxes in Ukraine: national and regional.
National taxes and fees – taxes and fees, established by Tax Codex and are mandatory on the whole territory of Ukraine, except some taxes that are stated in the Codex. These taxes are:

  • corporate income tax – 19 % (16% from January 1st, 2014)
  • personal income tax – 15%
  • VAT – 20% (17% from January 1st, 2014)
  • excise tax
  • fee for 1st registration of vehicle
  • rent fee for oil and oil products transportation through pipelines on the territory of Ukraine
  • rent fee for oil and gas production in Ukraine
  • land fee
  • fee for specific usage of water
  • fee for specific usage of wood resources
  • fixed agriculture tax
  • national fee
  • fee for viticulture and gardening development

Regional taxes and fees – taxes and fees that are mandatory on appropriate territory communities according to the list of decisions of village and town municipal government.
Regional taxes are:

  • tax for real estate, everything but not land is established by municipal government only
  • single tax

Regional fees are:

  • fee for implementation of certain business activities
  • fee for parking vehicles
  • tourist fee

Ukrainian law provides several ways of paying taxes — common system of taxation, simplified tax system (flat tax), fixed agricultural tax and special trade patent. The effectivness of business and the amount of profit the company can get depends on the correct choice of tax method.

Of course, it is not simple to calculate the feasibility of using a particular system of taxation based only on tax rates. In order to optimize the taxation in Ukraine, it is needed to consider tax incentives, specific taxation of certain operations, form of payment that you plan to use with suppliers and customers, counterparties of the company tax system, and other factors.