Ukrainia Country Profile taxation trade issues

Ukrainia

TAXES - ACCOUNTING

Corporate tax

Tax rate for resident companies	25%

Tax rate on long-term capital gains	Capital gains are imposed in Ukraine at the rate of 30%.

System governing groups of companies and dividends paid by subsidiaries to their parent companies	The dividends withholding tax rate is 15% if distributed to a non resident company.

Tax rate on branches	In Ukraine, foreign branches are taxed for the corporate tax in the same way as the residents companies.

Income tax

Fiscal year	The fiscal year begins on January 1st and ends on December 31st of the same year.

Income tax rate	Marginal rate for residents: 0% to 40% Marginal rate for non-residents: 0% to 20% The rate is progressive and shared out into 6 brackets .

VAT rates

Standard rates	20%

Reduced rates	There is a zero rate applying to exports and international transportation services.

Other important taxes

Name of tax	Rate
Road tax	1,20%
Tax on innovation capital	1%

Accounting

Introduction
The Ukrainian accounting system has been influenced by the soviet model for a long time.
Nevertheless, Ukraine makes more and more efforts to change and remove all former procedures to obtain a complete independence.
In 1998, the current accounting system has been reformed. Ukraine wants to comply with the international accounting practices.
This period of transition is marked, notably, by the training of new accountants who could be able to apply the new rules. Nevertheless, some companies still use the former accounting soviet system.

General accounting principles
The Ukrainian accounting rules are very complex in terms of taxes.
Accounting, in Ukraine mixes tax system and financial accounting.
The accounting system becomes more and more complex because the authorities promulgate a more and more complex tax system.

Certification and auditing
The external control of accounts must be given o a body of auditors chosen by the company.
There is also the Association of Chartered Accountants and Auditors of Ukraine.

Professionals and representative organizations
The chamber of audit.

Useful links

For further information, please contact the State tax Administration of Ukraine.

Last modified in 2006 - ongoing update