Three different tax rates
Earlier today, on the 1st of May 2014, a progressive income tax for individuals was introduced in Ukraine, says Law № 1166-VII On Prevention of Financial Disaster and Creation of Preconditions for Economic Growth in Ukraine.
Pursuant to the law, three tax rates are being introduced: base rate of 15% - if income amounts to around UAH 500 thousand, 20% - if income makes up nearly UAH1 million, and 25% - if income exceeds UAH 1 million.
«If the taxable base in the year under review does not exceed 204 minimum wages, the rate will be 5%; if the taxable base in the taxable year under review exceeds 204 minimum wages, but is not higher than 396 minimum wages, the rate of 20% is applied to the excess amount. If the taxable base in the year under review exceeds 396 minimum wages, the rate of 25% for the excess amount is used», - says the Law.
These rates cover all unearned income, including other sources, in particular, dividends, interest, royalty, investment receipts. However, this tax is not levied on salary income.
