According to the National Fiscal Service, the advance corporate income tax on dividends, according to sub-par. 57.1, note 1, 2, par. 57.1, note 1, article 57 of the Tax Code of Ukraine, is not collected in the case of the dividends paid:
- for the benefit of corporate stakeholders of the parent company, in the amounts not exceeding the company’s revenues received as dividends from other persons. If the amount of dividends paid to corporate stakeholders of the parent company exceeds the amount of dividends received by such company, then dividends paid in excess shall be taxable in compliance with the rules set out in sub-par. 57.1, note1.2, par. 57.1, note 1, article 57 of the Tax Code of Ukraine.
For tax purposes, the parent company has to make accounting for cumulative dividends received from other persons and dividends paid for the benefit of corporate stakeholders of the company, and recognize dividends in the tax reporting in the manner specified by the central executive body that drafts and implements the national tax and customs policy;
- dividend income is exempt from income tax, under the provisions of this Code, in the amount of income exempted from tax in the period the dividends are paid;
- individuals.
The said exceptions in the general procedure are set out in sub-par. 57.1, note 1.3, par. 57.1, note1, article 57 of the Tax Code of Ukraine.
According to sub-par. 57.1, note1.4, par. 57.1, note1, article 57 of the Tax Code of Ukraine, dividends (including non-residents) on shares or calculated in accordance with the corporate rights, are paid to individuals having a privileged or another status and entitled to get dividends or fixed amount that is greater than payments (corporate law) based on shares issued by the said taxpayer, what is treated, for tax purposes, as salary payment taxable, accordingly.
Meantime, such payment is not taxed differently from dividends, under the provisions in chapter IV of the Tax Code of Ukraine.
Collective investments are exempt from income tax in advance in case of dividend payments.
