For our country, experiments with tax legislation have become commonplace. The latest changes were made at the beginning of 2016 when the new tax code was adopted. So how have taxes changed in Ukraine and what should taxpayers pay attention to in the first place?
Instead of last year’s income rates set at 15% and 20%, a new single base rate for all was adopted – 18%. Taxation of dividends remains the same – 5%.
The volume of maximum income for the year for taxpayers of the 3rd group has changed, which should not exceed UAH 5 million, simultaneously with an increase from 2 to 3% of the interest rate for organizations with VAT and from 4 to 5% for non-VAT payers. Also, the rates of single taxpayers of the 4th group were increased by 1.8 times and the application of the indicator coefficient of the normative monetary valuation of lands was canceled to establish the tax base for the same 4th group of taxpayers.
The rates of single taxpayers of groups 1 and 2 have not changed. They are up to 10% and up to 20% for each group, respectively. For group 3, the restriction on the number of employees was removed. Depending on the category of land and its location for the 4th group of taxpayers, the size of the single tax has changed per 1 ha of agricultural land.
For organizations, the compulsory advance payment for income taxation was canceled. Instead, they approved a law on quarterly reporting periods for organizations with a turnover exceeding UAH 20 million. The level of income tax remains within 18%, and by 2017 it will decrease by one percent. It is also prohibited to pay advance payments for this tax.
In the adopted legislation, enterprises have the opportunity to obtain an investment tax credit. It involves reducing the tax burden on organizations. The size of such a loan can reach 30% of the price of an individual tangible asset or their group, but not more than half of the tax liabilities for a specific reporting period.
Unified Social Tax
Taxes in Ukraine in 2016 suggest the upper limit for the transfer of a single social contribution in the amount of 25 minimum wages, that is, UAH 34,450. Let’s remind that earlier it was 17 minimum wages. In addition, a flat rate of ERUs was established, which is now 22%. Also, the collection of ERUs from the income of individuals has been canceled.
The new VAT refund system is focused on the transparency of the process. It provides uniform conditions for all taxpayers. The official publication of information from the register on reimbursed amounts, taxpayers, claims for reimbursement and their current state is introduced.
VAT refund rights have been restored for companies exporting grain and industrial crops. The conditions of the special tax regime for agricultural enterprises have also changed. Now the accrued VAT is distributed as follows – 75% of the total amount goes to the budget, and 25% remains at the disposal of the organization. It is planned to cancel this regime from the beginning of next year.
And so what taxes in Ukraine do we have at the output:
- Corporate income taxes – 18%;
- Personal income taxes – 18%;
- Taxation of dividends – 5%;
- Investment income taxation – 18%;
- ERUs – 22% paid by the employer and 0% by the employee;
- VAT – 20%;
- Military tax – 1.5%;
- VAT for pharmacists – 7%;
- VAT for farmers – animal husbandry (50% to the state budget and 50% to the special account), plant growing (except for vegetables and fruits – 85% to the state budget and 15% to the account), vegetables and fruits (50% to the state budget and 50% to the account);
- Real estate tax – no more than 3% for a tax-free minimum for each square meter = 41.34 sq.m., 25 thousand UAH for apartments with an area of more than 300 sq.m. and houses over 500 sq.m .;
- Transport tax – is 25 thousand UAH for a car worth more than 1.03 million UAH, but not older than 5 years;
- Simplified taxation system – groups 1 and 2 (10-20% of minimum wages + 422.65 ERUs), group 3 (3% of income with VAT, 5% of income without VAT), group 4 (0.16-5.4% of monetary estimates of 1 hectare of land, depending on its type).