INTERCONSULT

 

FIDUCIA • STABILITAS • FELICITAS

PC Intercosult

PC Intercosult
b. 104, Bazarnaya Str.
Odessa, Ukraine, 65020
Tel.:+380 48 798 7495

 

PC Intercosult

The president of the company
Dr. Gennadiy Trachuk
Tel: +38 068 259 01 44
E-mail: interconsult.ua@gmail.com
Skype: intreconsult_ua

The director of the company
Antonina Haliapina
Tel: +38 068 259 02 39
E-mail: haliapina@mail.ru

The leading expert
Vitaly Serbulenko
Tel: +38 093 6 444 777
E-mail: serbulenko@i.ua

Tax residence 

A natural entity is considered a resident if he has a residence place in Ukraine. In case the natural entity has the residence place, also, in a foreign country he is considered a resident if such an entity has the place of permanent residence in Ukraine; if the natural entity has the place of permanent residence, also, in a foreign country, he is considered resident if has close personal or economic ties (the centre of basic interests) in Ukraine. If it is impossible to identify the country in which the entity has the centre of basic interests, or if a legal entity does not have any place of permanent residence in any of the countries, he is considered resident if he stays in Ukraine not less than 183 days (including days of arrival and departure) during the period or periods of taxable year. 
Sufficient (but not exclusive) condition of basic interests centre identification place of the natural entity is the place of permanent residence members of his family or his registration as a subject of entrepreneurial activity. 
If it is impossible to identify the residential status of the natural entity, using preceding issues, the natural entity is considered resident if he is a citizen of Ukraine. 
If, regardless the law, the natural entity, citizen of Ukraine has citizenship of another country, then in order to perform the taxation, such an entity is considered the citizen of Ukraine, which does not have the right to tax credit paid abroad, stipulated by TCU or regulations of international contracts of Ukraine. 
Reasonable grounds for determining an entity to be a resident are independent determination by him the main residence place on the territory of Ukraine according to the rules determined by TCU or his registration as a self-employed individual. 
Non-resident is a natural entity which is not a resident of Ukraine. 

Individual income tax 

Tax payers are:

  • natural entity – resident which receives income both from its origin source in Ukraine, and foreign income;
  • natural entity – non-resident, which receives income from its origin source in Ukraine;
  • tax agent.

Non-resident, which receives income from its origin source in Ukraine and has diplomatic privileges and immunity, determined by current international contract of Ukraine as to the income which he receives directly from implementing diplomatic or equal to it such an international contract of activity. 

Object of taxation of the resident is:

  • general monthly (yearly) taxable income;
  • income from its origin source in Ukraine which is finally taxed at the moment of its charge (paying-off, providing);
  • foreign income - income (profits), received from the sources beyond the boundaries of Ukraine.

Object of taxation of the non-resident is:

  • general monthly (yearly) taxable income from its origin source in Ukraine;
  • income from its origin source in Ukraine which is finally taxed at the moment of its charge (paying-off, providing).

Tax assessment base 
Tax assessment base is the general taxable income. General taxable income is any income subjected to taxation, charged (paid off, provided), in favor of tax payer during accounting fiscal period. 
In case of right to tax abatement use, tax assessment base is net annual taxable income which is deined by general taxable income reducing by the tax discount/allowance sums of such fiscal year. 
Tax assessment base for incomes received from business or independent professional activities is net annual taxable income. 

Tax rates:
Tax rate makes 15 - 17 per cent. 



Duty on obligatory state social insurance 

The single tax payers on obligatory state social insurance are:

  • Employers:

o    enterprises, institutions and organizations, other legal entities, established according to the legislation of Ukraine, irrespectively of the form of ownership, business activity type, which use the labor of natural entities on the basis of the labor agreement (contract) or on other conditions, stipulated by the legislation, or on the basis of civil-law agreements (except civil-law agreements concluded with a natural entity – entrepreneur, if the executed works (rendered services) correspond with the activity type, stipulated in abstract from Unified State Register of Legal Entities and Natural Entities-entrepreneurs), including branches, representations, departments and other separate subdivisions of the mentioned above enterprises, institutions and organizations, other legal entities which have the separate financial statements and make settlements with insured individuals independently;

o    natural entities – entrepreneurs, especially those which use labor of other persons on the basis of labor agreement (contract) or on other conditions, stipulated by the legislation about labor, or on the basis of the civil-law contract (except the civil-law contract, concluded by the natural entity - entrepreneur, if the executed works rendered services) correspond with the activity type, stipulated in the abstract from Unified State Register of Legal Entities and Natural Entities-entrepreneurs);

o    natural entities, which provide themselves with work, as well as natural entities which use the labor of other people on the basis of the labor agreement (contract);

o    diplomatic representations and consular institutions of Ukraine, branches, representations, other separate subdivisions of enterprises, institutions and organizations (including international), established according to the legislation of Ukraine, which have the separate financial statements make settlements with insured individuals independently;

o    diplomatic representations and consular institutions of foreign countries, branches, representations, other separate subdivisions of foreign enterprises, institutions and organizations (including international), located on the territory of Ukraine;

o    enterprises, institutions and organizations, natural entities, which use hired labor, military units and bodies, which pay cash securities, help on temporary invalidity, help or compensation according to the legislation.

  • Employees – citizens of Ukraine, foreign persons (unless other is stipulated by international contracts, approval for which liability was granted by the Verkhovna Rada of Ukraine) and stateless persons who work:

o    at the enterprises, institutions and organizations, other legal entities, natural entities – entrepreneurs on the basis of labor agreement (contract) or on other conditions, stipulated by the legislation;

o    at natural entities which provide themselves with work, and at other natural entities on the basis of labor agreement (contract);

o    natural entities which perform works (render services) at the enterprises, in institutions and organizations, other legal entities, natural entities – entrepreneurs or entities which provide themselves with work, on the basis of civil-law contracts (except natural entities- entrepreneurs, if the performed works (rendered services) correspond to the activity types stipulated in the abstract from Unified State Register of Legal Entities and Natural Entities-entrepreneurs);

o    natural entities-entrepreneurs, including those, who chose the simplified taxation system, as well as family members of such persons, which take part in entrepreneurial activity performing;

o    individuals which provide themselves with work – perform their professional activity, namely, scientific, literature, artistical, artistic, educative or teaching, as well as medical practice, legal practice, including advocacy, notarial activities, or persons which perform religious (missionary) activity, other similar activity and receive income directly from this activity under condition that such persons are not employees or entrepreneurs;

o    citizens of Ukraine which work at diplomatic representations and consular institutions of Ukraine, located beyond the boundaries of Ukraine, branches, representations, other separate subdivisions of enterprises, institutions and organizations (in particular, international), established according to the legislation of Ukraine (unless other stipulated by international contracts, approval for which liability was granted by the Verkhovna Rada of Ukraine);

o    citizens of Ukraine and stateless persons which work at diplomatic representations and consular institutions of foreign countries, branches, representations, other separate subdivisions of foreign organizations (in particular, international), located on the territory of Ukraine;

o    individuals which work at the elective posts in government bodies, local government bodies, citizens associations and receive salary (reward) for work at such post;

o    workers of paramilitary units, mine rescue units irrespective of subordination, as well as military personnel of emergency rescue service, established according to the legislation a regular basis;

o    military men (except military men of forced military service), private corps and key personnel;

o    parents – house parents, adoptive parents, if they receive cash security according to the legislation;

o    individuals which receive aid on temporary disability;

o    individuals which проходять forced military service in Armed Forces of Ukraine, other military units established according to the law, Security Service of Ukraine, bodies of Ministry of Home Affairs of Ukraine and service in civil defense bodies;

o    individuals which, according to the law, receive aid on childcare upon three years old achievement;

o    one of non-working parents capable to work, adoptive parents, foster parent, trustee, which take care of a disabled child, as well as non-working individuals capable to work, which take care of the first class disabled person or of an elderly person, which needs permanent care, according to the conclusion of a medical institution, or achieved the age of 80, if such non-working individuals capable to work receive aid or compensation according to the legislation.

 

Single contribution payment 
The size of single contribution is established in percentage from the wages amount and depends on the production professional risk class, determined for the employer on the main activity type and makes from 36,76% to 49,7%.

  • For state-financed organization (irrespective of the determined production professional risk class) the size for single contribution counted makes 36,3%.
  • Enterprises, institutions and organizations for working disabled people pay single contribution in the size of 8,41%.
  • Charging of single contribution for employees is executed at the rate of 3,6% of total salary due on payment types.
  • For enterprises, institutions, organizations, natural entities which pay aid on temporary disability to individuals (including disabled persons), single contribution for the sums of payment of the first five days of temporary disability, which is executed on account of the employer, and the sums of aid on temporary disability is calculated at the rate of 33,2%.
  • For individuals which receive aid on temporary disability the rate of single contribution from the sums of the aid makes 2%.
  • Single contribution tax assessment base for payers-employers which use the labor of natural entities on civil-law agreements (except the civil-law agreement concluded by the entrepreneur with the natural entity if the executed works (rendered services) correspond with the activity types indicated in the state registration certificate the natural entity as the entrepreneur) is a reward which is paid to such a natural entity for executed works (rendered services). Single contribution the sums of such an award is calculated by the employer in the amount of 34,7%. For tax payers – natural entity single contribution is calculated in the amount of 2,6% of the reward on the civil-law agreements.
  • Natural entities – entrepreneurs (except those which chose simplified taxation system) and persons, which provide themselves with work and receive the income directly from this activity, under the condition that such persons are not employees or entrepreneurs, pay single contribution in the amount 34,7% of the income (profit) received from their activity which is subjected to taxation of natural entities income.
  • Herewith the sum of single contribution cannot be less than the size of minimal insurance contribution for each person for a month, in which the income (profit) was received.
  • For natural entities - entrepreneurs, which chose the simplified system of taxation, the single contribution is calculated in the amount of 34,7% for the sums which are determined by by such payers individually but not more than maximum size of single contribution tax assessment base, stipulated by the Law. Herewith the sum of cannot be less than the size of minimal insurance contribution.

The payment of single contribution is executed by the payers only in national currency by the relevant sums of single contribution payment to the accounts of the Pension Fund bodies, opened in the Ukrainian Treasury Department bodies for its payment. Single contribution is paid by money transfer from his bank account. Single contribution is subject to be paid irrespective of financial state of the payer. It is necessary to note that Single contribution is not included into the taxation system. Tax legislation does not regulate the order of charge, calculating and paying of single contribution. 



Taxation of the income received by the tax payer as a result of inherit or present of cash, estate, property or non-property rights. 

Inheritance objects of tax payer with the purpose of taxation are divided into:

  • real property item;
  • movable property item, namely:

o    antique item or art object;

o    natural precious stones or precious metal, a piece of jewelry using precious metals and/or natural precious stones;

o    any transport vehicle and its equipment;

o    other types of movable property;

  • commercial activity object, namely: valuable security (except deposit (savings), mortgage certificate), corporate law, ownership of business object as it is, it means for integral property complex, intellectual (industrial) property or the right for receiving income from it, property and non-property rights;
  • the sum of insurance compensation (insurance settlement) on the insurance contracts, as well as the sum which is kept on a pension deposit account, funded pension account, individual pension account of legator – member of funded system of pension provision;
  • cash or funds which are kept on the legator’s accounts, opened in banking and non-banking financial institutions, including deposit (savings accounts), mortgage certificates, certificates of real estate operations fund.

 

Inheritance objects are taxed:

  • at zero rate:

o    property value which is inherited by the family members of the legator of the first parental order;

o    property value (real estate item, movable property item, the sum of insurance compensation on the insurance contracts, the sum which is kept on a pension deposit account and so on) which is inherited by the person who is the first class disabled person or has the status of an orphan child or a child deprived from parental care, as well as the value of the property (real estate item, movable property item), which are inherited by a disabled child;

o    financial savings, deposited before the 2nd of January 1992 in the institutions of the USSR Savings bank and state insurance of the USSR, which were acting on the territory of Ukraine, as well as in state securities/funds (bonds of State target-oriented interest-free loan of 1990, bonds of State home/inside interest lottery of 1982, public debt obligations of the USSR, the USSR Saving bank certificates) and financial savings of Ukrainian citizens, deposited in the institutions of Ukrainian Savings bank and former Ukrainian State Insurance Organization (Ukrderzhstrakh) during 1992 - 1994, which repayment and redemption did not take place, that are inherited by any inheritor;

  • at the rate of 5 per cent the value of any inheritance object which is inherited by inheritor who are not family members of the legator of the first parental order, is taxed;
  • rates of 15, 17 per cent (depending on exceeding of ten-fold size of minimal wages) are determined for any inheritance object, which is inherited by the inheritor from the legator –non-resident and for any inheritance object which is inherited by the inheritor-non-resident from the legator-resident.

Income taxation received by the tax payer as a present (or as a result of gift contract concluding) from natural entities. 
Funds, property, property or non-property rights, cost of works, services, presented to the tax payer, are subject to taxation according to the rules stipulated by this section for inheritance taxation.

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