Ukraine Tax Rates
Ukraine operates a flat 18% income tax system supplemented by a 1.5% military levy, resulting in an effective 19.5% rate on employment income. The country features an 18% corporate tax rate, a 20% VAT, and special simplified taxation regimes for small businesses. Ukraine's tax system has been significantly impacted by the ongoing conflict, with emergency tax measures and international aid arrangements.
Top Income Tax Rate
19.5%
Corporate Tax Rate
18%
VAT / Sales Tax
20%
Capital Gains Tax
18%
Detailed Tax Information
Income Tax Brackets
Ukraine applies a flat 18% personal income tax (PDFO) on all types of income, including employment, business, and investment income. An additional 1.5% military levy (víyskovy zbír) applies to most income types, bringing the effective rate to 19.5%. Passive income (dividends, interest, royalties) is also taxed at 18% + 1.5% military levy.
| Income Range | Tax Rate |
|---|---|
| ₴0+ | 18% |
Corporate Tax
Ukraine levies corporate income tax at 18% on taxable profits. The tax is calculated based on accounting profit with adjustments. Small enterprises using the simplified system may opt out of corporate tax. Ukraine offers tax incentives for the IT sector and various economic activities.
Standard Rate
18%
Capital Gains Tax
Capital gains are taxed at 18% plus 1.5% military levy (19.5% effective). Real estate gains on the first sale per year of residential property held for 3+ years are exempt. Securities gains are taxed at 18% + 1.5%.
Rate
18%
VAT / Sales Tax
Ukraine applies a standard VAT (PDV - podatok na dodanu vartist) rate of 20%, with reduced rates of 14% and 7%. Wartime measures have introduced various VAT exemptions and deferrals.
Standard Rate
20%
Cryptocurrency Tax
Ukraine passed a law on virtual assets in 2022 recognizing crypto as property. Gains are subject to 18% income tax plus 1.5% military levy. The full regulatory framework is still being developed. Ukraine has one of the highest crypto adoption rates globally.
Tax Treaties
Ukraine has approximately 73 double taxation treaties. Some treaties (particularly with Russia and Belarus) have been effectively suspended due to the conflict. Ukraine is reforming its treaty network as part of EU accession preparations.
Treaty Network
73
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Ukraine
See how much you could save by moving here from your current country.
+$6K
Tax in United States
$24K
24.4% effective
Tax in Ukraine
$18K
18% effective
You Save
26.1%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
