Publication date: 07.06.2024
Tax consultation for individuals
Introduction
In today's economic environment, personal finance and tax issues are becoming more and more important for individuals. Correct understanding and fulfillment of tax obligations is key to ensuring financial stability and reducing risks. This article will cover the main aspects of taxation of individuals in Ukraine as of 2024 and will provide practical recommendations relevant to a wide range of readers.
Basic taxes for individuals
1. Personal income tax (PIT)
Personal income tax is the main tax paid by individuals in Ukraine. It is levied on most types of income, including wages, dividends, interest, rent, etc. The standard personal income tax rate is 18%, but special rates may apply to certain types of income.
2. Military collection
The military levy is paid simultaneously with personal income tax and is 1.5% of taxable income. Funds received from the military levy are directed to meet the needs of the Armed Forces of Ukraine.
3. Single social contribution (EUS)
EUV is a mandatory payment that is paid by both employers and individual entrepreneurs. The EUV rate for employees is 22% of the salary.
4. Property tax
Property tax includes three components: tax on immovable property other than land, transport tax and land tax. Tax rates and rules for each of these components are set by the local government.
Peculiarities of taxation of certain types of income
1.Taxation of wages
Salary is the main source of income for most individuals. It is taxed at the standard personal income tax rate of 18% and a military levy of 1.5%.
2. Taxation of dividends
Dividends received from resident legal entities are taxed at a rate of 5%. Dividends from non-residents are taxed at the standard personal income tax rate of 18%.
3. Taxation of income from the sale of property
Income from the sale of movable and immovable property owned for more than 3 years is taxed at a rate of 5%. If the property was sold earlier, the standard VAT rate of 18% applies.
4. Taxation of passive income
Passive income, such as interest, royalties and rent, is taxed at the standard personal income tax rate of 18%.
Tax benefits and discounts for individuals
1. Tax social benefit
Tax social allowance allows to reduce the taxable income by a certain amount for taxpayers with low incomes. The amount of the benefit in 2024 is UAH 1,921.
2. Other tax discounts
Individuals can also take advantage of other tax deductions, including for charity, mortgage interest, education, medical services, etc.
Chapter 5: Filing a tax return and paying taxes
1. Submission of a tax declaration
Individuals are required to submit a tax return by May 1 of the following year. The declaration can be submitted both in person and through online services.
2. Payment of taxes
Payment of personal income tax and military duty occurs when receiving income, for example, by the employer when paying wages.For other types of income, taxpayers must pay taxes independently by August 1 of the following year.
Liability for violation of tax legislation
Non-compliance with tax obligations can lead to the imposition of fines and penalties, and in some cases - to criminal liability. Therefore, it is important to carefully study the tax legislation and fulfill your tax obligations on time.
Conclusion
Taxation of individuals in Ukraine is a complex topic covering a wide range of issues. A correct understanding of the main taxes, their rates, the specifics of taxation of various types of income, as well as tax benefits and obligations is key to ensuring financial stability and minimizing risks. I hope this article has provided you with the knowledge and tools you need to effectively manage your own tax obligations.
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