Ukraine taxes residents on worldwide income and non-residents on Ukraine-source income only. Ukraine operates a self-assessment system, with the State Tax Service conducting post-filing review and audit.
The Ukrainian tax year is generally the calendar year. The individual filing deadline is 1 May of the following year.
Ukraine's headline corporate income tax (CIT) rate is 18% general; 25% financial institutions (2025+); 50% banks (2026).
The headline personal income tax (PIT) rate is 18%.
The standard VAT/GST (or equivalent consumption tax) rate is 20%.
Ukraine applies a cascading residency test, broadly following the OECD Model: an individual is resident if their permanent place of residence is in Ukraine; if they have homes in multiple countries, whichever country holds their center of vital interests (a sufficient but non-exclusive indicator being where their family resides or where they are registered as a business entity); if vital interests can't be determined and they have no permanent home anywhere, presence in Ukraine 183 days or more (including arrival/departure days) in the tax year; and, failing all else, Ukrainian citizenship. Registered freelancers and private entrepreneurs are also treated as Ukrainian tax residents. Residents are taxed on worldwide income; non-residents only on Ukraine-source income. Individuals departing Ukraine permanently must file a departure tax declaration at least 60 days before leaving and settle outstanding tax.
A non-Ukrainian entity has a Ukrainian permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Ukraine on the entity's behalf, following the OECD Model Treaty definition as applied under Ukrainian domestic law and any applicable tax treaty.
Ukraine's CFC regime took effect January 1, 2022 (first reporting period 2022, with transitional relief from penalties for the 2022-2023 reporting years). A CFC's profits are exempt from Ukrainian tax where either: a tax treaty or information-exchange agreement exists between Ukraine and the CFC's jurisdiction and the CFC pays an effective tax rate of at least 13%, or the CFC's passive income is 50% or less of total income (or specific substance criteria are met); or the aggregated income from all CFCs held by one controlling person doesn't exceed EUR 2 million at period-end.
Ukraine's thin capitalization rule applies once a company's total cross-border debt exceeds 3.5 times its equity; where triggered, interest on that cross-border debt is deductible only up to 30% of taxable profit (before adding back interest and depreciation). Non-deducted interest carries forward but is reduced by 5% annually on the residual carried-forward amount.
Ukraine does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Ukraine does not have a comprehensive ATAD2-style anti-hybrid regime, though Ukraine's own CFC regime (effective 2022 - see CFC section above) addresses related cross-border deferral concerns.
No foreign bank account or foreign financial asset reporting regime exists in Ukraine requiring residents to separately disclose foreign accounts.
Ukraine does not provide a broad participation exemption for foreign dividends in the European sense; foreign dividends received by a Ukrainian company are generally taxable, with relief from double taxation available through Ukraine's foreign tax credit system - and with specific coordination rules against Ukraine's own CFC regime to avoid double-counting profits already attributed under that regime.
Ukraine has a real foreign tax credit regime available to both individuals and companies for foreign tax paid on foreign-source income also taxed in Ukraine, capped at the Ukrainian tax otherwise due on that income.
Per Ukraine's Ministry of Finance, 70 double tax treaties are currently in force (a figure that has been in flux: agreements with Russia, Belarus, and Syria were cancelled 2022-2023, and the treaty with Iran was terminated effective January 1, 2025). New treaties have been signed with Australia (October 2025) and an updated agreement with Germany (May 2026), both pending domestic ratification procedures before entering into force.