What types of income are taxable and what can be exempt...?

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...from taxation?

01.06.2023 19:44 541

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Photo of sikorsky.y.o Yaroslav Sikorsky

In accordance with Article 165 of the Tax Code of Ukraine, the total monthly (annual) taxable income of a taxpayer does not include the following incomes:

  • the amount of state and social material assistance, state assistance, compensation, the cost of social services and rehabilitation assistance (including monetary compensation for persons with disabilities, for children with disabilities during the implementation of individual programs for the rehabilitation of persons with disabilities, the amount of assistance for pregnancy and childbirth), rewards and insurance benefits received by the taxpayer from the budgets and funds of mandatory state social insurance and in the form of financial assistance to persons with disabilities from the Fund for Social Protection of Persons with Disabilities in accordance with the law, decrees of the President of Ukraine and acts of the Cabinet of Ministers of Ukraine, as well as the cost of social assistance in kind to low-income families received from social service providers in accordance with the Law of Ukraine "On Social Services";

  • the amount of income received by the taxpayer in the form of interest accrued on state securities issued by the central executive body, which ensures the formation and implementation of state financial policy and/or implements state budget policy in the field of state debt and state-guaranteed debt management, and on debt obligations of the National Bank of Ukraine, as well as the amount of income received by non-residents in the form of interest accrued on state securities or bonds of local loans, or debt securities, the fulfillment of obligations of which is provided by state or local guarantees, if such securities securities purchased by non-residents outside the territory of Ukraine through authorized agents - non-residents, or interest received by non-residents for loans (loans or external borrowings) granted to the state or the budget of the Autonomous Republic of Crimea or the city budget, which are reflected in the State Budget of Ukraine or local budgets or attributed to expenses of the National Bank of Ukraine, or for credits (loans) provided to business entities, the fulfillment of which is ensured by state or local guarantees;

  • the amount of compensation to the taxpayer for the amount of damage caused to him as a result of the Chernobyl disaster, in the manner and amounts determined by law;

  • the amount of contributions to the mandatory insurance of the taxpayer in accordance with the law, other than the single contribution to the mandatory state social insurance;

  • the amount of a single contribution to the mandatory state social insurance of the taxpayer, paid at the expense of his employer in the amounts determined by law;

  • the amount of insurance contributions to the Savings Fund, and in the cases provided for by law - mandatory insurance contributions to the non-state pension fund and the bank management fund;

  • the amount of funds belonging to the taxpayer, which in accordance with the law are transferred from the Accumulation Fund to a non-state pension fund, bank management fund or insurance organization, from a non-state pension fund, bank management fund to another non-state pension fund, bank management fund, insurance organization or to the bank's pension deposit account;

  • the cost of free medical and preventive food, milk or equivalent food products, carbonated salt water, detergents and disinfectants, as well as special clothes, special shoes and other means of personal protection, with which the employer provides the taxpayer in accordance with the Law of Ukraine "On Labor Protection ", special (uniform) clothing and footwear provided by the employer for temporary use to the taxpayer who is in employment with him;

  • the amount of monetary or property support or maintenance of conscript servicemen (including persons undergoing alternative service) prescribed by law, which is paid from the budget or a budget institution;

  • ....

The above list is quite extensive, so I advise you to familiarize yourself with it in the code itself at the link https://zakon.rada.gov.ua/laws/show/2755-17/conv#n3699

02.06.2023 22:56

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