We offer the following services:
- Preparation and submission of VAT returns
- Preparation of accounts
- Registration of new businesses for tax and VAT
- Completion and filing of online company tax returns
- Tax advice for small/medium sized businesses and individuals
- Resident and non-resident tax advice
You can set up the following types of business in the Ukraine:
Limited Liability Company – LLCJoint Stock Company – JSCRepresentative OfficeLimited Liability Company – LLC Limited Companies are the most popular form of Ukrainian company. The minimum required share capital for an LLC is currently 1 UAH and it is not limited by law. Half of the share capital must be paid up, to be fully formed within a year of the LLC establishment. Unlike typical European LLCs, shareholders in Ukrainian Limited Liability Companies own a percentage of the capital, which is detailed in the company’s Charter. An audit is only required if prescribed in the company Charter by the shareholders.
Joint Stock Company – JSC
There are two types of Joint Stock Companies; open and closed. The shares of open JSCs are distributed by public subscription and for sale on the stock exchange. The shares of closed JSCs are distributed among the founders and may not be distributed by subscription or bought and sold on the exchange. The minimum required share capital is the equivalent of 1,250 Ukrainian monthly minimum wages (at the time of formation).
Annual financial statements of an open joint stock company require a mandatory audit by an independent auditor. An audit of a JSC can be conducted if requested by a shareholder who is either the company owner or holds more than 10% of shares. Representative Office A Representative Office is not autonomous and is consequently controlled by its foreign parent company. Just as with an LLC, however, a Representative Office is required to register with the various business and tax authorities. A permanent Representative Office is regarded as a profit tax payer and should follow the standard procedure.
MAIN TAXES IN THE UKRAINE
The two main types of taxation in the Ukraine are:
- Corporation Tax
- Personal Income Tax
The current rate for Ukrainian Corporation Tax is 21%, but reductions to 19% and 16% are set to follow in 2013 and 2014 respectively. Corporation Tax applies to the worldwide income of companies that are resident in the Ukraine and the Ukrainian income of non-resident companies.
PERSONAL INCOME TAX
The rate of payable tax varies depending on the type and level of income. The basic Personal Income Tax rate is 15% – this applies to any income from employment (of up to ten times the minimum monthly wage) as well as investment and rental income.
Lower tax rates than standard are shown below:
- 5% applies to income from the sale of real estate or moveable property.
- 1% applies to the income received by a Ukrainian taxpayer from the first sale of a property (greater than 100 sq.).
- No tax is applicable for inheritance from family members of the first degree, or income received by a Ukrainian taxpayer from the sale of a property (smaller than 100 sq.).
- Higher tax rates than standard are shown below:
- 30% applies to income received from winnings or prizes of Ukrainian residents.
- 17% applies to income from employment that is greater than ten times the minimum monthly wage.
The basic rate of VAT in the Ukraine is 20%. This is set to rise to 17% from the 1st January 2014.
The sale of all goods and services in the Ukraine is subject to VAT.
VAT registration is mandatory if annual turnover exceeds UAH 300,000, computer networks are used to supply the customs territory of Ukraine, or goods and services are imported into the customs territory of Ukraine for consumption in the territory.