Tax systems and incentives in Ukraine

Ukraine continues to modernize its tax system, aligning national legislation with EU standards under the Association Agreement. Its tax framework includes three primary regimes: the general system, the simplified system, and the specialized Diia City regime tailored for IT businesses.

Under the general taxation system, key taxes include corporate income tax at 18%, VAT at a standard 20%, personal income tax at 18% plus a military tax of 5%, and a unified social contribution of 22% on salaries. Excise taxes and property taxes also apply, with property tax capped at about 4 EUR per square meter in 2025.

For individual entrepreneurs and small businesses, Ukraine offers a simplified taxation system with minimal reporting requirements. However, certain business sectors, such as gambling and financial services, are excluded from this regime.

The Diia City framework aims to boost the IT sector by offering a favorable 9% tax on distributed profits, a 5% personal income tax plus 5% military tax for employees and gig workers, and a reduced social contribution based on the minimum wage.

Currency controls and transfer pricing compliance

Regarding currency controls, Ukraine maintains

restrictions on foreign payments, including limits on loan repayments to non-residents, dividend payments abroad, and high-value foreign currency withdrawals. Import-export transactions are generally subject to a 180-day settlement rule.

In transfer pricing, Ukraine has implemented OECD- aligned rules with strict thresholds for controlled transactions and reporting obligations, including country-by-country reporting for multinational groups.

Modernization and investment climate

A major trend is the digitalization of tax administration, with widespread adoption of e-filing, e-invoicing, and e- audits to improve compliance and transparency. Ukraine is also implementing global standards under the OECD’s BEPS Action Plan and MLI treaties to fight tax avoidance.

Presentation of the firm:

Our company has been successfully working in the market of audit services since 2005.

By using our services, you get confidence with the information used for making important decisions, and thus confidence in all your actions.

Auditing services, services for financial and tax reporting, accounting, consulting, legal support of any transactions in reorganization, and mergers have the highest demand in our company.

We believe that the key to success in any field is professionalism and continuous development; therefore, we are constantly working to improve quality of our services and are committed to realizing individual solutions with each client, which in turn gives us the opportunity to take full responsibility for our work.

The company policy requires every employee to monitor his or her professional level. We created conditions for learning and improving knowledge. Material and technical bases provide an opportunity to support high- quality professional level. In addition to internal testing, the level of knowledge is evidenced by certificates of independent professional accounting and auditing organizations.

Member’s presentation

Yaroslav Golubka

Director of Varianta LLC Managing partner

Founder and Director of the audit company

Yaroslav Golubka is a certified auditor, Certified Accounting Practitioner (CAP).

In 2006 he received PhD degree in Economic sciences («Accounting, analysis and audit»).

Yaroslav Golubka combines professional activities with teaching at the Department of Accounting and Taxation of Mukachevo State University and is the Chairman of the Transcarpathian territorial branch of Professional Accountants and Auditors Federation of Ukraine.

He is a member of the Auditors Union of Ukraine and a member of the Public