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Ukraine Considering VAT Rate Reduction and Progressive Individual Income Tax Rates on Employment Income

19 February 2020

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Proposed Changes

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Ukraine

The Ukraine parliament is considering two draft laws that would reduce the standard value added tax rate. The first draft would reduce the rate from 20% to 17% with effect from 1 January 2021. The second draft would rate the rate to 15% in stages: 19% in 2021 18% in 2022 17% in 2023 16% in 2024 15% in 2025 The parliament is also considering two draft laws that would introduce progressive individual income tax rates for employment income based on minimum monthly salary/wage (MMS). The first draft would introduce brackets/rates as follows: up to 10 MMS - 18% over...