The current taxation system for LLCs in Ukraine
Every year, amendments are made to the Tax Code of Ukraine, some clauses in the laws are changed or new ones are adopted, the taxation system for LLCs also changes, since any business must be carried out in accordance with the current Ukrainian legislation. 2024 was no exception. Influence any changes in legislation – it is impossible, but to enlist the support of experienced specialists who can provide accounting services on any taxation system – it is possible and even necessary!
| Service | Type | Price | Duration |
|---|---|---|---|
| LLC accounting | No activity | from 1500 UAH | month |
| LLC accounting | Minimum activity | from 5000 UAH | month |
Specialists from BuhUA are ready to work with clients on any taxation system.
We have collected for you information on the main innovations in the current taxation for LLCs in 2024.
General taxation system
The general taxation system is suitable for enterprises with a large amount of profit.
On the general system, LLCs pay:
| Tax to be paid | Tax Description |
|---|---|
| Income tax | Base rate 18% of net income. Depending on the type of activity, the percentage rate can be 0, 3, 9, 10, or 30%. The rate is influenced by the type of activity and compliance with a certain category of tax payer. |
| Value added tax | 20%. Depending on the type of activity, the interest rate can be 0, 7% and also 14%. This depends on the type of goods and services provided that the LLC sells. Registration of VAT payers is voluntary. But according to Art. 181 of the Tax Code of Ukraine, registration of VAT payers is a mandatory procedure in cases where over the last year the total amount from the sale of products or provision of services is 1 million hryvnia or more (minus the amount of paid VAT). |
Simplified taxation system
This system only provides for the payment of a single tax, which is calculated at a set rate. Its size depends on the group the taxpayer belongs to (1, 2, 3 or 4 groups). The first and second groups are not available for LLCs. An LLC can choose the third or fourth tax group on the territory of Ukraine. The fourth group is chosen only by those LLCs that are engaged in agricultural activities and, accordingly, the tax depends on the amount of cultivated land.
| Payer | Rate |
|---|---|
| VAT payer |
|
| Not a VAT payer |
|
Most often, Group 3 LLCs choose 5% of turnover to avoid paying VAT. Under the simplified system, VAT payers do not have to become VAT payers when they reach a turnover of UAH 1 million. In case of exceeding the income limit for 3 gr. EP 5% LLC is obliged to switch to the general system and register as a VAT payer.
STS in LLC cannot be applied to enterprises that:
- employed in the gambling industry;
- engaged in currency exchanges;
- manufacture, export or import, and also sell excisable products;
- mines, manufactures and sells precious materials;
- extract and sell minerals;
- act as financial intermediaries;
- help manage other businesses or organizations;
- provide postal services (except courier) and communications (except for activities that are subject to licensing);
- sell art, antiques, organize auctions;
- are organizing tours.
Additionally, having hired employees in any taxation system, the LLC acts as a tax agent and is obliged to pay taxes:
| Tax to be paid | Descriptiontax |
|---|---|
| Citizens’ income tax (NDFL) | 18% of the employee’s salary |
| Unified Social Contribution (USC) | 22% from the wage fund |
| Military gathering | 1.5% of the employee’s salary |
Other LLC taxes
In the calculation for 1 employee, the salary expenses will be as follows (for the calculation, we take the minimum salary for the year 04/01/24 of UAH 8,000):
– VAT 1440 UAH
– VZ 120 UAH
– ESV 1760
the employee will receive UAH 6,440.
In addition to the basic taxes that an LLC pays on its income, there are a number of other taxes. If the LLC has real estate, then it is necessary to pay real estate tax, transport – transport tax, sell excise goods – excise tax, etc. The more types of activities, the more different taxes.
Reporting
Basic taxes and LLC reporting:
- Income tax – the report is submitted in the financial statements of the LLC within 25 days after the reporting year.
- VAT – the report must be submitted monthly before the 20th day of the next month (VAT Tax Return), if you apply to choose a quarterly report, you can submit the VAT report quarterly.
- The report on personal income tax, income tax and tax return (Joint reporting) is submitted jointly for the period of a quarter within 40 days after the end of the reporting quarter.
- Single tax – quarterly reporting 40 days after the end of the quarter – deadline for submission.
- The single tax is paid within 10 days following the last day of declaration submission (or within 50 days following the reporting quarter)
- Financial reporting – for those who report for the year? the submission deadline is no later than February 28 following the reporting year, for those reporting quarterly – no later than the 30th of the month following the reporting quarter.