Want to pay less taxes? In 2025, it's possible! We'll tell you about ways to legally optimize your taxes, including using tax social benefits and correctly and timely declaring your income.
Ukrainians are not only required to pay taxes , but also have the right to receive a tax benefit. How to do it correctly? Who and when should file a declaration? How much tax should be paid in general? Let's look into the nuances of Ukrainian tax legislation.
Basic principles of the tax system
Understanding the basics of tax legislation is the first step to financial literacy. In Ukraine, the tax system consists of different types of taxes: income tax, single social contribution, military tax, and others. Each of these taxes has its own characteristics and rules for accrual.
The main thing about personal income tax in 2025
- Income tax (18% of total monthly income).
- Military tax (5% of income).
- Single social contribution (22% of salary, paid by the employer).
- Special cases :
- Dividends from residents – 5% , from non-residents – 9% .
- Sale of the second property in a year – 5% , third – 18% (additionally – 1% state duty, 1% pension tax, 5% military tax).
- The sale of the first car during the year is not subject to tax , the second – 5% , the third – 18% .
- Inheritance from immediate relatives – 0% , from others – 5% , from non-residents – 18% .
How to Legally Pay Less Taxes
There are legal methods of tax optimization that will allow you to pay less and avoid fines. These are tax social benefits and income declaration.
Tax Social Benefit (TSB)
Who is eligible for NSL:
- Workers with an income of up to UAH 4,240 per month in 2025.
- Parents raising 2 or more children under 18 years of age (for them the income limit increases).
- Some categories of beneficiaries (single parents, guardians, persons with disabilities, etc.).
PSL dimensions:
- The basic NSL (100%) is 1514 UAH – equal to 50% of the subsistence minimum for an able-bodied person on January 1; the NSL amount does not change during the year.
- Increased (150%) – 2271 UAH (single parents, guardians, persons with disabilities of groups I–II, students, etc.).
- Increased (200% ) – 3028 UAH (rarely used, since the benefit is provided to a limited circle of people: Hero of Ukraine, Hero of the Soviet Union, Hero of Socialist Labor or a full Cavalier of the Order of Glory or the Order of Labor Glory, a person awarded four or more medals “For Courage”, veterans of World War II, persons with disabilities of groups I-II from among the participants in military operations on the territory of other countries in the period after World War II).
How the marginal income changes for parents with children:
- 2 children – up to 8480 UAH.
- 3 children – up to 12720 UAH.
- 4 children – up to 16960 UAH.
Correct declaration of income
- Keep all financial documents.
- Declare your income on time.
- Double check your calculations.
- Use electronic services to submit reports.
Deadlines for filing declarations
Compliance with tax return filing deadlines is an important aspect of financial discipline for Ukrainian citizens.
The following persons are required to submit a declaration by May 1:
- individuals who have received special types of income: foreign receipts, income from the alienation of corporate rights, and leasing of property;
- individuals who have received an inheritance or gift from persons not related to the first or second degree of kinship.
Special rules apply to individual entrepreneurs (not on the simplified system), independent professionals and individuals intending to receive a tax deduction.
For some categories of payers, special deadlines are provided:
- When terminating activities, a sole proprietor must submit a declaration within 20 calendar days after registration of the termination.
- Residents leaving the country for permanent residence – no later than 60 days before departure.
Common Mistakes and How to Avoid Them
1. Late submission of the declaration. Fines (340-1020 UAH) are charged for late submission.
2. Inaccuracies in calculations. May lead to additional checks and fines.
3. Failure to account for all sources of income . Concealing information about additional income is punishable by law.
Useful tools and services
– Personal account of the taxpayer.
– Mobile application “My Tax” from the State Tax Service of Ukraine: Google Play and App Store.
Tax literacy is not only a duty, but also the management of your finances. Therefore, it is important to study the legislation and be careful when preparing reports.
Author: Anastasia Kuprienko