NBU abolished the limit on transfers between cards: what you need to know.

The National Bank has abolished the limit on card-to-card transfers

The National Bank has abolished the limit on card-to-card transfers of 150 thousand hryvnias per month. Now there is no such restriction for individuals.

Taxation of money transfers from card to card

Lawyer Vasyl Andrusyak explained that according to the Tax Code, 25% of the minimum wage, which amounts to 2 thousand hryvnias per year, is not subject to taxation. However, this exemption applies only to gifts in kind and does not extend to cash payments of any amount.

'Ideally, all transfers to a card exceeding the amount of 2 thousand hryvnias should be taxed... The recipient must declare the income,'

Costs of commissions during money transfers

Individuals also incur costs for paying bank commissions during money transfers. It is advisable to check with the bank for the tariffs for servicing such operations before making transfers.

In general, for any type of income in Ukraine, there is a basic rate, which is:

• individual income tax - 18%;
• military tax - 5%.

Gifts and taxation

The Tax Code clearly states that gifts between family members of the 1st-2nd degree of kinship are not taxed. However, if a non-relative transfers an amount to your card, you will be obliged to pay taxes, as you have received income.

Text analysis

In the new reality of the Ukrainian financial sector, it is important to understand the rules of taxation for transfers between cards and gifts. The explanations provided by lawyer Vasyl Andrusyak help to better understand this issue and avoid tax misunderstandings.