Pension Tax in Ukraine: Expert Explains Who Should Pay and From Which Income.

There is no tax on pensions in Ukraine

Ukrainian pensioners can be at ease, as there is no tax on pensions in the country. This information is spread due to the misinterpretation of old norms that were canceled in 2018. Now, no pension, regardless of its size, is taxed.

Pension expert Sergey Korobkin explained that the spread of rumors about taxes on pensions is a result of outdated explanations from the tax service that are no longer effective. The situation changed in 2018 after a decision by the Constitutional Court of Ukraine, which recognized the taxation of pensions as unconstitutional. Since then, no pension is taxed.

Unlike pensions, officially employed pensioners pay taxes on their salaries, not on their pensions. They pay a standard 18% income tax and a 5% military levy.

It is also important to note that even large pensions exceeding 24 thousand hryvnias are not taxed. However, for most Ukrainians, this is not a relevant issue, as the maximum pension amount is capped at 23,610 hryvnias.

Therefore, Ukrainian pensioners can be at ease, as no current law provides for the taxation of pension payments.