Cancellation of tax on pensions: 300 thousand Ukrainians will receive more.

Starting from July 1, Ukraine abolished the taxation of pensions. This was announced by Ukraine's Deputy Prime Minister Pavlo Rozenko on his Twitter.

'From today, the taxation of pensions is cancelled. As a result, 300 thousand pensioners will receive an increase to their pensions,' wrote Rozenko.

The President signed changes to the Tax Code

The Verkhovna Rada cancelled the taxation of pensions on June 2. Taxes are abolished for both working and non-working pensioners, up to 10 subsistence minimums for people who have lost their ability to work (up to 10,740 hryvnias).

President of Ukraine Petro Poroshenko signed changes to the Tax Code of Ukraine regarding the exemption from taxation of pensions on June 10. According to the President, abolishing the tax burden on pensions allows for macro-financial stabilization.

It should be noted that pensions in Ukraine were taxed since 2015. The tax applied only to the part of the pension that exceeds three minimum salaries (4,134 hryvnias in 2016).

Starting from July 1, Ukraine has abolished the taxation of pensions. Taxes will no longer be levied on pensioners, which is an important step in enhancing social support for the most vulnerable categories of the population.