Capital Gains Tax in Ukraine

Ukraine taxes capital gains as ordinary income at 18% plus 1.5% military levy for short-term holdings, while long-term holdings of listed securities may qualify for 0% rate.

Scope of Capital Gains Tax

Capital gains in Ukraine are generally taxed as ordinary income. The rate depends on the type of asset and holding period.

Capital Gains for Individuals

Securities Gains

Gains from the sale of securities are taxed as follows:

• Long-term holdings (>1 year): 0% for listed securities meeting certain conditions
• Short-term holdings (<1 year): 18% PIT + 1.5% military levy = 19.5%
• Corporate bonds: 18% PIT on interest + 1.5% military levy

Real Estate Gains

Gains from property sales:

• Held >3 years: 0% (one sale per year exemption)
• Held <3 years: 18% PIT + 1.5% military levy = 19.5%
• Inherited property: 0% on sale (if held >3 years)

Capital Gains for Corporations

Corporate capital gains are treated as ordinary business income and taxed at the standard CIT rate of 18%.

Exemptions and Reliefs

• Listed securities held >1 year (with conditions)
• Primary residence sale (one sale per year)
• Agricultural land held >3 years
• Inherited assets (subject to conditions)
• Gains from Diia City IT activities

Calculation of Gains

The capital gain is calculated as the difference between the sale price and the acquisition cost, adjusted for:

• Acquisition costs (brokerage fees, registration duties)
• Capital improvements (for real estate)
• Selling costs (agent commissions, legal fees)
• Inflation adjustment for long-term holdings

Filing and Payment

Individuals must declare capital gains in their annual tax return. The tax year follows the calendar year, and the return must be filed by May 1 of the following year.