Starting from 1 January 2020, the subsistence level for able-bodied persons will amount to 2102 hryvnias. The maximum wages in 2020 to which social tax concessions are applied amount to 2940 hryvnias (2102*1.4). This amount is calculated in the following way: monthly subsistence level for an able-bodied person as of 1 of January of the accounting tax year is multiplied by 1.4 and rounded to the nearest 10 hryvnias. (item 69.4.1 of Tax Code).
Social tax concession (STC) in 2020 will be the following:
|Total (basis) STC||50%||1051.0 UAH (2102*50%)||169.1.1 (Tax Code)|
|Increased STC||100%||1051.0 UAH (2102*50%)*100%||169.1.2 (Tax Code)|
|Increased STC||150%||1576.50 hryvnias (2102*50%)*150%||169.1.3 (Tax Code)|
|Increased STC||200%||2102.0 hryvnias (2102*50%)*200%||169.1.4 (Tax Code)|
Social tax concession means an amount by which the natural persons income tax payer can reduce the amount of monthly taxable income, received from the sources within Ukraine from one employer in the form of the wages.
Social tax concession reduces taxation base, thus reducing personal income tax.
Source: Chapter “Regulatory and Information Documents”