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Ukrainian lawmakers canceled tax on pensions lower than UAH 11,300

Ukrainian lawmakers canceled tax on pensions lower than UAH 11,300Ukraine's Verkhovna Rada has abolished taxation of pensions for working and non-working pensioners who have pensions less than 10 subsistence wages for persons who lost the ability to work.

An Interfax-Ukraine journalist reported that bill No. 4245 amending the Tax Code with respect to exemption of pensions from taxation was backed by 274 lawmakers on Thursday.

"We exempt pensions of working and non-working pensioners from taxation, but there should be social fairness," Head of the parliamentary committee for tax policy Nina Yuzhanina said in parliament.

For pensions equaling more than 10 subsistence wages for persons who lost ability to work the tax rate would be 18% for the sum than exceeds this amount.

Yuzhanina said that currently 10 subsistence wages equals UAH 10,750.

Read also: 15% tax on pensions exceeding three minimum wages to be revoked in Ukraine

According to information from the website of the Finance Ministry, from May 1, 2016 the subsistence wage for persons who lost ability to work was set at UAH 1,130 and from December 1, 2016 it will grow to UAH 1,208. Thus, the smallest pension exempted from taxation would be UAH 11,300 and from December 1, 2016 – UAH 12,800.

Subsistence wage for persons who lost ability to work was UAH 1,740 from September 1, 2015 until April 30, 2016.
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