Ukraine has approved tax reforms that will allow the country to access increased financial aid from the IMF. Ukraine requires the IMF funding to ensure the stability of its finances. For this reason some planned tax cuts will not be implemented and there will be some tax increases.
The measures include an increase in individual tax rates that will now be between 17 percent and 25 percent in four brackets. The highest rate of personal income tax will be applied on income over UAH 1 million. The corporate tax rate is to remain at 18 percent instead of being lowered as originally planned. Value added tax is to remain at 20 percent instead of being reduced as originally projected. A 15% tax will apply to pension payments above UAH 10,000.
