On January 1, 2015, amendments to the tax code of Ukraine came into force regarding the calculation of tax on personal income.

According to the Law “On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine regarding tax reform” dated 12.28.2014, the tax rate for the income of individuals received in the form of interest on deposits is changed. From 01.01.2015 p. the total amount of two taxes on interest on deposits is 21.5%. The tax agent of the individual investor is a financial institution. And it is precisely the financial institutions — the bank, the credit union, and others — that have the duty to withhold and pay taxes on income received in the form of interest on deposits.

The increase in tax from the rate of 15% to 21.5% was due to two components:

  1. 20% of the income of individuals when calculating interest on deposit and other accounts. This type of tax was first earned in Ukraine since August 2014. By the end of 2015, the tax rate was 15% and from 01.01.2015 increased by 5% to 20%.
  2. 1.5% of the Military tax on personal income when calculating interest on deposit and other accounts. This tax will be valid until the decision to complete the reform in the Armed Forces of Ukraine comes into force.

In European countries and in the world in general, many countries impose a tax on personal income when calculating interest on deposit and other accounts. In most developed countries, the rule applies: “There is income, must pay tax.” Compared with similar taxes in other European countries, for example, in Portugal it is 28%, in France – up to 18%, in Ireland – 25%. parts of taxation of income of individuals.