Personal income tax (PDFO) is the tax on a person’s wages and other income, most often withheld by the employer or another tax agent.
In plain words
The main rate is 18% of the tax base (Article 167.1 of the Tax Code); 5% applies in cases expressly listed in Section IV (Article 167.2). For passive income, including interest on a bank account or deposit, the rate is 18% (Article 167.5.1). The military levy (5%) is withheld separately from the same income unless the income is exempt from it. Sole proprietors on the single tax do not pay personal income tax on business income: the single tax replaces it. Rates are given as in the Tax Code version of 17 September 2026.
Sources
- Tax Code of Ukraine No. 2755-VI of 2 December 2010 — Arts. 167.1, 167.2, 167.5.1, 14.1.268 (version of 17 September 2026). Checked 14.10.2026.
Example. A salary of UAH 20,000 before tax: the employer withholds 18% personal income tax (UAH 3,600) and the 5% military levy (UAH 1,000), leaving UAH 15,400 (illustrative). The employer pays the social contribution separately on top of that amount.