Ukraine State Tax Authority Clarifies Taxation of Material Assistance From Employers

The Ukrainian State Fiscal Service Dec. 1 clarified the taxation of material assistance from an employer. The clarification explained that: 1) the taxable income of an employee includes basic salary, other incentives, and compensation payments accrued in terms of the employment agreement; 2) any material assistance to an employee in terms of the employment agreement is considered taxable income, subject to an 18 percent income tax rate; and 3) one-time unconditional material assistance to an employee, upon application, is tax-exempt, up to 2,690 Ukrainian hryvnias (US$98.57) in 2019, 2,940 hryvnias (US$107) in 2020, and 3,180 hryvnias (US$116) in 2021. [Ukraine, ...