TAXATION OF DIVIDENDS IN UKRAINE

A dividend decision starts with confirmed profit and an understanding of exactly who receives the company's distribution. Taxpayer status, period, corporate rights and the recipient's residence determine taxes, reporting and bank documents.

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In previous years, owners often focused on one rate and one payment order. In 2026, the working set combines financial statements, the participants' decision, calculation of corporate profit tax, personal income tax, military levy, rules for non-residents and confirmation of the actual payment.

First — the corporate decision and amount of profit

The accounting team closes the period, confirms net profit and checks uncovered losses, restrictions in the charter and decisions on previous distributions. Participants determine the amount, period, proportions, currency and payment date. The decision is documented by minutes of the general meeting or a decision of the sole participant and provided to the accountant before payment documents are prepared.

If the company distributes profit for several years or pays dividends in instalments, the calculation is maintained separately for each basis. The register of participants is fixed as at the date of the decision. The bank receives the minutes, recipient details, tax calculation and payment description corresponding to the corporate and accounting documents.

Dividends to an individual

A Ukrainian company acts as tax agent. Dividends on corporate rights accrued by a resident corporate profit taxpayer are subject to personal income tax at 5%. Dividends from a non-resident, collective investment institution or entity that is not a corporate profit taxpayer are subject to a 9% rate. Certain payments treated as salary are analysed according to their legal nature.

The military levy on the relevant income of an individual in 2026 is 5%. The tax agent withholds the amounts on accrual and payment under the Tax Code rules and reports the income in the prescribed reporting. A recipient of foreign income checks the obligation to file an annual declaration and documents confirming tax paid abroad.

Advance corporate profit tax contribution

Before or at the same time as payment, a corporate profit taxpayer checks the advance contribution. Where the tax liability for the relevant year has been settled, the base is determined as the excess of dividends over the taxable object for that year. Where an outstanding monetary liability exists, the calculation may cover the entire amount distributed. The basic rate in Article 136 of the Tax Code applies.

The calculation is reported in Appendix AV to the corporate profit tax return. The advance contribution paid is taken into account when determining the final corporate profit tax liability under the Code. The accountant retains the calculation, proof of payment, return and the link to the specific participants' decision.

Payment to a legal entity and to a non-resident

For a Ukrainian legal entity, its tax status and recognition of the income in accounting are checked. When paying a foreign company, non-resident income tax is analysed: the basic domestic rate for dividends is 15%, while an international treaty may provide a different treatment if its requirements are met.

To apply a treaty, a tax residence certificate, confirmation of the beneficial recipient of the income and corporate documents are prepared. The ownership structure, date of the certificate and actual recipient are compared before payment. Controlled transactions and payments treated as dividends for tax purposes are checked separately.

Control after payment

Completion is confirmed by the bank statement, tax payments, reporting and accounting entries. The responsible employee reconciles the amount of the decision, withholdings, net payment and remaining liability to the participant. Where payment is made in several instalments, the register is updated after each payment.

The owner receives a short profit-distribution record: basis, recipients, accrued amounts, taxes, dates and confirmations. It is used for the next payment, bank review, audit and preparation of reporting, so the participants' decision remains linked to the actual movement of funds.

Sequence and main stages of providing the service

1. confirm profit and the distribution period
2. check the composition and status of recipients
3. document the participants' decision
4. calculate taxes and the advance contribution
5. make the payments and file the reporting
6. assemble a single payment file

What to prepare

• financial statements and profit data
• charter and corporate decision
• register of participants and bank details
• calculation of personal income tax, military levy and corporate profit tax
• tax residence certificate for a foreign recipient

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