Upon remittance of dividends the payer has to pay to the state from its own funds advance tax at standard rate (i.e., 25%), which can be offset against its future corporate profits tax liability. Tax liability on net insurance premiums cannot be used for such offset.
The above tax does not apply where dividends are paid by way of new shares, provided that allocation of holding between shareholders remains unchanged and where dividends are paid to domestic investment funds.
Dividends received from Ukrainian companies are not taxed at the level of domestic shareholders - legal entities. For individuals, taxation of dividends should be governed by personal income tax legislation.
Dividends payable to individuals (resident or non-resident) who own privileged shares are taxed as payment of salary. Amount of such dividends can be deducted for corporate profits tax purposes.
Payment of dividends to a non-resident business entity attracts a 15% withholding tax unless a double tax treaty provides otherwise.
