Taxation of the National Pension Fund

Taxation scheme for the system of non-governmental pension provision in Ukraine complies with the vast majority of countries with a reformed pension system.
Taxable income of both individuals and legal entities is decreased by the amount of contributions remitted to pension funds.
Tax relief in the amount of 15% is stipulated for legal entities who are contributors with relation to the labour remuneration fund of employees (Verkhovna Rada has registered the corresponding draft of Law).
Tax relief in the amount of 15% from the accrued income is stipulated for individuals pursuant to the Law of Ukraine “On Taxation of Individual Income”.
Investment income of the fund itself is exempt from taxation.

The amounts of non-governmental pension payouts are included in the income of members and are subject to taxation on common basis.
Furthermore, information system on individual accounting will be build in such a manner that the contributions remitted by the enterprises or individuals without the use of relief is not taxed at the moment of paying out the pension.
An example of such contributions is represented by pension contributions of individuals at the expense of income received instead of income accrued performed via the banking network of Ukraine or the employer remitting higher level contributions in favor of individual employees which exceed the tax relief and are performed at the expense of income.
For more information please call: (044) 230-48-12
E-mail: info@pension-invest.com