The abolition of pensions taxation – to be or not to be?

Yesterday (May 19^th, 2016) the draft-law on this issue was adopted.

Now there exists an article 164.2.19 of the Tax Code of Ukraine, which says that month pensions (if their sum is more than 3 minimum salaries) is a basis for taxation. The draft-law proposes to abolish this norm and let pensioners avoid paying taxes on their pensions. The rule spreads over pensioners of all categories and it doesn’t matter what the sum of the pension is.

Today the tax counts 15% from the sum of the pension.

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