Gift Tax in Ukraine: Who Pays and How Much

Understanding Ukraine's Tax Rules on Gifts

According to ХВИЛЯ: Ukrainian law requires citizens to declare gifts and pay applicable taxes on them, as stipulated by the Tax Code. According to Article 165, property received for free or at a significant discount, including cash, is subject to taxation. This regulation on taxing gifts has been part of Ukrainian legislation since 2011. These rules are part of broader efforts to formalize personal income and ensure budget revenues.

How Gift Taxation Works

For non-monetary gifts, Ukrainians do not have to include their value in taxable income if it does not exceed 25% of the minimum wage as of January 1 of the reporting year. With the minimum wage set at 8,647 hryvnias for 2026, the tax-free threshold for a gift that year starts at 2,161.75 hryvnias. Tax is levied only on the amount exceeding this non-taxable limit.

It is important to note that cash gifts are taxed from the first hryvnia, and the 25% rule does not apply to them. Tax authorities primarily focus on high-value assets requiring registration, such as real estate or vehicles. The tax burden depends on the relationship to the giver:

• A 0% tax rate applies to gifts from first and second-degree relatives, including children, spouses, parents, siblings, grandparents, and grandchildren.
• If the giver is not a close relative, a rate of 5% Personal Income Tax (PIT) plus a 5% military levy applies.
• The highest rate, 18% PIT and 5% military levy, is applied to property received from foreign nationals.

These gift taxation rules reflect the state's aim to monitor citizen income and secure budget contributions. Citizens must be aware of their tax obligations, especially given legislative changes that can impact financial planning. Knowing the non-taxable limits and tax rates can help avoid misunderstandings and potential penalties for non-compliance.