: :inin Kyiv (EET)

Ministry of Social Policy sees no opportunities yet for abolition of pension taxation

The Ministry of Social Policy still does not see opportunities to cancel the taxation of pensions, Social Policy Minister Andriy Reva said at a press conference in Kyiv.

”We still cannot abolish the taxation of pensions, but this question will be on the agenda of the Cabinet of Ministers in the future,” he said.

According to Reva, difficulties in abolishing taxation are associated with a significant deficit of the Pension Fund at the level of UAH 145 billion, which is to be financed from the state budget.

As UNIAN reported earlier, since March 1, 2014 Ukraine has imposed income tax with regard to pensions exceeding the minimum wage by more than three times. As of January 1, 2016 it amounted to UAH 4,134 ($166), and from May 1 – UAH 4,350 ($175). Taxation at a rate of 15% is applied for the amounts of pension payments that exceed three minimum wages.

On June 2, the Verkhovna Rada adopted the bill on raising the amount of pensions that are subject to taxation from UAH 4,350 ($175) to UAH 10,740 ($432) and introduced a tax rate of 18% for the sum that exceeds this amount. Also, the parliament has not abolished limitations on payments of pensions to working pensioners. On June 10, President of Ukraine Petro Poroshenko signed the law.


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