Gifts in Ukraine 2025: when to pay taxes and who is exempt
10 March 15:52
In 2025, Ukraine will have clear rules for taxing gifts. This is reported by Komersant ukrainskyi with reference to the professional portal Accounting for the Budget.
The amount of taxes depends on the following factors
- type of gift (monetary or in-kind);
- the value of the gift (up to or above the established limit);
- the degree of kinship between the donor and the recipient.
To avoid tax violations and penalties, it is important to know when to pay taxes and when not to.
How are in-kind gifts taxed?
In-kind gifts are any property, goods, or services received free of charge. The taxation of such gifts depends on their value.
If the value of the gift does not exceed UAH 2 thousand, no taxes are paid, regardless of who the donor is. This also means that the recipient is not obliged to declare this gift in the tax return.
If the value of the gift exceeds UAH 2 thousand, the person will have to pay personal income tax (PIT) in the amount of 18% of the value of the gift and a military fee of 1.5%.
For example, if a person received a gift in the form of a laptop worth UAH 15 thousand, the tax amount will be UAH 2,535, where UAH 2,340 is personal income tax and UAH 195 is military duty.
According to the law, the recipient must declare such a gift by May 1 of the following year and pay taxes on their own.
How monetary gifts are taxed
Cash gifts are subject to taxation regardless of the amount. Declaration of such gifts is mandatory if they are given by an individual.
If the money is donated by an individual (e.g., a friend), the recipient must pay taxes on their own. If the gift is given by a legal entity (e.g., an employer), the company acts as a tax agent and immediately deducts taxes.
How does the degree of kinship affect taxes?
The closer a relative gives a gift, the less taxes you will have to pay.
Gifts from:
- parents, children, spouses;
- siblings;
- grandparents and grandchildren.
Gifts are taxed from:
- friends, acquaintances, colleagues;
- distant relatives (cousins, aunts, etc.).
If a gift is received from a family member of the first or second degree of kinship, it does not need to be indicated in the tax return.
How is the value of a gift determined?
Basic rules of valuation:
- for goods and property – the market value at the time of the gift is taken;
- for real estate or cars – an expert evaluation is carried out;
- for monetary gifts, the actual amount received as a gift is taken into account.
It is important to keep receipts, receipts or other documents confirming the value of the gift, as the tax authorities may request this information in the event of an audit.
How to pay taxes correctly?
If a gift is provided by an individual, the recipient is obliged to pay taxes on their own by May 1 of the following year.
If the gift is provided by a legal entity or entrepreneur, they act as tax agents and withhold taxes when transferring the gift.
Taxes can be paid through a bank account or at the cash desks of tax offices.
Liability for non-payment of taxes
If the recipient fails to declare the gift or pay taxes, the tax service may impose fines.
Penalties:
- For late filing of a declaration – UAH 510 (first offense) or UAH 1,020 (repeated offense).
- For non-payment of tax – a fine of 10-25% of the amount of unpaid tax.
If a violation is detected during an audit, a penalty for the entire period of delay is added.
Knowing these rules will help you avoid tax problems, fines and unforeseen expenses.
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