What pensions are subject to taxation?

18 August 2015 17:00  320104864 0105899
What pensions are subject to taxation?

One of the most urgent issues today is the taxation of pensions of citizens and working pensioners. The head of the department of revenues and fees from individuals of Uzhgorod STI Vasyl Symchera explains the procedure for payment of tax on personal income and military fee on pensions of individuals.

Since January 1, 2015, pensions received by taxpayers from the Pension Fund of Ukraine in excess of three times the minimum wages shall be taxed.

- According to the law, the tax on personal income and the military fee shall be paid only on that part of the amount which exceeds three minimum wages - today it is 3,654 UAH, - Vasyl Symchera said.            

Innovations relating to pensions also affected pensioners who are private entrepreneurs.

- If the pension of an entrepreneur is more than 150% of the subsistence level of persons unable to work, that is more than 1,423.5 UAH, then 15% shall be deducted from the excess amount. These funds are accumulated in the pension fund at the place of registration" - the tax officer informs.

Note that the taxation of pensions is carried out by the Pension Fund of Ukraine automatically, that is pensioners do not need to contact the tax office or the Pension Fund office on these issues.

Please note that pensions paid to I and II groups disabled, III group disabled veterans and combatants, persons covered by the paragraph 1 of Art. 10 of the Law of Ukraine "On status of war veterans, guarantees of their social protection" and persons covered by paragraph 3 of the Final Provisions of the Law shall not be subject to taxation.

By Uzhgorod STI

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