What will change from January 1, 2020 in Ukraine – an increase in taxes, salaries, a living wage and fines
Information from official sources: reports of the State Tax Service, decisions of the Verkhovna Rada and the Cabinet of Ministers
Starting January 1, 2020, Ukraine changes a number of mandatory payments to the budget, increases tax rates, and also the cost of delivering pensions through Ukrposhta branches. What will change from January 1, 2020 in Ukraine, you can find out from our article on the capital real estate portal 100realty.ua.
Information about what will change from January 1, 2020 in Ukraine is taken from official sources: reports from the State Tax Service, decisions of the Verkhovna Rada, the Cabinet of Ministers and other government bodies.
Earlier, the Verkhovna Rada adopted a law on amendments to the rules for evaluating real estate. The bill is awaiting a second reading and signature by the president. We are talking about the automatic generation of an evaluation report. If the law comes into effect on January 1, 2020, lawyers predict a temporary stoppage of the real estate market – players will need time to adapt to the new system.
Related article: New rules for assessing real estate in Ukraine – what changes the new law of the Rada
Also in 2020, the replacement of old money will continue. Since December 20, the National Bank of Ukraine has already put into circulation a coin of 5 hryvnias and an updated bill of 50 hryvnias. Already in 2020, a new design of a bill in 200 hryvnia will appear.
What will change from January 1, 2020 in Ukraine – key social indicators
According to the decision of the parliament in the fiscal year 2020, the following social indicators were established:
the minimum wage in Ukraine from January 1, 2020 – 4723 UAH .;
the minimum wage in Ukraine on an hourly basis – 28.31 UAH / hour;
unified social contribution (insurance payment) in Ukraine from January 1, 2020 – 1039.06 UAH / month.
Cost of living in Ukraine in 2020
from January 1, 2020 – 2027 UAH.
from July 1, 2020 – 2118 UAH.
from December 1, 2020 – 2189 UAH.
Cost of living for children under 6 years old
from January 1, 2020 – 1779 UAH.
from July 1, 2020 – 1 859 UAH.
from December 1, 2020 – 1921 UAH.
Living wage for children from 6 to 18 years
from January 1, 2020 – 2218 UAH.
from July 1, 2020 – 2318 UAH.
from December 1, 2020 – 2395 UAH.
Living wage for able-bodied persons
from January 1, 2020 – 2102 UAH.
from July 1, 2020 – 2197 UAH.
from December 1, 2020 – 2270 UAH.
Cost of living for persons with disabilities
from January 1, 2020 – 1638 UAH.
from July 1, 2020 – 1,712 UAH.
from December 1, 2020 – 1769 UAH.
Also, the Ukrainian government is considering increasing the cost of living to 4200 UAH per month. The size of fines, salaries and social benefits will not be tied to the size of the subsistence level.
Related article: What will happen to the prices of apartments and new buildings in Kiev in 2020: forecast from market experts
Simplified tax rates in Ukraine from January 1, 2020
The State Tax Service of Ukraine also reports on rates for “simplists” in the new year:
single tax rate for group I – 210.20 UAH;
single tax rate for group II – 944.60 UAH.
Minimum wage earner paid from January 1, 2020:
UAH 5,726.06 (of which the minimum wage is UAH 4,723 and ERU 1,039.06);
individual income tax (18%) – UAH 850.14;
military duty (1.5%) – 70.85 UAH.
Real estate tax in 2020
The tax rate on real estate in 2020 was maintained – no more than 1.5% of the minimum wage per 1 square meter. That is, the maximum rate of real estate tax in 2020 will be 70.84 UAH / sq.m.
Related article: How will Ukrbud’s facilities be completed: which complexes will be commissioned first and for what money they will be completed
Tourist tax from January 1, 2020
The tourist tax rates in 2020 are also established:
up to 0.5% of the minimum wage for domestic tourism – 23.61 UAH .;
up to 5% of the minimum wage for inbound tourism – 236.15 UAH.
What will change from January 1, 2020 in Ukraine – new rates for the delivery of pensions
By its decision, the Cabinet of Ministers established a new tariff for the delivery of pensions to citizens of Ukraine from January 1, 2020. The officials decided that Ukrposhta will deliver pensions at a rate of 1.15% for pensioners living in cities and 2.3% for pensioners from rural areas.
The government explained the increase in tariffs by the fact that the cost of delivering pensions has not been reviewed for the past 15 years and since 2017 does not cover Ukrposhta expenses for the delivery of pensions.
From March 1, 2020, pensioners will automatically recount pensions. The recalculation formula was approved in October 2017 as part of the pension reform. It takes into account seniority, a person’s salary level and the average salary level in the country – a special indicator for calculating pensions.
Budget expenditures for the Pension Fund are planned in the amount of UAH 172.6 billion. However, according to the Ministry of Social Policy, this may not be enough.