Employer compensated for the pre-employment medical examination: is it needed to pay taxes?

Press service of the State Tax Service of Ukraine, published 16 September 2026 at 15:02 Chapter: News

If a person paid for a preventive medical examination on their own before employment, and after hiring employer returned spent funds, such compensation is taxable income of the employee.

This is considered additional benefit and included in the employee’s total taxable income.

From the compensation amount, the employer, as a tax agent, withholds:

- personal income tax – 18%;

- military levy – 5 %.

That is, the employee receives compensation already taking into account withheld taxes. Employee does not need to pay personal income tax and military levy independently or submit annual declaration just because the employee receives such compensation.

Reference.

At the same time, there is a different situation for employees of certain professions, industries and organizations, when Ukrainian legislation provides for obligatory preliminary preventive medical examinations before employment.

If the employer directly bears costs of such obligatory medical examination, its cost is not included in the employee’s taxable income. That is, the personal income tax and military levy are not charged in this case.

List of professions, industries and organizations whose employees must undergo such obligatory preventive medical examinations is determined by Resolution of the Cabinet of Ministers of Ukraine № 559 as of 23.05.2001.