Social tax benefit from the personal income tax

Press service of the State Tax Service of Ukraine, published 12 January 2022 at 15:00 Chapter: News

Subsistence level for able-bodied persons in the amount of 2481 UAH is established from January 1, 2022 according to Article 7 of the Law of Ukraine as of 02.12.2021 № 1928-IX “On the State Budget of Ukraine for 2022”.

Sub-paragraph 169.1.1 of Paragraph 169.1 Article 169 of the Tax Code of Ukraine (hereinafter – TCU) stipulates that any taxpayer has a right to reduce amount of total monthly taxable income received from one employer in the form of salary by the amount of social tax benefit in the amount equal to 50% of the subsistence level for able-bodied persons (calculated per month), established by law on January 1 of the reporting tax year.

Maximum amount of income to which social tax benefit is applied is 3470 UAH in 2022; this amount is calculated as the sum of monthly subsistence level, valid for able-bodied persons on January 1 of the reporting tax year, by 1.4 and rounded to the next 10 UAH – (2481 ✕ 1.4) (Sub-paragraph 169.4.1 Paragraph 169.4 Article 169 of the TCU).

That is amount of the total monthly taxable income in the form of salary is reduced by amount of social tax benefit in 2022 in the amount of:

- basic (general) social tax benefit for any taxpayer –  is a half (50%) of the subsistence level for able-bodied persons (per month), established by law on January 1 of the reporting tax year – 1240.50 UAH = (2481✕ 50%);

- social tax benefit for a taxpayer who maintains two or more children under the age of 18 will be 100% of the amount of basic (total) social tax benefit per each such child – 1240.50 UAH;

- social tax benefit for a taxpayer who is a single mother (father), widow (widower) or guardian, trustee – per child under 18 years of age and for payer who maintains a child with a disability – per each such child under 18 years of age – 150% of the amount of basic (general) benefit – 1860.75 UAH = 150% ✕ (2481 ✕ 50%);

- social tax benefit for taxpayers defined in Sub-paragraph 169.4.1 Paragraph 169.4 Article 169 of the TCU (Heroes of Ukraine, participants in hostilities during the Second World War) is 200% of the total benefit – 2481 UAH = 200% ✕ (2481.00 ✕ 50%)

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