Who pays inheritance tax, and how much?

The tax inspectorate authority in Holosiiv district points out that pursuant to the Ukrainian legislation the property inherited can be charged at three different income tax rates set for individuals: a zero rate, a 5 % rate, and 15 % or 17 % rate.

The zero rate is applied to:

– family members of the first degree of kinship (husband or wife, parents and children, including  adopted), who inherit any property;

– a handicapped person of the first degree of kinship or person who has a status of an orphan child or parentless child, in case of inheriting immovable property, personal chattels, insurance indemnity;

– a handicapped child who inherits movable or immovable property.

The 5 % rate is applied to any property, if the successor is not a family member of the heir of the first degree of kinship. In other words, all family members, who are not husbands, wives or children (including adopted), should pay the 5 % tax rate of individual income when coming into inheritance.

If succession or gift is obtained by a heir from a non-resident testator, or by a non-resident heir from a testator-resident, the tax rate will be 15 or 17 %.

The citizens, who have obtained inheritance money or a gift as income taxable at a zero rate, are liable to neither include the value (amount) of the said property inherited or gift to the total annual taxable income nor file annual tax returns to declare the property and income status.

All other citizens, who obtain inheritance or a gift as income are obliged to declare such revenue until May 1 of the year following the year when the income was obtained as inheritance/gift, and pay income tax until August 1.