How to organize the accounting process in your company in Kyiv

Efficiently organizing the accounting process is essential for businesses operating in Kyiv, Ukraine. Proper accounting ensures compliance with tax regulations and provides valuable insights into financial performance. 

This article aims to guide businesses through the process of organizing their accounting practices while shedding light on the types of taxes typically paid by businesses and the reporting requirements mandated by government authorities.

If you are looking for an answer to the question not how to do it, but who can take on such responsibility - you will also find the answer with us. Our company has been offering accounting and legal services to businesses in Ukraine for over 15 years.

Related article: Financial and tax planning for foreign business in Ukraine

What taxes are usually paid by business in Kyiv?

Types of Taxes Business Usually Pay:

1. Corporate Income Tax: Companies in Kyiv are subject to corporate income tax, which is currently set at a flat rate of 18%. This tax is levied on the company's net profit, calculated based on the Ukrainian accounting principles and tax legislation.
2. Value Added Tax (VAT): VAT is a consumption tax levied on the supply of goods and services in Ukraine. Most businesses are required to charge VAT on their sales and remit it to the government. The standard VAT rate in Kyiv is 20%, with reduced rates of 7% and 0% applicable to specific goods and services.
3. Payroll Taxes: Employers must contribute to various social security funds and withhold income tax from their employees' salaries. Social security contributions cover pensions, health insurance, and other social benefits. The income tax rates range from 5% to 20%, depending on the employee's income level.
4. Property Tax: Businesses that own or lease real estate in Kyiv may be liable for property tax. The tax is calculated based on the property's assessed value and the applicable tax rate, which can vary depending on the location and type of property.
5. Excise Tax: Certain goods, such as tobacco products, alcoholic beverages, and fuel, are subject to excise tax in Ukraine. Businesses engaged in the production or importation of these goods must pay the excise tax at the prescribed rates.

The taxation system, as well as possible tax rebates or preferences, will depend on the type of your activity and on the business scheme. We will help you choose the best option for you.

Related article: How to avoid double taxation in Ukraine?

The task of an accountant: what reports should be submitted in Ukraine regarding the work of a business?

Reporting to Government Authorities:

1. Financial Statements: Businesses in Kyiv must prepare annual financial statements in accordance with Ukrainian accounting standards. These statements include the balance sheet, income statement, and cash flow statement, providing an overview of the company's financial position and performance.
2. Tax Returns: Regular filing of tax returns is necessary to report and pay various taxes. Corporate income tax returns, VAT returns, and payroll tax reports should be submitted to the relevant tax authorities. The frequency of filing and payment depends on the specific tax type and the business's turnover.
3. Social Security Reporting: Employers are required to submit monthly reports to the social security authorities, outlining the salaries and social security contributions made on behalf of their employees. These reports ensure compliance with social security obligations.
4. Customs Declarations: For businesses engaged in import or export activities, customs declarations must be prepared and submitted to the customs authorities. These declarations provide information about the goods being imported or exported and facilitate the calculation and payment of customs duties, VAT, and excise taxes, if applicable.

This is not the whole list of reports. It can be annual, quarterly, monthly. The accountant must clearly and accurately monitor the movement of funds in the company and record everything in a certain way.

The advantage of working with us is that the accountant does not work alone, at his own peril and risk. His actions are always closely monitored by a professional lawyer who can advise on ways to optimize in time.

Related article: What taxes does a foreigner pay in Ukraine in 2023?

Services of accounting and legal services for business in Kyiv

Organizing the accounting process is crucial for businesses in Kyiv to maintain compliance with tax regulations and ensure accurate financial reporting. By understanding the types of taxes typically paid by businesses and the reporting requirements imposed by government authorities, businesses can streamline their accounting practices and avoid penalties or legal complications. Seeking professional guidance from accountants or tax advisors familiar with Ukrainian regulations can greatly assist in navigating the complexities of accounting and taxation in Kyiv.

Our company offers you:

• business registration in the form you need;
• development of a personal business structure for your security;
• obtaining all necessary licenses and permits for business;
• solution of migration issues for employees or business owner - residence permit, work permit, etc.;
• maintaining all accounting and other reporting in the company;
• maintaining personnel records in the company;
• legal advice on business matters;
• personal tax optimization for the business owner, etc.

If today you are looking for a reliable advisor and partner regarding doing business in Ukraine, please contact us!