Under the recent amendments to the Tax Code both gifts and inheritance made/passed to the extended family members after 1st January 2017 are exempt from the personal income tax in Ukraine. For the purposes of this exemption the extended family members are:

• Siblings
• Grandparents
• Grandchildren

Before these amendments only gifts and inheritance to immediate family members (parents, spouses, and children) were exempt from the personal income tax. And now the tax exemption applies to a broader group of recipients covering both immediate and extended family members.

The above tax exemption applies only to Ukrainian tax residents (i.e., when both the grantor and the recipient are residents).

For further information please contact Asters' partner Constantin Solyar, 
senior associate Maryna Golovko and junior associate Roman Podzizei.