The Expert Explained "Pension Taxation" in Ukraine: What Is Really Happening.

Recently, false information about pension taxation has appeared in the media. Pension law expert Serhiy Korobkin debunked these rumors and explained the real situation with pension taxation in Ukraine.

Korobkin stated that the news regarding taxation of pensions exceeding three minimum wages is erroneous. He explained that someone found an old clarification from the State Tax Service and spread this news, which was then reprinted by other sites.

The expert emphasized that this clarification dates back to 2015 and refers to outdated norms of the Tax Code. He stressed that as of today, this norm is no longer in effect.

Korobkin recalled that in 2018, the Constitutional Court recognized the taxation of pensions as illegal and contrary to the principles of the Constitution. He noted that introducing pension taxation and changing the amount from which taxation begins contradicts the principles of legal certainty, predictability, and fairness.

Pensioners Identification / Photo: Unsplash

After the Constitutional Court's decision, pension taxation was removed from the Tax Code. Currently, no tax is levied on pensions, the journalist noted.

Korobkin pointed out that there are limitations on the maximum size of pensions and payments for working pensioners. He explained that this is not a tax but a way to save budget funds. As of today, the maximum pension is 23,610 UAH, which is equal to 10 subsistence minimums.

Regarding future changes, Korobkin noted that the Verkhovna Rada is expected to adopt final changes to the Tax Code, which involve increases in taxes and the military levy rate. However, pension taxation is not anticipated according to the document draft, the journalist stressed.