Not All Gifts Are Taxable: Who Has to Pay and What Limits Exist
In Ukraine, not all gifts are subject to taxation. The amount of tax depends on the value of the gift and who gave it.
According to Article 165 of the Tax Code of Ukraine, the value of gifts up to 25% of the minimum wage established by law as of January 1 of the reporting year is not included in the total monthly or annual taxable income of an individual.
In 2026, the non-taxable amount is 2,161.75 UAH. If the value of the gift does not exceed this amount, it does not need to be declared or taxed.
The exemption applies to items, goods, certificates, prizes, and other gifts. However, it does not apply to cash gifts — money is taxed on general grounds regardless of the amount.
The size of the tax liability depends on the status of the donor. If the gift is received from a first- or second-degree family member — children, husband or wife, parents, siblings, grandparents — the tax rate is 0%.
If the gift is received from a third party or a distant relative, a 5% personal income tax and a 5% military tax apply.
If the gift comes from a non-resident of Ukraine, the recipient must pay 18% personal income tax and 5% military tax.
In most cases, the obligation to declare income and pay tax lies with the recipient of the gift. However, if a legal entity, individual entrepreneur, or company gives a gift to their employee, the employer acts as the tax agent. They must fulfill the requirements of tax legislation.
As previously reported by Judicial and Legal Newspaper, foreigners who inherit or receive property as a gift from Ukrainian citizens must consider special taxation rules. Before formalizing inheritance or a gift agreement, it is necessary not only to pay taxes but also to confirm this with documentation. Otherwise, the notary cannot issue a certificate of inheritance or certify the gift agreement.
According to paragraph 174.6 of Article 174 of the Tax Code of Ukraine, a gift in the form of property that a non-resident receives from a resident of Ukraine is taxed under the same rules as inheritance.
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