The cost of a car to determine the rate of pension tax has increased

Administrative Law
Semenenko Eugene
04.01.2021
Law Services - The cost of a car to determine the rate of pension tax has increased

    Payment of the fee for mandatory state pension insurance upon acquisition of ownership of cars is carried out at the first state registration in Ukraine in the service centers of the Ministry of Internal Affairs.

    Payers of the fee for mandatory state pension insurance (paragraph 7 of Article 1 of the Law of Ukraine №400 / 97-VR “On the fee for mandatory state pension insurance”) are enterprises, institutions and organizations regardless of ownership, individuals, who acquire ownership of cars subject to the first state registration in Ukraine in the service centers (units of the State Automobile Inspectorate) of the Ministry of Internal Affairs.

    The object of taxation is the value of the car, determined in accordance with the contract of sale, the contract of exchange, the certificate of the customs authorities, the act of expert assessment of the value of the car, other documents confirming this value. Differentiated collection rates are set depending on the value of the object.

🔹 3% – if the value of the car does not exceed 165 living wage for able-bodied persons, established by law on January 1 of the reporting year (on 01.01.2021 – from the amount up to UAH 374,550);
🔸 4% – if the cost of a car exceeds 165, but does not exceed 290 subsistence level for able-bodied persons, established by law on January 1 of the reporting year (on 01.01.2021 – from the amount of more than 374,550 UAH to 658,300 UAH);
🔹 5% – if the cost of a car exceeds 290 living wage for able-bodied persons, established by law on January 1 of the reporting year (as of January 1, 2021 – from the amount of over UAH 658,300).

    The fee is paid from the value of the car without value added tax, if the amount of such tax is specified in the document confirming the price of the vehicle.