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Out of a turnover of UAH 5 million, only UAH 720 thousand will remain after taxes. What charges does an average LLC pay in Kyiv - infographic

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An average Kyiv LLC with 5 employees and UAH 5 million in turnover has UAH 720 thousand left over after paying VAT, income tax, salaries and wages.

According to estimates by UNN , an average LLC in the capital with a turnover of UAH 5 million (excluding VAT) has only UAH 720 thousand left in its accounts after paying all tax charges and expenses.

In order to calculate what and how many taxes an average LLC in Ukraine pays , we took a Kyiv-based company on the general taxation system, a VAT payer with a total turnover of UAH 5 million (excluding VAT). 

In addition, the criteria include 5 officially registered employees, each of whom receives UAH 20 thousand in salary (not in cash, but from the LLC's point of view, before taxes on this amount). Let's assume that the LLC purchased goods without VAT for UAH 4 million.

Taking into account these criteria, the total payroll of such an enterprise is UAH 100 thousand. From it, the LLC pays 18% of personal income tax (PIT) and 1.5% of the military fee,  i.e. UAH 19.5 thousand in deductions. The company also pays 22% of the unified social contribution (USC) from the payroll, or UAH 22 thousand of accruals.

If we assume that the LLC purchased goods worth UAH 4 million, then 20% VAT,  of this amount will be UAH 800 thousand. After selling goods worth UAH 5 million to the company, 20% VAT will amount to UAH 1 million. In the end, the VAT payable will be UAH 200 thousand. 

To calculate the profit of an LLC, you need to subtract UAH 4 million from the income of UAH 5 million, which was used to purchase goods,  as well as the sum of the total payroll and unified social tax, i.e. UAH 122 thousand. The end result is a profit of UAH 878 thousand. This profit, in turn, is subject to 18% income tax, which amounts to UAH 158 thousand. To calculate the income tax, the amount of turnover without VAT is taken.

Taking into account all the costs of goods and taxes, the company has only UAH 720 thousand left in its accounts. 

This is the case if the LLC has no operating expenses, such as employee mobile communications or office rent.

It should also be borne in mind that, depending on the type of activity, a company may also have to pay excise, rent, land or real estate taxes.

Recall

Ukrainians in a poll by UNN expressed dissatisfaction with the government's actions and tax policy, and advised the head of the Verkhovna Rada's Tax Committee, Danylo Hetmantsev, on what other new taxes could be introduced in Ukraine. 

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