The Verkhovna Rada adopted the Law “On the State Budget of Ukraine for 2027” (Draft No. 12345) in the second reading on 30 October 2026. The budget sets the statutory minimum wage (мінзарплата) at UAH 9,500 per month from 1 January 2027 (up from UAH 8,000 in 2026) and the subsistence minimum (прожитковий мінімум) for able-bodied persons at UAH 3,250 (up from UAH 2,900). These parameters directly drive the calculation base for Unified Social Contribution (ЄСВ) minimums, personal income tax (ПДФО) non-taxable thresholds for certain categories, and the military tax (1.5%) floor. The budget also forecasts a 12% increase in tax revenues to UAH 2.1 trillion, relying on improved VAT compliance from e-invoicing and a one-off “defense contribution” of 5% on net profits > UAH 10M for large corporations. The law takes effect 1 January 2027; the minimum wage increase triggers automatic recalculation of accruals for January payroll processed in February 2027.
Key Takeaways
- ЄСВ Minimum Contribution Surge: The minimum monthly ЄСV payable by employers (22% of minimum wage) rises from UAH 1,760 to UAH 2,090. For FOP-1 (single tax group 1), the minimum annual ЄСВ increases from UAH 21,120 to UAH 25,080, affecting 1.2M individual entrepreneurs.
- Defense Contribution Mechanics: The 5% surtax on corporate profits > UAH 10M applies to the tax base after standard CPT deductions but before loss carryforwards. It is non-deductible for CPT purposes and payable quarterly with the CPT advance payments. Estimated yield: UAH 45B in 2027.
- Subsistence-Linked Benefits: The higher subsistence minimum increases the threshold for tax-free social benefits (e.g., child birth assistance, disability payments) and the income level below which ПДФО is not withheld for certain vulnerable groups (Art. 165.1.34 TCU).
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement