New law: car sales within six months taxed at 23%

Changes in taxation of vehicle disposal

New rules for tax payments upon the sale of cars have been introduced in Ukraine. According to the approved legislation, if an owner sells a vehicle less than 183 days after registering it in their name, they will have to remit a significant portion of the proceeds to the budget.

Tax burden rate

The total tax rate for such transactions is 23%. This amount consists of two components: 18% personal income tax (PIT) and a 5% military levy. Even when selling a first car that has been owned for a short period, the taxpayer is obliged to deduct these percentages from the transaction value.

Calculation example

To understand the scale of the changes, let us consider a specific situation. If an individual buys a car and decides to sell it three months later for 500,000 hryvnia, under the new conditions they will have to pay 115,000 hryvnia in taxes and levies. This demonstrates how the rapid disposal of property now carries financial consequences for the owner.

Legislative basis

Such requirements emerged as a result of the Verkhovna Rada adopting a law in full, which establishes the mandatory payment of personal income tax and the military levy when selling a car within six months (183 days) of registering the right of ownership.