How to financially motivate an employee by paying him a bonus, while optimizing the tax burden on this employee and the company itself – read more in the blog of Andriy Reun, Head of tax practice, on www.nv.ua.
In order to financially encourage an employee to pay him a premium, the employer has to include into budget 22% of the unified social tax (UST), which is paid at the expense of the employer (“on top” of the bonus amount). And deduct from the bonus amount 18% of personal income tax (PIT) and 1.5% of war tax.
UST is paid at the expense of the employer and is charged for an amount not exceeding 42.1 thousand UAH per month (as of November 2017). (read more, in Ukrainian).