Mandatory Accident Insurance Contributions: Are They Subject to Personal Income Tax (PIT)?

Amounts paid as mandatory insurance contributions for a taxpayer under the law—except for state pension insurance contributions or general mandatory state social insurance contributions—are not included in the total monthly (annual) taxable income of the taxpayer.

According to the State Tax Service of Ukraine (DPS), civil liability insurance for vehicle owners is mandatory under the Law of Ukraine No. 1961-IV "On Mandatory Civil Liability Insurance of Land Vehicle Owners," dated July 1, 2004.

Therefore, as stated by the DPS, amounts paid by an enterprise for mandatory insurance of its employees under an insurance contract are not included in the employees' total monthly or annual taxable income.

However, in Appendix 4DF to the Tax Calculation of Income Amounts Accrued (Paid) to Taxpayers and the Amounts of Withheld Tax, as well as the Amounts of Accrued Unified Social Contributions (approved by the Order of the Ministry of Finance of Ukraine No. 4, dated January 13, 2015), such contributions must be reported under income code "132."