Ukraine payroll Tax Calculation from July 2026: new forms, monthly filing for NGOs

From July 2026, Ukrainian NGOs, charitable foundations and other legal entities file the payroll Tax Calculation (personal income tax, military levy and unified social contribution) on a new form every month: first for July 2026, within 20 calendar days after the month end. Sole proprietors (FOP) move to a quarterly calculation broken down by month, and monthly reports already filed do not need to be duplicated.

The Ministry of Finance approved the new forms by Orders No. 243 and No. 284, which took effect on 17 July 2026. For NGOs this is not only about staff salaries: the calculation also covers payments under civil-law contracts with consultants, trainers and experts on grant projects. Below we explain the transition and what an auditor reconciles.

What has changed

On 14 July 2026 the State Tax Service (STS) announced new forms of the Tax Calculation of income accrued (paid) to individuals, tax withheld and the unified social contribution accrued, together with an updated Procedure for completing and filing them. The announcement: State Tax Service of Ukraine.

• The changes were made by Ministry of Finance Orders No. 243 of 07.05.2026 and No. 284 of 26.05.2026, both effective from 17 July 2026.
• The new forms apply from 1 August 2026.
• Tax agents other than sole proprietors and independent professionals use the new form starting with July 2026.
• Sole proprietors and independent professionals file a new quarterly calculation with figures broken down by month.
• The calculation is filed only if income was accrued or paid to individuals in the reporting period.

The legal basis is paragraph 51.1 of the Tax Code (as amended by Law No. 4536-IX of 16.07.2025): tax agents and unified social contribution payers, other than sole proprietors and independent professionals, file within the deadlines for a tax month, and sole proprietors within the deadlines for a tax quarter. For a month the deadline is 20 calendar days after the last day of the month (subparagraph 49.18.1). The rules can be checked on zakon.rada.gov.ua. We explained payroll taxes in Payroll taxes in Ukraine in 2026: personal income tax, military levy, unified social contribution.

Who is affected

• NGOs, charitable foundations, religious organisations and condominium associations with employees;
• NGOs paying consultants, trainers and translators under civil-law contracts;
• organisations paying individuals other income reported in the calculation;
• sole proprietors with employees, including grant project contractors.

Transition: how to avoid duplicate filings

The STS separately explained the rules for sole proprietors that filed the monthly form before the quarterly one was launched:

• until the quarterly form was introduced, sole proprietors could file on the existing monthly form, and the STS accepted such filings for April, May and June 2026;
• if monthly calculations were filed for every month of the quarter, no quarterly calculation is needed;
• if monthly calculations were filed for only some months, the quarterly calculation is filed only for the missing months;
• the STS also reminded that the report for Q2 2026 was due by 10 August.

NGOs registered as legal entities have no transitional choice: from July 2026 onwards they file monthly on the new form.

What to do and by when

1. Make sure the accounting software has been updated for the new form and that the July 2026 calculation was filed on it.
2. Set up a calendar: a monthly calculation within 20 calendar days after each month end. If the last day falls on a weekend, the general rule moves it to the next business day.
3. Reconcile every month: salaries and civil-law fees in the calculation against payroll sheets and acts, and personal income tax, military levy and social contribution against payment orders.
4. For grant projects, split staff by project in internal payroll records so the amounts in the calculation can be allocated to donor budgets.
5. If no income was accrued or paid to individuals in a month, record that in the books: no calculation is filed in that case.

Common mistakes and risks

• July on the old form. For tax agents other than sole proprietors, the new form applies from July 2026.
• A quarterly rhythm out of habit. A legal entity files monthly. A missed deadline means a late filing penalty under paragraph 120.1 of the Tax Code: UAH 340, or UAH 1,020 for a repeat within a year.
• Forgotten civil-law contracts. A consultant’s fee is income of an individual and must be in the calculation together with the taxes withheld.
• Duplicates by sole proprietors. There is no need to file a quarterly calculation for months already covered by monthly ones.
• Unnecessary nil returns. If no income was accrued or paid to individuals, no calculation is filed.

What the auditor and the donor will check

In a project audit we reconcile staff costs in the donor report with the calculations filed with the STS, tax payment orders and timesheets. A difference between the salary amount in the donor financial report and the amount in the calculation is one of the first questions an auditor asks. Monthly filing makes this reconciliation more precise, but errors are now visible in each month separately.

FAQ

How we help

We run payroll and HR records for NGOs, file monthly calculations and prepare staff cost reconciliations for donors. See payroll outsourcing, accounting for NGOs and grant audit. For NGO accountants we run free webinars for NGOs.

Prepared by the MK Audit team