Background
Scholarships paid by enterprises and organizations to students, cadets, postgraduates or adjuncts are treated under special rules in Ukraine when it comes to personal income tax (PIT) and military levy. (tax.gov.ua)
What’s the rule in 2026?
- A non-taxable limit up to 4,660 UAH per month for scholarships. Amounts up to this limit are exempt from both PIT and the military levy. (tax.gov.ua)
- Any excess amount over 4,660 UAH is subject to:
- 18% personal income tax, and
- 5% military levy.
- The tax withholding and reporting are handled by those paying the scholarship — the scholarship provider acts as tax agent, not the recipient. Recipients don’t need to declare separately. (tax.gov.ua)
For international / foreign employers or organizations
If an overseas donor organization contracts a Ukrainian educational institution or enterprise to deliver stipends, it’s critical to verify:
- Whether the scholarship amount will exceed the UAH threshold,
- Whether the payer qualifies as a tax agent under Ukraine’s tax code,
- Whether PIT and military levy obligations are properly withheld and remitted.
Practical example
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Scenario “A”: A scholarship of 6,000 UAH/month is paid. Only 1,340 UAH is taxable (6,000 − 4,660). The payer must withhold 18% on 1,340 UAH (≈ 241.20 UAH) for PIT, and 5% (≈ 67 UAH) for military levy.
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Scenario “B”: Scholarship under threshold – e.g. 4,500 UAH – no tax or levy.
Compliance tips
- Keep accurate records of all scholarship payments, with dates, recipient status, and amounts.
- Confirm which categories of students are covered by this rule: pupils, students, cadets, postgraduates and adjuncts.
- Where scholarships are part of broader fellowship or grant programs, make sure they don’t include “hidden” payments (e.g. equipment or housing allowances) that might push above UAH limits.
- Ensure payroll, accounting, or invoicing systems are updated so payments are correctly classified.
Bottom line
These scholarship rules offer a valuable tax break for businesses in Ukraine supporting students and education. But the exemption only applies up to the stated limit. Proper withholding and correct classification is essential to avoid penalties or surprises.