The Cabinet of Ministers has initiated amendments to the tax legislation that foresee a complete tax exemption for the state aid ‘eSADok’. The corresponding draft law has already been submitted for consideration to the Verkhovna Rada.
This is reported by Finway
“The decision is aimed at reducing the financial burden on families while also allowing them to more easily balance work with child-rearing. Essentially, the state is proposing to increase family income without raising the payments themselves.”
Details of the Legislative Initiative
According to the new proposal, funds received under the ‘eSADok’ program will not be included in the total taxable income of citizens. The tax exemption will apply to payments during the following periods:
- before the birth of the child,
- after childbirth,
- during childcare.
How This Will Affect Families
If the draft law is adopted, parents will be able to receive all payments under the ‘eSADok’ program without any tax deductions. This will increase the actual income of families with young children without any additional increase in the amount of payments.
It is worth noting that starting from January 1, 2026, a law is already in effect in Ukraine that provides for a comprehensive update of the social support system for families with children. The document establishes a one-time aid of 50,000 hryvnias upon the birth of a child, as well as introduces new payment standards for pregnant women and new mothers.