Научно-методический журнал спецвыпуск №1 2021

быль к количеству страховых компаний в Украине за последние двадцать лет и определено, что страховая 
система демонстрирует высокие доходы и становится более концентрированной за счет конкурентоспособных 
страховых компаний.
Introduction
The role of the state remains a determining factor 
in the development of Ukraine’s insurance system since 
its independence. With the help of direct and indirect 
instruments of influence, it can stimulate or, conversely, 
restrain the development of the insurance system. One 
of the most effective levers of state regulation is taxes, an 
important place among which is occupied by taxes in the 
insurance sector.
Such domestic scientists as V. Bazylevych, O. Gamankova, 
O. Ostroverkha, M. Klapkiv, T. Yavorska, L. Shirinyan devoted 
their works to the issue of taxation of insurance companies. 
However, the multifaceted impact of taxes on the insurance 
system requires further scientific study and understanding 
of the changes made by legislation and the Tax Code of 
Ukraine to the taxation of profits of insurance companies.
The purpose of the article is to substantiate the 
directions of tax regulation of the insurance system as a 
component of the mechanism of its state regulation.

---

С
ПриркаПз
98
Results
If we analyze how tax rates have changed for certain 
types of insurance activities, we can identify several stages 
of evolution in the tax regulation of the insurance system 
of Ukraine since 1991 (the time of Ukraine’s independence).
The first stage
(1991—1992) was the adoption of the 
First Law of Ukraine „On the Taxation System in Ukraine”, 
according to which insurance companies, like other 
enterprises, were taxed at a total tax rate of 35%, which was 
levied on the insurer’s balance sheet profit.
Stage II 
(1992—1993) — insurance companies are taxed 
at a rate of 55 %, which is no longer charged from the 
balance sheet profit of the insurer, but from gross income.
Stage III
(1993—1994) — during the first half of this 
stage, the tax rate of insurance companies was 30 % (the 
object of taxation was the balance sheet profit); for the 
rest of the period was characterized by a change in both 
the tax rate (increased to 35 %) and the object of taxation 
(changed from balance sheet profit to gross income).
Stage IV
(1995—1997) — insurance companies are 
taxed at a rate of 30 %, which is levied on the balance 
sheet profit; In 1997, the Law of Ukraine „On the taxation 
of the enterprises profit” was adopted, according to which 
a separate mechanism of taxation of insurance companies 
was applied. The object of taxation is the gross income 
from insurance activities, which includes the amount of 
insurance premiums, insurance payments, or insurance 
premiums accumulated by insurers during the reporting 
period under insurance and reinsurance contracts in 
Ukraine or abroad. The tax rate is set at 3 % of the amount of 
gross income received from insurance activities. The gross 
income of the insurance company, taxed at the rate of 3 %, 
does not include income received by resident insurers in 
the form of insurance premiums, insurance payments, or 
insurance premiums accumulated during the reporting 
period under insurance and reinsurance contracts in 
Ukraine or abroad.
The income of non-residents received in the form of 
insurance premiums, insurance payments, or insurance 
premiums from reinsurance of risks on the territory of 
Ukraine is taxed at the rate of 15 %. The income of non-
residents received in the form of insurance premiums, 
insurance payments, or insurance premiums from risk 
insurance on the territory of Ukraine is taxed at a rate of 
30 %. According to the Law of Ukraine „On Insurance”, 
non-residents cannot provide insurance on the territory of 
Ukraine. There is inconsistency in these laws.
Stage V
(1998—2003) — adoption of the Law of Ukraine 
„On Personal Income Tax” in 2003, according to which the 
object of taxation and tax rate did not change for insurance 
companies, only the conditions of private pension 
insurance were determined (in 2004 this concept was 
replaced by „private pension provision”). With the adoption 
of this law, the idea of rating” reinsurance was introduced. 
It was assumed that payments under reinsurance 
contracts in favor of non-residents will be taxed at a rate 
of 0 % if the reinsurer’s financial reliability rating meets the 
requirements set by the Cabinet of Ministers of Ukraine, in 
other cases — at a rate of 15 % [1]. In execution of this law, 
on October 15, 2003, the relevant resolution of the Cabinet 
of Ministers of Ukraine was issued approving these ratings 
(№ 1640) [2].