If you are a citizen of Ukraine and receive income outside the country, it is important to remember your tax obligations. You need to file a declaration of income and pay taxes. This is reported by “Law and Business” with reference to the State Tax Service.
What taxes must be paid?
Any income received abroad is subject to taxation in Ukraine. It is taxed at the following rates:
– 18% – personal income tax (PIT);
– 1.5% – military levy (but only for income received before January 1, 2025).
If the income was received in foreign currency, the amount is converted into hryvnia at the official exchange rate of the National Bank of Ukraine on the day the income was accrued.
How to avoid double taxation?
If you have already paid taxes abroad, then in Ukraine you will not have to pay income tax again. But it is important that this country has an agreement with Ukraine on the avoidance of double taxation.
What needs to be done?
– Obtain a certificate from the foreign taxing country about the taxes paid.
– Legalize it in the country in which the taxes were paid (for example, through the consulate or authorities whose powers include the legalization of such documents).
– The amount of tax paid outside Ukraine is credited in an amount that does not exceed the amount of tax that would have to be paid in Ukraine.
That is:
– if you paid a tax of 100 thousand UAH abroad, and in Ukraine you are determined to pay 80 thousand UAH, then the tax in Ukraine is not paid;
– if you paid 80 thousand UAH abroad, and in Ukraine 100 thousand UAH of tax is payable, then you will only need to pay the difference – 20 thousand.
What to do if you do not have tax documents?
You must file an application with the Ukrainian tax office at your place of registration and postpone the deadline for filing the declaration until December 31.
Declaring charitable assistance
If you received temporary protection abroad due to Russian aggression, then:
– you do not need to file a declaration and pay taxes if you received monetary or humanitarian assistance from foreign governments or charitable foundations.
– you need to file a declaration if you had other income (for example, salary or profit from freelance work), even if you received charitable assistance.
How to file a declaration while abroad?
– by mail – send documents describing the investment no later than 5 days before the deadline for filing.
– by email – through the electronic document management system of Ukraine.
