Besonderheiten der Einkommensteuer: Wann müssen Ausländer in der Ukraine Steuern zahlen?

Das ukrainische Recht verbietet Ausländern nicht, in der Ukraine beschäftigt zu sein und Geschäfte zu machen, aber Einkommen, das im Land erzielt wird, unterliegt der obligatorischen Besteuerung. Erfahren Sie, in welchen Fällen Ausländer Steuern zahlen müssen und wie das System der Doppelbesteuerung und die E-Residency in der Ukraine funktioniert.

Rechtliche Unterstützung bei der Gründung und Führung eines Unternehmens in der Ukraine

HOLEN

Under Ukrainian tax law, foreigners who are legally resident in Ukraine have the same rights and obligations as Ukrainian citizens. Therefore, if such a non-resident person receives income from the territory of Ukraine, he or she is obliged to pay tax on such income. The object of taxation is the income received from the territory of Ukraine.

Who is a tax resident?

Tax residency is a status that implies the obligation to pay taxes on all income in this country.

Tax residence status can be obtained by determining:

– the location of the person,

– place of permanent residence,

– registration as a business entity,

– place of residence on the territory of Ukraine by a person independently,

– registration as a self-employed person,

– the fact of staying in Ukraine for at least 183 days during the tax year,

– the presence of a center of vital interests (personal or economic ties that may affect the recognition of the status of a resident of the country).

To confirm the tax residency status, a person may be issued a certificate by the Tax Service. 

What taxes does a foreigner have to pay in Ukraine?

The specifics of taxation depend on the source of income. That is, like Ukrainians, employed foreign nationals will pay some taxes, and foreigners engaged in entrepreneurial activities in Ukraine will pay other taxes.

Currently, the rate of the main tax paid on salaries and other income, namely personal income tax (PIT), is 18%. In addition to PIT, income is subject to a 1.5% military tax.

The amount of LLC taxes depends on the taxation system, as follows:

1. under the general taxation system, it is paid:

– Income tax - 18%.

– VAT - 20%.

2. under the simplified taxation system, the taxpayer pays: 

– Single tax on income - 3%.

– VAT - 20%.

Instead, sole proprietors pay taxes at the rate determined by law depending on the group.

To pay taxes, a foreigner needs to obtain a taxpayer registration number. We have described how to do this in detail in this article.

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How to avoid double taxation?

Ukraine has concluded many international treaties for the avoidance of double taxation. This includes more than 72 countries. According to international treaties for the avoidance of double taxation, a non-resident person is a resident of a contracting country and may be entitled to benefits or exempt from income taxation. 

In this case, a certificate of tax avoidance is issued by the competent (authorized) body of the relevant country recognized by an international treaty of Ukraine, in the form approved by the relevant country, legalized and translated into the state language in accordance with the legislation of Ukraine. 

The issue of double taxation is particularly relevant for sole proprietorships with Ukrainian registration, as income from the activities of a foreign sole proprietorship may also be taxed in Ukraine. Therefore, it is worth checking in advance whether there are any applicable international treaties for the avoidance of double taxation with other countries. 

What taxes do foreigners with e-residency in Ukraine have to pay?

Starting from April 2023, foreigners can become e-residents in Ukraine and start their own business in Ukraine without having to physically move. 

To do this, they need to register with Diia and, if they pass the financial and security checks, they become an e-resident, i.e., an electronic single tax payer of the 3rd group without VAT and receive an electronic digital signature, open a bank account remotely, work and pay tax - 5% of income within the limit of entrepreneurs in the 3rd group of the single tax (over the limit - 15%). Read more about how to apply for e-residency in Ukraine in this article.

If you need legal advice on employment or business activities, as well as on the peculiarities of taxation of foreigners in Ukraine, please contact Visit Ukraine lawyers. Our specialists will answer all your questions, help you solve your immediate problems, and collect, submit and receive the necessary documents. To order a legal consultation or full legal support, please follow this link.

For any additional questions, please contact the Visit Ukraine hotline (Telegram | WhatsApp).

We remind you! From now on, individual entrepreneurs can submit their reports in the tax application. Read more about how to use the tax application and effectively manage your finances in our previous article.