How to tax income abroad: what should Ukrainians know?
Kyiv • UNN
Ukrainians working abroad must declare their income and pay taxes in Ukraine. The personal income tax rate is 18%, and the military levy is 1.5%, but double taxation can be avoided if there is a relevant agreement.
Ukrainians working abroad are obliged to declare their income and pay taxes in Ukraine. Regardless of where exactly you earn your income, it is important to know how to properly fulfill your tax obligations and avoid double taxation. This was reported by the State Tax Service of Ukraine, writes UNN.
Details
If you are a citizen of Ukraine and receive income outside the country, it is important to remember your tax obligations. You need to submit an income declaration and pay taxes
What taxes need to 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 NBU exchange rate on the day the income was accrued
How to avoid double taxation
As reported, if you have already paid taxes abroad, you will not have to pay income tax again in Ukraine. But it is important that this country has an agreement with Ukraine on avoiding double taxation.
What needs to be done
Obtain a certificate from the tax authority of the foreign country about the taxes paid. Legalize it in the country where the taxes were paid (for example, through a consulate or authorities authorized to legalize such documents).
In addition, it is important that the amount of tax paid outside Ukraine is credited in an amount not exceeding the amount of tax that would have to be paid in Ukraine.
Accordingly, if you paid UAH 100,000 in tax abroad, and UAH 80,000 is determined to be paid in Ukraine, then no tax is paid in Ukraine. If you paid UAH 80,000 abroad, and UAH 100,000 is subject to payment in Ukraine, then you will only need to pay the difference - UAH 20,000.
What to do if there are no tax payment documents
You must submit an application to the Ukrainian tax office at your place of registration and postpone the deadline for submitting the declaration until December 31. Declaring charitable assistance to citizens who have received temporary protection abroad due to Russian aggression does not require submitting a declaration and paying taxes if you received monetary or humanitarian assistance from foreign governments or charitable foundations.
A declaration must be submitted if you had other income (for example, salary or freelance income), even if you received charitable assistance.
How to submit a declaration while abroad
Citizens can submit a declaration in the following ways:
- By mail - documents are sent no later than 5 days before the final submission deadline;
- By email - through the electronic document management system of Ukraine.