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 duty is 1.5%, but double taxation can be avoided if a treaty is in place.
Ukrainians working abroad are required to declare their income and pay taxes in Ukraine. Regardless of where you earn your income, it is important to know how to fulfill your tax obligations and avoid double taxation.
This was reported by the State Tax Service of Ukraine, UNN reports.
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If you are a citizen of Ukraine and earn income outside the country, it is important to be aware of your tax obligations. You need to file an income tax return and pay taxes
What taxes do I have to pay?
Any income earned abroad is subject to taxation in Ukraine. It is taxed at the following rates:
- 18% - personal income tax (PIT);
- 1.5% - military duty (but only for income received before January 1, 2025).
If the income was received in a foreign currency, the amount is translated into hryvnia at the official NBU exchange rate on the day the income is accrued
How to avoid double taxation?
Reportedly, if you have already paid taxes abroad, you will not have to pay income tax in Ukraine again. But it is important that this country has a double taxation agreement with Ukraine .
What needs to be done?
Obtain a certificate from the tax authorities of a foreign country on taxes paid. Legalize it in the country in which 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 been paid in Ukraine.
Accordingly, if you have paid UAH 100 thousand of tax abroad, and in Ukraine you are required to pay UAH 80 thousand, you do not pay tax in Ukraine; If you have paid UAH 80 thousand abroad, and in Ukraine you are required to pay UAH 100 thousand of tax, you will only have to pay the difference - UAH 20 thousand
What should I do if I don't have any tax payment documents?
You must submit an application to the Ukrainian tax office at the place of registration and postpone the deadline for filing the declaration until December 31. Declaration of charitable assistance Citizens who have received temporary protection abroad due to Russian aggression do not need to file a declaration and pay taxes if you have received monetary or humanitarian assistance from foreign governments or charitable foundations.
You need to file a declaration if you had other income (e.g., salary or freelance income), even if you received charitable assistance.
How to file a tax return while abroad?
Citizens can file a declaration in the following ways: By mail - documents must be sent no later than 5 days before the deadline. By e-mail - through the electronic document management system of Ukraine.
