Results of the non-residents’ declaration of income with source of their origin from Ukraine for the first quarter of 2021

According to declaration results in the first quarter of 2021, the volume of non-residents’ income with source of their origin from Ukraine amounted to 50.0 billion UAH, of which 1.6 billion UAH of tax was accrued.

Significant payouts are made to companies registered in the Republic of Cyprus, the Kingdom of Netherlands, the United Kingdom and Germany.

Analyzing activities of economic entities there is 20% of payouts that are risky. The main risks are payouts to non-residents who are not beneficial (actual) owners of income and to unregistered non-residents’ permanent establishments in Ukraine. There is also an abuse of the conventions provisions to obtain tax benefits.

One of the tools for collecting evidence of violations in payouts to non-residents is the exchange of tax information with the competent authorities of foreign countries. Today, effective communication with foreign countries has been established, so the deadlines for receiving responses have been significantly reduced, which allows to quickly process the tax evasion risks.   

Communicate with the State Tax Service remotely using the “InfoTAX” service