Taxation of income abroad: what should Ukrainians know?

If you are citizen of Ukraine and receive income outside the country, it is important to remember your tax obligations. You need to submit income declaration and pay taxes. 

What taxes must be paid?

Any income earned abroad is subject to taxation in Ukraine. It is taxed at the following rates:

- 18 % – personal income tax;

- 1.5 % – military levy (but only for income received before January 1, 2025).

If income was received in a foreign currency, amount is converted into UAH at the official exchange rate of the National Bank of Ukraine on the day income was accrued.

How to avoid double taxation?

If you have already paid taxes abroad, you will not have to pay income tax again in Ukraine. However, it is important that this country has a double taxation agreement with Ukraine.

What the one needs to do?

- Get a certificate from the foreign taxing country about the paid taxes.

- Legalize it in the country where taxes were paid (for example, through a consulate or authorities authorized to legalize such documents). 

- Important! Amount of tax paid outside Ukraine is credited in the amount that does not exceed the amount of tax that would have to be paid in Ukraine.

That is:

- if the one paid tax abroad in the amount of 100 thousand UAH, and in Ukraine you are required to pay 80 thousand UAH, then tax in Ukraine is not paid;   

- if the one paid 80 thousand UAH abroad and 100 thousand UAH of tax is payable in Ukraine, then you will only need to pay the difference – 20 thousand.

What to do if the one doesn't have tax payment documents?

- You must submit application to the Ukrainian Tax Service at your registration place and postpone deadline for submitting declaration until December 31.

Declaration of charitable assistance

If you received temporary protection abroad due to the russian aggression, then:

- it is not needed to submit declaration and pay taxes if you received monetary or humanitarian assistance from the foreign governments or charitable foundations.

- it is needed to submit tax declaration if you had other income (for example, salary or freelance income), even if you received charitable assistance.

How to submit tax declaration while abroad?

- by mail – send documents with a description of the attachment not later than 5 days before the submission deadline.

- by email – through the electronic document management system of Ukraine.

Find out more about the declaration submission process and important deadlines at the links below:

Read how to submit a declaration at the link: https://tax.gov.ua/en/mass-media/news/866523.html

About deadlines for the declaration submitting: https://tax.gov.ua/en/mass-media/news/865638.html

How to get tax discount: https://tax.gov.ua/en/mass-media/news/870408.html