Working from home or remotely is not a way to hide from official registration

Regardless of whether employee works from home, remotely or on-site, the employer is required to submit reports to the tax authorities and comply with taxation requirements.

In conditions of the martial law in Ukraine, more and more employees are switching to working from home or remotely. However, it is important to remember that any form of employment relationship must be declared – according to the Labor Code of Ukraine and tax legislation.

- Homework is activity performed by employee at his/her residence place or in other locations agreed upon with the employer, using technical means necessary for provision of services or manufacture of products. It is regulated by Article 60-1 of the Labor Code of Ukraine.

- Remote work is work outside the employer’s territory, using information and communication technologies. It is regulated by Article 60-2 of the Labor Code of Ukraine.

Official employment is responsibility of both the employer and employee.

All employment contracts – regardless of the form of labor organization – must be properly declared, and wages must be official, with appropriate payment of:

- personal income tax;

- single contribution to obligatory state social insurance;

- military levy.

Violations are the risks of:

Practice of signing contracts “on a whim” or working without a contract creates risks for both the employee (lack of guarantees) and employer (fines and audits). According to the Tax Code of Ukraine, tax evasion can entail administrative and criminal liability.

Employers and employees are urged to comply with the law.

Formalization is not only about security and rights, but also about tax transparency, social security stability and supporting the country’s economy during the wartime.