According to results of the current declaration campaign as of the 1st of November 2020, citizens of Dnipropetrovsk region submitted 215 property and income tax declarations for 2019, in which received foreign income was declared in the amount of 765.1 million UAH, which is 622 million UAH more than in 2019.
From citizen’s foreign income declaration, the budget received 76.4 million UAH of the personal income tax (hereinafter – the PIT), which is 50.9 million UAH more than in 2019 and 11.5 million UAH of the military levy, which is 9.5 million UAH more than in 2019.
Reminder! Property and income tax declaration (hereinafter – the declaration) must be obligatory submitted receiving income from foreign sources, as individuals – residents of Ukraine, who receive income from both their source in Ukraine and foreign income, are the personal income tax payers.
According to Sub-paragraph 14.1.55 Paragraph 14.1 Article 14 of the Tax Code of Ukraine (hereinafter – the TCU) – income received from sources outside Ukraine is any income received by residents, including from any of their activities outside the customs territory of Ukraine: interest, dividends, royalties and any other types of passive income, inheritance, gifts, winnings, prizes, income from work (provision of services) under civil law and employment contracts, from the provision to residents for rent (use) of property located outside Ukraine, income from the sale of property located outside Ukraine, income from the alienation of investment assets, including corporate rights, valuable papers, etc., other income from any activities outside the customs territory of Ukraine.
Herewith, if the source of payment of any taxable income is foreign, the amount of such income is included in the total annual taxable income of the PIT payer – recipient, who is required to submit annual declaration. Such income is subject to the personal income tax at the rate specified in Paragraph 167.1 Article 167 of the TCU and is subject to the military levy.
At the same time, the PIT payer may reduce amount of annual personal income tax liability by the amount of taxes paid abroad according to the norms of international agreements, the binding nature of which has been approved by the Verkhovna Rada of Ukraine.