What taxes are paid by a non-resident of Ukraine

What are the taxes for foreigners in Ukraine?

When considering this issue, first, it is worth paying attention to the constitution of our country. The main law says that all people are equal, citizen, foreigner and stateless person. This means that a non-resident has the same rights and freedoms as everyone else. And this, in turn, implies that such a person bears responsibility on an equal footing with everyone. That is, the taxation of foreigners is not subject to benefits and special preferences.

If a citizen of another country plans to engage in private business in Ukraine, it is enough for him to obtain an identification code at the nearest State Tax Inspectorate. After that, you can prepare documents for registration of an enterprise, carry out the necessary actions through a notary office or in the center for the provision of administrative services.

If a non-resident wants to get a job or become a director at the company where he is the founder, he will have to additionally obtain a work permit at the employment center. That will pull the additional payment of a single social contribution.

Are there pitfalls in taxing foreign citizens?

This issue implies the introduction of foreign investments into the Ukrainian economy and, as a rule, the subsequent withdrawal of the profit received. As you know, in order to get money from abroad, an individual must carry out this action through a national bank, where he will be exchanged US dollars for hryvnia, at the NBU rate, and then he can independently exchange the money back in any bank, but already by less favorable rate. Thus, the investor loses on the exchange rate difference.

It is also necessary to remember that in order to invest more than one hundred thousand dollars in our country, it is necessary to obtain permission from the NBU to enter such a sum. This decision is made by the management of the national bank based on a preliminary analysis of financial monitoring, which can be carried out from several days to several months. In cases of refusal, the investor is not obliged to explain for what reasons the ban is imposed on the movement of his money. Even if a person has white and transparent income, according to the law, everything is fine, he may still be refused to invest large sums.

Nuances of taxation of non-resident individuals in Ukraine?

It has already been mentioned in this article that foreign citizens are the same payers of state fees as Ukrainians and stateless persons. You only need to obtain an identification code and a work permit. This is done not difficult and rather quickly, but to fill out a package of documents you need a good knowledge of the Ukrainian language, so it is better to entrust this issue to an experienced lawyer.

The personal income tax rate for non-residents according to the Tax Code is the same as for residents. There are no benefits and preferences, even if a person has a temporary or permanent residence permit. The only difference is that if you have a permanent residence permit, there is no need to receive a paper giving the right to earn money in Ukraine.

Also, a foreigner pays a military fee (as long as it exists), a unified social contribution, and other mandatory fees adopted by parliament.

Non-resident status in the tax code of Ukraine?

There is no article in the Tax Code of Ukraine that provides for a separate approach to foreign citizens, as in any other country of the European Union and the civilized world in general. A separate approach exists only in the legislation of states that are officially global offshore zones. Perhaps there are preferences for wealthy foreigners in the countries of the so-called third world with a dictatorial form of government. But it is not worth contacting such a jurisdiction on your own, it may end up in the loss of money. Firstly, they can be taken away from you by the sole decision of the dictator, and you will not be able to sue, since the judicial system in such territories is simply absent. Secondly, when transferring investments to the European Union, America or even Ukraine, a person may face the fact that his money will receive the stigma of illegally acquired when checking financial monitoring. This can result in the imposition of sanctions and the complete seizure of assets, which is not very good for doing business. This is the problem faced by our so-called oligarchs, now they cannot work in any country in the world.

How to get around the tax for non-residents?

Once again, let us remember that we live in a European state and the legislation of Ukraine is rapidly being brought into line with the rules of developed territories. This is a positive legacy from the 2014 dignity revolution. Previously, we could negotiate with an official and get around taxes. Today it is practically impossible!

But there are some tips on how to legally reduce budget contributions:

• Register a company, become a founder and 100% beneficiary;
• Obtain a permanent residence permit, appoint yourself as a director;
• Open two current accounts in the bank, one in hryvnia, the other in dollars or Euro, start investments as authorized capital;
• Try to export the created products in order to receive VAT refunds;
• If you withdraw capital abroad, then do it in small sums, less than one hundred thousand Euros.

Important! If you plan to work as a non-resident in Ukraine and want to properly arrange investments, please contact only those law firms that are ready to resolve your issues on a turnkey basis. Otherwise, you will waste a lot of time and, accordingly, money.