Ukraine

Click to download PDF: As per 1 January 2014, 2015, 2016, 2017

EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY
Tax rate Flat personal income tax rate: 18%
Tax rates for dividend income: 9%, 5% (for dividends distributed by Ukrainian corporate profit taxpayers)
Flat temporary military tax rate: 1.5%
Tax period Calendar year
Tax residency / Domicile according to domestic law Tie-breaker rules that include tests on:
a) Domicile,
b) Centre of vital interests,
c) Presence for more than 183 days in a calendar year in Ukraine,
d) Ukrainian citizenship.
Tax registration Foreign individual should obtain Ukrainian tax ID.
Employment income definition Any remuneration and benefits in cash or in kind.
Examples of tax exemption Reimbursement of properly documented business expenses (including business trip expenses, per diems, etc.) is not taxable.

State financial aid

Specific expatriate concession Not applicable.
Income of board members Treated as employment income.
Tax returns Local employment agreement: the employer is responsible for the monthly tax compliance.
Foreign employment agreement: individual is responsible to submit annual tax return by 1st of May of the following year.
Tax payments In case of local employment agreement  the employer is responsible for withholding of the personal income tax and military tax, and its payment to the state.
Foreign employment agreement: individual is responsible for paying personal income tax and military tax based on the annual tax return by 1st of August of the following year
TAX TREATIES
Employment income / income from board members Art 15/16 Model OECD Tax Convention

Ukraine signed double tax treaties with more than 70 countries.

INTERNATIONAL SOCIAL SECURITY
Cross border employments Ukrainian companies and representative offices of foreign companies pay social security contribution in respect of their Ukrainian and foreign employees.
Exception under Art 16 of Reg. 883/2004
and Art 17 of Reg. 1408/71
Not  applicable.
Social Security Cost as % from gross salary and absolute amounts Flat rate: 22% for employers, self-employed individuals and private entrepreneurs.
Employees are not liable to pay social security contribution.
Monthly tax base is capped at the value of UAH 40 000 (app. EUR 1 350).
IMMIGRATION
Work permit Foreign nationals (except for those having the permanent residence certificate) require work permit for working in Ukraine.
Work permit may be granted for maximum 1 year and may be extended after its expiry for the same period.
As well, to be employed in Ukraine the foreign nationals should obtain Ukrainian tax ID.
Visa EU and US nationals (as well as nationals of other countries having a visa-free regime with Ukraine) do not require visa to enter Ukraine, unless they intend to stay for more than 90 days within 180-days period.
Nationals of other countries require visa to enter Ukraine. Visas are granted by Ukrainian consulates in respective countries.
Residency permits / registration certificate Foreign nationals require temporary residence certificate if they intend to stay in Ukraine for more than 90 days within 180-days period. To receive it foreign national needs to have a registered address in Ukraine.
Driving license Driving licenses issued in foreign countries are valid in Ukraine.
Foreign nationals may obtain Ukrainian driving license.
STOCK OPTION PLAN There are no special provisions regarding the taxation of the Stock Option Plans in Ukraine. The tax treatment depends upon the conditions of the Stock Option Plan.
Grégoire Dattée
Managing partner – Kiev, Ukraine
Send Email
Direct line: +38 044 390 71 07
Address: Business Center Illynsky 8, Illynska street, entry № 1, 6th floor, 04070 Kiev
www.mazars.ua

 

Yuriy Netskyy
Tax Manager – Kiev, Ukraine
Send Email
Direct line: +38 044 390 71 07
Address: Business Center Illynsky 8, Illynska street, entry № 1, 6th floor, 04070 Kiev
www.mazars.ua

 

Keteryna Mazars Ukraine Keteryna Mytsykova
Attorney – Kiev, Ukraine
Send Email
Direct line: +38 044 390 71 07
Address: Business Center Illynsky 8, Illynska street, entry № 1, 6th floor, 04070 Kiev
www.mazars.ua