Icon
Come back

2 min

18 Sep. 2024

23204

Double taxation for Ukrainians: how does it work, who is obliged to pay taxes twice and how to file a declaration?

Finance
Popular
Für Flüchtlinge
Documents
Double taxation for Ukrainians: how does it work, who is obliged to pay taxes twice and how to file a declaration?

According to the Tax Code, Ukrainians who are abroad and have income but have permanent residence in Ukraine are residents of Ukraine. This means that they must file a tax return. We will explain in detail how to do this, who is obliged to pay taxes twice and what fee will have to be paid in any case

Legal assistance for Ukrainians in Ukraine and abroad
Legal assistance for Ukrainians in Ukraine and abroad
GET


Ukrainians who receive income and stay abroad, but are registered (permanently residing) in Ukraine, are considered residents of Ukraine. And according to the Tax Code of Ukraine, the income of such persons in Ukraine and abroad should be taxed in accordance with the current legislation. We will explain how it works and how to file a tax return below.



According to the current legislation, if an individual stays abroad for a long time, but has a place of permanent residence in Ukraine, has close personal or economic ties (center of vital interests) in Ukraine and is a citizen of Ukraine, such a person will be considered by the tax authority as a resident of Ukraine. And any income received by individuals who are residents of Ukraine should be taxed in accordance with the rules of the Tax Code.


Thus, individuals - residents of Ukraine who received foreign income must submit a tax return on property and income to the tax authority at their place of registration


How to file an income and property tax return?


The taxpayer is obliged to indicate his or her income (including dividends), specifying not only their amount and the amount of tax, but also the name of the country from which the foreign income was received and the currency in which such income was accrued.


The amount of income in the tax return must be indicated in hryvnias and kopecks. Thus, income received in foreign currency should be translated into hryvnias at the NBU exchange rate in effect at the time of receipt of such income.


The declaration shall be submitted to the controlling authority in one of the following ways at the taxpayer's option

– personally by the taxpayer or an authorized person;

–by mail with acknowledgment of receipt and a list of attachments;

–in electronic form through a personal electronic account on the website of the tax service (you must have an electronic key).




Visit Ukraine on social media: Telegram | YouTube | Instagram | Facebook | Twitter | TikTok




What if you have already paid taxes abroad?


Declaration of income and crediting of taxes paid abroad is also carried out by filing a declaration of property and income. To confirm the right to credit taxes and duties paid outside Ukraine, resident individuals need to obtain a certificate from a government agency of the country, which indicates the amount of tax and duty paid and the object of taxation.


After that, this certificate must be legalized at a foreign diplomatic mission of Ukraine in that country, unless there are exceptions in the legislation (for example, if Ukraine has entered into a legal assistance agreement with that country, on the basis of which no additional certification of documents is required). 


You can check which countries have concluded international double taxation treaties on the website of the Ministry of Finance of Ukraine at this link.


However, if there is no double taxation treaty with the country where an individual lives and works, then taxes are paid in Ukraine repeatedly, namely, personal income tax at the rate of 18% and military duty at the rate of 1.5%.


Additional opportunities: how to reimburse part of the taxes paid?


After declaring their income, Ukrainians have the opportunity not only to avoid double taxation, but also to reimburse overpaid taxes and receive additional social benefits, such as child benefits. This opportunity is available to all citizens who officially work and pay taxes in Europe. The overpayment itself occurs because employers in 9 out of 10 cases transfer a fixed amount to the tax authorities that exceeds the actual amount of taxes that the employee should have paid. It is this difference in overpaid taxes that can be refunded after filing a tax return.

Tax experts can help you calculate the possible refund amount and directly receive your overpaid funds. One of the most well-known companies in this area is RT Tax, which has already helped more than 250,000 employees from all over the world to get their taxes back. Keep in mind that the company offers services without upfront payments - you pay a percentage of the service fee only if you successfully get your tax refund. So, keep in touch and get your legitimate money back with RT Tax experts.


Do Ukrainians abroad have to pay military duty?


According to the explanations of the tax authorities, taxes paid abroad are not taken into account for the calculation and payment of the military fee. Accordingly, the amount of foreign income is subject to military duty in Ukraine at the rate of 1.5%, regardless of the amount of taxes paid abroad.


If you need further clarification on double taxation or tax payment, please contact Visit Ukraine's lawyers for advice. Our specialists will answer your questions and help you solve your immediate problems. You can order a legal consultation by following this link.


We remind you! The Ukrainian authorities have fixed a plan to increase taxes for individual entrepreneurs and set a new level of subsistence minimum and wages, which accordingly affected the amount of taxes for individual entrepreneurs of groups I-III. Read how much individuals now have to pay and what other changes to expect in the near future in our previous article.


Photo: brizmaker, Getty Images/iStockphoto


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.






Ihor Usyk is the Head of Legal Department at Visit Ukraine


In order to organize a trip, ensure a safe move and successful employment in a new country, I advise you to contact a specialist. My colleagues, qualified specialists with legal education, will help you avoid unpleasant situations when traveling abroad.


Do you have additional questions? Contact the Visit Ukraine hotline (Telegram | WhatsApp).




Our recommendation for a safe and comfortable trip: 


Visit Ukraine Insurance - insurance for a safe stay abroad without unnecessary expenses;

Green Card - compulsory car insurance for traveling abroad;

Visit Ukraine Tickets - book tickets for buses, trains, and airplanes to/from Ukraine and between cities around the world;

Private Lawyer service - professional legal support on visa and migration issues;

Visit Ukraine Merch - buy patriotic clothing and accessories with worldwide delivery.




© 2018-2024, Visit Ukraine. Use, copying or reprinting of materials on this site is permitted only with a link (hyperlink for online publications) to Visit Ukraine.

All rights reserved.

Häufig

gestellte Fragen

Wann können Ukrainer eine Steuerrückerstattung erhalten?

Um herauszufinden, ob Sie Anspruch auf eine Steuerrückerstattung haben, müssen Sie in dem Land, in dem Sie gearbeitet haben, eine Steuererklärung einreichen. So können Sie Ihr gesamtes Einkommen angeben und feststellen, ob Sie zu viel gezahlt haben. Es ist wichtig zu wissen, dass Sie auch dann eine Steuererklärung einreichen und eine Rückerstattung beantragen können, wenn Sie bereits in die Ukraine zurückgekehrt sind.

Wie viel Steuern können erstattet werden?

Müssen im Ausland lebende Ukrainer in der Ukraine eine Steuererklärung abgeben?

Wie wird ausländisches Einkommen in der Ukraine besteuert?

Recommended articles

2 min

Insurance Health care in Europe: why medical insurance is necessary in any case

Health care in Europe: why medical insurance is necessary in any case

Medicine in Europe is notoriously not a cheap service at all. That's why insurance is so popular in the EU, giving citizens access to medical care when they need it. Find out what the benefits of health insurance are and why it is the easiest way to protect your health

10 Apr. 2024

More details

2 min

Für Flüchtlinge Even with work: how many Ukrainians face financial difficulties in the Czech Republic?

Even with work: how many Ukrainians face financial difficulties in the Czech Republic?

About a third of Ukrainians in the Czech Republic have managed to find a job, but some of them are still struggling financially. Find out who is more likely to face these problems

09 Apr. 2024

More details

2 min

Krieg The VRU Committee has completed its work on the draft law on mobilization: what the updated version looks like

The VRU Committee has completed its work on the draft law on mobilization: what the updated version looks like

After many months of consideration of one of the main laws of Ukraine, the relevant Verkhovna Rada Committee has finally completed its work and will submit an updated draft law to the Verkhovna Rada. Find out what changes to the law on mobilization are already known and what processes will take place before its adoption

10 Apr. 2024

More details

1 min

Transport France to launch travel cards for 49 euros: who can use them

France to launch travel cards for 49 euros: who can use them

This summer, 49 euro travel cards will be introduced in France. This new travel card will be available to a wide range of passengers. It is planned that this ticket will allow traveling without restrictions within the country, providing access to different cities and regions. Find out more about who will be able to use the budget ticket

10 Apr. 2024

More details