The State Tax Service in Poltava region has provided clarifications on the rules for taxation of income of Ukrainians abroad. In the context of mass labor migration and temporary stay of millions of Ukrainians abroad, this information is critically important for understanding one's obligations to the Ukrainian tax system.
What taxes are paid in Ukraine on foreign income?
Any income received by a Ukrainian abroad is subject to taxation in Ukraine at the following rates:
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18% — personal income tax (PIT);
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1.5% — military levy (until January 1, 2025).
In case of income received in foreign currency, its amount is converted into hryvnia at the official exchange rate of the NBU on the day of accrual.
How to avoid double taxation
If a Ukrainian has paid taxes abroad, repeated payment in Ukraine is not required - provided that the country where the income was received has an agreement with Ukraine to avoid double taxation.
To exercise this right, you must:
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Obtain an official certificate from a foreign tax office about tax payment;
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Legalize the document in the authorities of the country where the tax was paid (for example, at the consulate).
Important: in Ukraine, only that part of the tax is credited that does not exceed the amount payable under Ukrainian legislation. That is:
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if more was paid abroad than was required in Ukraine, there is no need to pay anything extra;
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if less, you will have to pay the difference.
What to do if there are no tax payment documents
In this case, you must contact the Ukrainian tax office at your place of registration with an application to postpone the deadline for submitting the declaration - it can be submitted until December 31 of the relevant year.
Taxes and charitable assistance
Ukrainians who are abroad due to the war are not required to declare and pay taxes if they receive:
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monetary or humanitarian aid from foreign governments or charities.
But if you have other income (salary, freelance income, rent, etc.), you need to file a declaration - even if you are receiving assistance at the same time.
How to file a tax return from abroad
There are two options:
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by mail - with a description of the attachment, sent no later than 5 days before the submission deadline;
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electronically - through the electronic document management system of Ukraine.
