Ukrainians working abroad must declare their income

Published 8 February 2017. Some rules have changed since; ask us for the current position.

The Main Office of the State Fiscal Service (ДФС) in Odesa Region has reminded Ukrainian citizens who work abroad, temporarily or permanently, that they must pay tax on their income: 18% personal income tax and 1.5% military levy.

Here is how the tax is paid in more detail.

The taxpayer, in this case a Ukrainian citizen working abroad, must file an annual tax return for 2016. Income received in foreign currency (most likely US dollars) is converted into hryvnias at the National Bank of Ukraine (NBU) exchange rate in effect when the income was accrued (received).

How do you pay the tax?

If you work abroad, you need to obtain a certificate from the government authority of the country where you earn this income. The resident, that is, the Ukrainian citizen working abroad, then submits this certificate to a Ukrainian diplomatic mission abroad, in other words to the Embassy of Ukraine, unless the international treaties of Ukraine in force provide otherwise.

The following taxes paid in other countries cannot be credited against the taxpayer's tax liability:

1. taxes on capital (capital gains) and property taxes;
2. postal taxes;
3. taxes on sales;
4. other indirect taxes, whether they fall into the category of income taxes or are treated as separate taxes under the laws of foreign countries.