If you would like to establish a business or live in Ukraine as an expat, you should have a general comprehension of the country's tax system. Ukraine is one of the EU countries with easy-to-understand tax regiments. This article will provide information that helps you to manage your taxes properly. Proper tax administration helps to minimize unnecessary penalties, which can weigh heavily on your finances.
The Ukrainian Withholding tax (WHT) is an income tax that is paid by the employer (the source), rather than the employee (the recipient), to the government. The term withholding tax is also known as pay-as-you-earn (PAYE) or pay-as-you-go. Every country has its percentage of retention tax.
For a foreigner to invest in Ukraine, they must open an investment account with one of the local banks. An investment account is the only one of its kind, allowing foreigners to make settlements for their investments in Ukraine
Posvidka na prozhyvannya is the name given to a residence permit in Ukraine. As a foreigner, while seeking permanent residence in Ukraine, you must aim at obtaining this document. Getting a Ukrainian residence permit is mandatory by law to all foreigners seeking more than 90 days in Ukraine.
Ukraine has signed numerous Double Taxation Treaties (DTT) with countries in Europe and all over the World. This promotes good business and contributes to the overall growth of the economy. This text will discuss some of the articles incorporated under the Ukrainian double taxation agreements.
What is a Double Taxation Treaty
One of the factors that have contributed to the growth of the Ukrainian economy is the presence of effective tax regulations. The country has put in place comprehensive tax schemes for both individuals and corporate entities (for both locals and foreigners). To learn more about taxation on the individual level, please continue reading.
Residents vs Non-residents