Taxation

Foreign citizens can start their business enterprises in Ukraine as well. They will have the same legal authority and privileges as Ukrainians. An expatriate can create a Ukrainian legal entity to start their own business or operate through a Ukraine representative office. But, just like in any nation, there is the issue of taxes one has to be aware of and plan accordingly. So, here is an easy-to-understand global tax guide focused on doing business in Ukraine.

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