On May 12, the press service of the State Tax Service of Ukraine published a reminder on the taxation of income of resident individuals received from sources outside Ukraine.
Source:https://tax.gov.ua/media-tsentr/novini/676493.html
What should you pay attention to?
Individuals with permanent residence on the territory of Ukraine have the right to carry out foreign economic activity if they are registered as entrepreneurs. The principles of currency regulation provide for the right of resident individuals and legal entities to conclude agreements with residents and (or) non-residents and fulfill obligations associated with these agreements in national currency or foreign currency, including opening accounts in financial institutions of other countries. Residents, subject to the restrictions determined by Law No. 2473 and other laws of Ukraine, have the right to open accounts with foreign financial institutions and carry out currency transactions through such accounts.
Settlements on foreign economic transactions are made exclusively through bank accounts, funds from a non-resident on the operations of a resident on the export of goods are subject to crediting to a resident’s account in Ukraine in a bank.
Current legislation does not prohibit resident individuals from opening accounts with financial institutions of other countries. At the same time, funds from the operations of resident business entities, in particular for the export of goods (services), are subject to crediting to residents’ accounts in Ukrainian banks.
How about income?
Income denominated in foreign currency is transferred in hryvnias at the official hryvnia to foreign currency exchange rate set by the NBU on the date such income is received. For an individual entrepreneur, all valuable indicators that are included in income are reflected in the national currency of Ukraine. Indicators expressed in foreign currency are transferred in national currency at the official hryvnia exchange rate to foreign currencies, established by the NBU on the date of their receipt.
Important
Funds received under foreign economic contracts are credited to an account opened in the WISE system, and not to a foreign currency account for doing business with a bank of Ukraine, such funds are not included in the income of an individual entrepreneur – single tax payer, but are taxed according to the rules established for taxpayers – individuals.
Income received by a resident individual from sources outside of Ukraine is included in the total annual taxable income as foreign income and is subject to personal income tax and military duty on a general basis.
The issue of classifying transfers using WISE/REVOLUT/PAYONEER services as cash settlements is within the authority of the National Bank of Ukraine.