Earnings abroad: who, how and at what rates should pay taxes to Ukraine
24 December 2025 15:42
The State Tax Service of Ukraine (STS) has already stated that Ukrainians abroad should take care of their taxes at home, namely, declare their income and pay the tax, which has increased significantly this year.
Which citizens have to pay the tax in Ukraine, how they can be deducted and forced to do so, and what will happen to those who do not pay it, was analyzed by
As the State Tax Service emphasizes, all income of Ukrainian citizens should be taxed, and for this purpose, every Ukrainian must declare the funds received and pay tax on them. This is especially true if you live and work abroad and receive income from foreign sources.
According to the acting head of the State Tax Service, Lesia Karnaukh, there is no need to declare funds and pay taxes in Ukraine only if an individual resident of Ukraine has received
- material assistance from foreign states, state funds or charitable organizations in connection with the war;
- assistance from foreign states, state funds or charitable organizations to family members of the first degree of kinship affected by Russian aggression.
“If other income was received abroad, such as salary, freelance income, then yes, such income must be declared in Ukraine. This can be done quite easily through the Taxpayer’s Electronic Account,” emphasized the acting head of the State Tax Service.
According to Lesia Karnaukh, any foreign income is included in the total annual taxable income and is taxed on the same basis as other income:
- personal income tax (PIT) – 18%;
- military duty – 5%.
If Ukrainians pay tax abroad, they do not need to pay it in Ukraine, it is enough to confirm this with a certificate from the tax office in the country of residence.
What income is taxed and where
If a Ukrainian officially works for a foreign company, his or her income is taxed both abroad and in Ukraine. To avoid double taxation, you need to go to the local tax authorities and get a certificate of tax payment in the host country. If you do not do this, your income will be taxed in Ukraine at the full rate, says Maria Naumenko, assistant attorney of the Dispute Resolution practice. The same applies to income from entrepreneurial activity – if your business is abroad, you need to declare your income in Ukraine.
However, dividends, interest, and royalties are taxed in Ukraine regardless of where such income is received. A separate personal income tax rate of 9% applies to dividends.
“If the source country has withheld tax on such income, you are entitled to a credit for the amount paid. This also includes income from the sale of property. Money from the sale of real estate, vehicles or other assets abroad is subject to taxation in Ukraine. When selling real estate, you should consider the taxes you paid in the country where the property is located. Rental income and the sale of copyrights are subject to taxation in Ukraine on a general basis. However, in this case, the principle of crediting taxes paid in a foreign country also applies,” says Maria Naumenko.
In other words, if you have paid taxes abroad, you no longer need to pay them in Ukraine if you have a tax certificate.
There is no hiding from the State Tax Service abroad
If a Ukrainian citizen lives abroad, for example in Poland, for more than 183 days, he or she is already considered a tax resident of Poland. The person lives there, their family is there, the center of their life interests is there, and they have to pay taxes there. If you live there for less than 183 days, you are considered a tax resident of Ukraine. If you work officially in Poland and pay taxes there, you no longer have to pay taxes in Ukraine, comments
“I will say more: if a person lives for more than 183 days in one of the European countries and, as it turns out, does not pay taxes to that country, but at the same time earns money, he or she may have questions from the local tax office. And a tax may also be charged on the money that a person has earned while physically present in the EU. Anyone engaged in remote business activities should contact tax advisors in the host country and try to avoid such unpleasant issues in advance,” emphasizes Vasyl Voskoboinyk.
And finding out whether a person has received money abroad or not is easy. In 2023, Ukraine officially joined the Common Reporting Standard (CRS), a system of automatic exchange of financial information. From that moment on, all financial data of Ukrainian citizens is automatically transferred to the tax authorities of Ukraine or another country (depending on the tax status) on an annual basis. Now all banks and financial institutions are required to identify the tax status of their clients on an annual basis using questionnaires and signs of connection with other countries (address, citizenship, payment instructions). The collected information is transferred to the tax authorities of the country where the institution is located. And from there – to the country of tax residence of the client.
And, as the expert emphasizes, if it turns out that a person received money without registering a business, he or she will be charged taxes: the basic personal income tax rate is 18% and the military fee is 5%. Even if the card is not issued by a Ukrainian bank, if it is opened with our tax number, the data will be displayed.
Not everyone will declare income
But the fact is that in Ukraine, the employer becomes a tax agent because he pays taxes for employees. This is not the case abroad, says economist Oleg Pendzin.
“There, the employer gives money to the employee, and then this person is responsible to the fiscal authorities to pay taxes for himself. But, for example, a Ukrainian may not pay tax in the country where he earned money, but pay tax in Ukraine and must do so. They have to file a tax return, indicate their income and pay 18.5% of it,” the expert says.
But if a Ukrainian citizen does not do this, it will be impossible to track him or her if the income is not transferred to the card, but they receive cash.
Author: Alla Dunina
