Interlegal consulted the client upon seafarers’ salary taxation

The client applied to Interlegal for legal advice upon salary taxation for seafarers – citizens of Ukraine receiving salaries from the foreign shipowner.

The issue of seafarers’ taxation is quite vital, due to specifications of working abroad, long-term absence in the residence country and hire by foreign employers.

In the framework of consulting, Interlegal lawyers analyzed the issues of seafarers’ salary taxation under both their residence (i.e. in Ukraine) and under their employment site (i.e. in the shipowner’s registration state), studied natural person income tax rates in each certain country, procedure and terms for declaration on received income and tax payments, and liability for breach of tax legislation.

Interlegal lawyers analyzed also the Double Taxation Convention between the Government of Ukraine and the Government of shipowner’s registration state, specifications of its application in this certain case, as well as highlighted specifications for certifying tax amount paid abroad, for the State Fiscal Service of Ukraine and provided recommendations to the client for further operation, based on specifications of the request.

Interlegal junior lawyer Viktoria Yankovskaya and lawyer Marta Sverdlykivska, under the general supervision of senior associate Kirina Riashentseva, led the project.