Non-resident companies shall register with the Ukrainian tax authorities as payers of income tax
18 March, 2021
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According to the last amendments to the Tax Code of Ukraine, non-resident companies shall register with the Ukrainian tax authorities as payers of income tax. The due date is before April 1, 2021.
This requirement applies to:
– non-residents who have registered subdivisions in Ukraine, including permanent establishments (PEs);
– non-residents who conduct business activities in Ukraine.
Earlier all the tax duties were assigned to PEs – it was their responsibility to keep records, pay taxes in Ukraine and submite relevant reports to tax authority. Now these obligations on income tax will be transferred to the non-residents (parent companies of PEs).
From the moment of tax registration of non-resident, subdivision (PEs) will be deregistered with the tax authorities as a payer of income tax. At the same time, subdivisions (PEs) of non-residents will continue to be payers of other taxes (e.g., VAT, taxes and fees from wages of staff, land tax, etc.).
To sum up, in case you:
– have permanent establishment or other subdivision in Ukraine;
– conduct business activities in Ukraine; or
– are going to receive income with a source of origin from Ukraine this year;
then you need to make analysis of the current situation and/or ask for advice.
We are ready to assist you with the subject issues, give our recommendations and take the necessary steps to make registration with the tax authorities in Ukraine.
