Non-resident companies shall register with the Ukrainian tax authorities as payers of income tax

• Corporate & Taxes
• Investment & transactions

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.

Marta Sverdlykivska

sverdlikovskaya@interlegal.com.ua