Non-residents shall be understood as legal entities and subjects of business activities not having legal entity status (affiliates, representative offices, etc.) located outside of Ukraine, created and engaged in their activities in compli-ance with the legislation of another country.

 

Diplomatic representative offices, consulate establishments and other official representative offices of foreign countries located on Ukraine's territory, international organizations and their representatives having diplomatic privi-leges and immunity, as well as representative offices of other foreign organiza-tions and companies not engaged in business activities in compliance with the legislation of Ukraine.

 

Citizens having permanent residence in other country but receiving incomes originating from Ukraine. What non-residents engaged in business activity and receiving income on the territory of Ukraine should know on the tax system of Ukraine?

 

The basic Law on this issue is the Law of Ukraine «0n the Taxation System» (in edition as ofl8.02.97 taking into account changes and amendments).
According to Article 4 of the above-mentioned Law taxpayers and payers of dues (obligatory payments) are legal entities and individuals on whom the duty to pay taxes and dues (obligatory payments) is imposed in compliance with Laws of Ukraine.
What taxes are non-residents obliged to pay on the territory of Ukraine in com-pliance with its laws?

  • Profit Tax
  • Value Added Tax
  • Excise Duty
  • Peculiarities of Income Taxation of Foreign Citizens
  • State Duty
  • Land Fee
  • Tax on Owners of Transportation Means and Other Self-propelled Vehicles and Mechanisms



1. Profit Tax
Legislative and Normative Acts and Statutes that One should Follow:
  1. The Law of Ukraine «On Taxation of Enterprise Profits» (in edition as of May 22, 1997 with changes and amendments).
  2. Provision on the procedure for registration and bookkeeping of permanent representative offices of non-residents in Ukraine as profit taxpayers, approved by the Decree of the State Tax Administration of Ukraine as of January 16, 1998, No 23 (registered in Ministry of Justice of Ukraine on February 03, 1998, No 63/2503) with changes and amendments.
  3. The procedure for filing tax return on enterprise profit approved by the Decree of the State Tax Administration of Ukraine as of July, 08, 1997, No 214 (regis-tered in Ministry of Justice of Ukraine on August 14, 1997, No 313/2117) with changes and amendments.
  4. The procedure for filing profit tax calculation of a non-resident engaged in business activity on the territory of Ukraine through permanent representative of-fice, approved by the Decree of the State Tax Administration of Ukraine as of July 31, 1997, No 274 (registered in Ministry of Justice of Ukraine on August 28, 1997, No 352/2156) with changes and amendments.
  5. The procedure for presenting reports on withholding and transferring non-residents' profit tax sums to the budget, approved by the Decree of the State Tax Administration of Ukraine as of January 16, 1998, No 28 (registered in Ministry of Justice of Ukraine on January 30, 1998, No. 56/2496).


2. Value Added Tax
The Law of Ukraine «On the Value Added Tax» in the wording of April 3, 1997, No 168/97-BP with respective changes and amendments is valid as of October 1, 1997. In addition, one has to obey the President's Decree of August 7, 1998, No 857 «On Certain Issues of Taxation» which came into force as of October 1, 1998 (chart 2).

3. Excise Duty
Legislative and Normative Acts and Statutes that One should Follow:
  1. The Law of Ukraine as of April 16, 1991 No 959-XII «On External Eco-nomic Activity with changes and amendments.
  2. The Decree of the Cabinet of Ministers of Ukraine as of December 16, 1998, No 18-92 «0n Excise Duty with changes and amendments»
  3. The Decree of the President of Ukraine as of May 11, 1998 No 453/98 «0n Payers and on Procedures of Excise Duty Payment»;
  4. «Regulations on Time-frame of the Excise Duty Payment and Filing of the Excise Duty Calculation», approved by the decree of the GDIP of Ukraine (Gen-eral Directorate on Providing Services to Foreign Representative Offices) as of De-cember 25, 1995 No 99, registered in the Ministry of Justice of Ukraine on De-cember 29, 1995 No 488/1024, taking into account changes and amendments in-troduced by the decree of the State Tax Administration of Ukraine as of February 19, 1997 No 42, registered in the Ministry of Justice of Ukraine on March 12, 1997 №76/1880, and the decree No 217 as of April 20, 1999 registered in the Ministry of Justice of Ukraine on May 05, 1999 No 284/3577.


4. Peculiarities of Income Taxation of Foreign Citizens
Legislative and normative Acts and Statutes that One should Follow: Income tax is levied from citizens on the ground of the Decree of the Cabinet of Ministers of Ukraine as of December 26, 1992 №13-92 «On Income Tax on Citi-7.ens» with changes and amendments, on the ground of which Instruction «On In-come Tax on Citizens» with changes and amendments was worked out and ap-proved by the Decree of the Central State Tax Inspection of Ukraine as of April 21, 1993 №12.
Peculiarities of income taxation of foreign citizens and persons without citizen-ship are defined in Article 15, 16 of the Decree.

5. State Duty
Legislative and Normative Acts and Statutes that One should Follow:
The state duty is levied grounding on the Decree of the Cabinet of Ministers of Ukraine as of January 21, 1993 №7-93 with changes and amendments on the ba-sis of which the Instruction «0n the Procedure for Assessing and Levying the State Duty» was worked out and approved by the Decree of the Central State Tax In-spection of Ukraine as of April 22, 1993 №l5.
Additionally, one has to follow the Law of Ukraine as of March 23, 1999 №539-XIV «0n Introducing Changes to Certain Legislative Acts of Ukraine».

6. Land Fee
Main Legislative and Normative Acts and Statutes that One should Follow:
  • The Law of Ukraine as of March 13, 1992 №2200-XII «Land Code of Ukraine»;
  • The Law of Ukraine as of September 19, 1996 №378/96-BP «0n Payment for Land»;
  • The Law of Ukraine as of October 06, 1998 №161-XIV «0n Land Rent».
  • The complete collection of legislative acts «Land Relationships in Ukraine» was edited under the editorship of the «Visnyk Podatkovoyi Sluzhby» («Herald of the Tax Service») magazine in April, 1999.


7. Tax on Owners of Transportation Means and Other Self-propelled Vehicles and Mechanisms
Legislative and Normative Acts and Statutes that One Should Follow:
The Law af Ukraine as af February 18, 1997 №75/97- BP« On Tax on Owners of Transportation Means and Other Self-propelled Vehicles and Mechanisms».
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