Proposed Tax Changes – Ukraine
At the same time the draft law says that for a number of cases dual personal income tax rate is set.
It is suggested that such rate spreads on the profits accrued as reward or prize (except for the state pecuniary lottery) to residents or non-residents.
Dual rate, if the draft code is approved, non-resident individuals will have to pay taxes for all profits they earn.
The draft Tax Code also says that a 10% rate is applied to levy taxes on personal income received in the form of wages by miners, employees of mine-building enterprises, employed at underground works dull workdays, and also by workers of state-owned paramilitary emergency rescue services, and by a number of other categories of staff working in particularly harmful and heavy conditions.
Foreigner taxation – Again
New view of tax rules seen as illegal, but wise to prepare and avoid hefty fines
The issue could affect many companies and foreign citizens working in Ukraine. Moreover, it may be wise to prepare now and avoid stiff penalties imposed on those caught violating the new interpretation of Ukraine’s tax laws. If the employer does not withhold the appropriate tax, tax officials warn that 200 percent penalties will be applied.
Foreigner taxation
It appears that the Ukrainian Tax Authorities are becoming significantly more aggressive in respect of the tax rate that should apply to the local employment income of expatriates in Ukraine.
As we have reported in earlier Flash Reports, since mid 2009 a number of individual tax offices have applied the 30% tax rate to the locally paid salaries of expats, unless (and until) the expats have provided their certificate of Ukrainian tax residency to their employers.
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