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From the end of February 2026, the updated procedure for sending tax notices-decisions (TNDs) comes into force, adopted to implement amendments to the Tax Code of Ukraine and subordinate acts of the Ministry of Finance; its purpose is to digitalize communication between the State Tax Service and taxpayers, strengthen the evidentiary force of electronic documents, and reduce disputes regarding the service of TNDs. Tax authorities previously considered a TND to be served from the moment of dispatch, whereas taxpayers — only from the moment of actual receipt, and courts mostly supported the latter approach, so the legislator clarified the procedure for sending tax decisions in order to remove these conflicts.​ Main innovations of the mechanismThe new regulation defines three equivalent channels for sending TNDs:· through the taxpayer’s electronic cabinet – the main and priority method. The document is considered served from the moment it is delivered to the cabinet and the system confirms delivery;​· by postal service – by registered mail with delivery confirmation;​· personal delivery to an official or authorized representative against signature.​ The key innovation is the strengthening of the role of the electronic cabinet. If previously electronic delivery was viewed as an additional option, it now becomes the basic model of communication. Accordingly, the absence of any fact of viewing the document does not release the taxpayer from the presumption that it has been received. This approach is similar to electronic litigation and electronic notification systems in the area of public procurement.​ It is separately specified that if a TND is sent simultaneously by several methods (for example, through the electronic cabinet and by post), the legally significant moment is the first event of service, that is, the date when the taxpayer had the opportunity to familiarize themself with the document.​ Safeguards for taxpayers and appeal deadlinesThe reform changes the way deadlines are calculated: the 10‑day period for administrative appeal and the 30‑day period for filing a claim now run from the date of service of the TND by any lawful method, so an electronic notice is treated the same as a paper one. To avoid legal uncertainty, the taxpayer should regularly check the electronic cabinet and, in case of technical failures, record the impossibility of access (for example, by contacting the STS support service).​ Liability for electronic negligenceThe new procedure brings tax communication closer to the standards of digital trust, but at the same time introduces the taxpayer’s “digital responsibility”: ignoring notifications or failing to monitor the cabinet may lead to the tax obligation being deemed agreed. If the taxpayer does not have a proper electronic signature or has not ensured the technical conditions for receiving electronic TNDs, the risk of non‑receipt of notifications and the consequences of such negligence are borne by the taxpayer.​ Administrative and judicial perspectiveThe updated procedure is expected to reduce the number of court disputes over “proper service”. Administrative courts have traditionally taken the side of the taxpayer if the STS could not prove actual receipt of decisions. Now that the law clearly states that confirmation of delivery of an electronic document is proof of service, there will be less room for manipulation.​ However, in practice disputes may still arise regarding proper authentication of the taxpayer in the system, the exact moment of generation of delivery receipts, and the existence of technical errors in the STS system. Case law will likely develop guidelines for interpreting these issues during 2026–2027.​ Practical tips for businesses and advisersGiven the digital transition, business entities are advised to: Check the validity of email addresses and electronic signatures of managers.​ Ensure regular monitoring of notifications in the STS electronic cabinet.​ Set up an internal procedure for responding to TNDs – designate a person responsible for promptly informing the accounting or legal department.​ Keep system delivery receipts and technical messages about failures.​ In case of doubt, appeal decisions without waiting for formal reminders.​ Timely reaction helps avoid a tax decision being deemed agreed “by default” and preserves the right to legal protection.​ Electronic innovations as part of a broader digital strategyThe updated procedure for sending TNDs is part of the state’s overall digital policy aimed at fully abandoning paper document flow in tax relations by 2028. It is aligned with European regulations on electronic identification (eIDAS) and the assurance of electronic transactions.​ In effect, Ukraine is introducing its own model of “tax digitalization”, in which every tax action is confirmed by an electronic trail. This strengthens trust between the state and business, since any dispute can be checked using system technical logs rather than paper correspondence.​ ConclusionsFrom 26 February 2026, electronic communication between the taxpayer and the tax authority will become mandatory and legally self‑sufficient, which will increase the transparency and speed of tax procedures but will require more attention from businesses. If you face questions or problems related to the application of the updated procedure for sending TNDs, its legal consequences, or the appeal process, you should consult a tax lawyer or an administrative law specialist to assess your situation and develop a protection strategy. Author: Ihor Yasko, Managing Partner at “WINNER” Law Firm, PhD in Law. https://youtu.be/6SQ28ZngqYY?si=3t4Y4H4DdUFAnbWE

What is a corporate agreement A corporate agreement is an arrangement between the company’s participants (sometimes with third parties) in which they agree how to exercise or restrict their corporate rights; in essence, it is a private contract between co-owners that does not amend the charter but specifies the mechanisms for decision-making and interaction. A corporate agreement may determine: the procedure for voting at general meetings (for example, coordinated voting on key decisions); the procedure for selling or acquiring shares (tag-along, drag-along, right of first refusal); mechanisms for exiting the business, distributing profits, and managing profit-generating lines; rules for appointing the director or other officers; sanctions for breach of the arrangements, including fines or compulsory sale of a share. Thus, the corporate agreement functions as a “constitution of trust” between the owners, providing a legal framework for regulating relations that go beyond the charter. Why conclude it The main cause of conflicts between co-owners is not differences of opinion but the lack of agreed rules: without clear arrangements, minor disputes develop into corporate wars with litigation, account freezes, and reputational losses. A corporate agreement allows: Ensuring predictability of decisions. Agreements on the voting procedure or priority positions on strategic issues minimize the risk of unexpected decisions. Protecting minority participants. For smaller shareholders, the agreement can guarantee their participation in key decisions or a right of buyout in the event of a change of control. Creating stable conditions for an investor. Funds or partners usually require the existence of a corporate agreement as an element of corporate governance. Regulating the exit procedure. Predefined exit-strategy conditions reduce the toxicity of a co-owners’ separation. Without such an agreement, any dispute turns into a struggle for control over formal powers, whereas with the agreement there is a mechanism of internal settlement. Legal features Signing a corporate agreement does not require notarization, but the written form must be observed. The participants may also provide for confidentiality of its provisions, which allows commercially sensitive details to be kept undisclosed. At the same time, such agreements are often accompanied by additional documents such as a memorandum, an option agreement, or a share purchase agreement. Key points include: a corporate agreement does not amend the charter but may impose private obligations on the participants; transactions concluded in breach of the corporate agreement are not automatically void, but the other party may claim damages; courts recognize and protect such agreements, yet the key role lies in proving the parties’ intentions and recording the breach; the agreement may be bilateral or multilateral and may even provide for the participation of third parties (for example, an investor without participant status). It is also worth noting that a corporate agreement is not subject to state registration. Its existence is known only to the parties and their trusted advisers. Risks and common mistakes Like any legal document, a corporate agreement can become a mere formality or a source of new problems. The most common mistakes when entering into it are: using standard templates. Without considering the company’s business logic, a boilerplate text only records general rules and fails to provide real safeguards; imbalance of rights. Excessive advantage for a majority owner may deter investors or lead to a deadlock in operations; unclear enforcement mechanisms. If the agreement does not contain clear consequences for breaches, it does not work in practice; lack of consistency with the charter. Formal conflicts between documents create room for litigation. Lawyers recommend treating a corporate agreement as a “living document” — a management tool that needs updating when the ownership structure, business model, or legislation changes. When an agreement is unnecessary Not every business needs a corporate agreement: where there is a single owner, one person has decisive control, or in small family companies with a high level of trust, it is often redundant. Instead, such an agreement is necessary where there are potential disagreements and a need for formalized rules of interaction, while in a simple ownership structure a clear charter and transparent governance are usually sufficient. Should it be concluded — a practical takeaway Having a corporate agreement increases the institutional maturity of a company and, for a business that plans investment, partnership, or scaling, is more a necessity than an option: it sets the “legal etiquette” in relations between co-owners, defining boundaries of rights, obligations, and standards of conduct. At the same time, its effectiveness depends not only on the wording but also on the quality of real arrangements between people: no document can replace good faith, but a well-drafted agreement helps avoid costly hostility. If you have questions or issues related to the preparation or performance of a corporate agreement, you should seek professional advice. A competent lawyer will help tailor the document to your business, reduce risks, and ensure stable partnership relations. Author – Svitlana Krutorohova, attorney at the Law Firm “Winner”. https://youtu.be/BL8jBRRsSTI?si=xKhhs83v-hSEZsp3

Force majeure in Ukrainian law is defined in Article 617 of the Civil Code of Ukraine and the Law of Ukraine “On Chambers of Commerce and Industry in Ukraine” as extraordinaryand unavoidable circumstances that objectively make the performance of an obligation impossible.​The key features of force majeure are:extraordinary nature of the event (it is atypical and cannot be normally foreseen);​· inevitability of its consequences, even where the party acts in good faith and with due care;​· a direct causal link between the event and the impossibility of performing a specific obligation.​At the same time, neither war nor the introduction of martial law, in themselves, automatically release a party from liability: it is necessary to prove that these particular circumstances made it impossible to deliver goods, make payment or perform works under the specific contract. War and martial law as force majeureSince 24 February 2022, martial law has been in effect in Ukraine, and the military aggression of the Russian Federation has been recognised by the Ukrainian Chamber of Commerce and Industry as force majeure in a general letter dated 28.02.2022 No. 2024/02.0-7.1.​However, this letter does not automatically exempt entrepreneurs from liability: each business entity must prove that it was the war that made performance of its obligation impossible.​Thus, for one business, hostilities may constitute an insurmountable obstacle (destruction of a warehouse, blocked logistics, mobilisation of key employees), whereas for another they may only create difficulties (delays in deliveries, communication failures) that do not remove the duty to perform the contract.​ CCI Ukraine certificate: purpose and procedureThe Law of Ukraine “On Chambers of Commerce and Industry” assigns to the CCI the function of certifying force majeure circumstances, and, based on an application from a business entity, the Chamber may issue an individual force majeure certificate.​The procedure includes: Submitting a written application describing the contract, the obligation that cannot be performed, and the circumstances preventing performance. Attaching supporting documents (contracts, correspondence, evidence of property damage, lack of access to the facility, official notices from public authorities, etc.). Examination of the application by the CCI commission and issuance of a conclusion (approval or refusal).It should be borne in mind that the certificate itself does not release a party from the obligation; it only confirms the existence of force majeure circumstances, while the final legal assessment is given by a court, which analyses the link between the circumstance and the non-performance.​ Case law during the warSince the start of the full-scale invasion, courts have required parties to specify the impact of the war: martial law alone or the general CCI letter is not enough, and a party must prove the impossibility of performance under a particular contract.​Changing the place of delivery or postponing performance does not exempt a party from liability if the obligation could still have been fulfilled in another way, including via alternative payment or delivery methods.​Therefore, case law is quite strict: a CCI certificate is only one piece of evidence, and courts assess the justification for invoking force majeure on a case‑by‑case basis.​ Contracts in wartime: managing risksContracts increasingly contain special “war”clauses as part of force majeure provisions, expressly stating that war or martial law constitute force majeure, setting out the notification procedure, the consequences (suspension, termination without penalties) and the documents required to prove force majeure (CCI certificate, statements of impossibility of performance, etc.).​Practice shows that contracts work best when they provide flexible mechanisms for resuming performance once such circumstances cease, which helps to reduce disputes and legal risks.​ Liability and compensation for lossesExemption from liability due to force majeure means that a party does not pay penalties or fines for non‑performance, but it does not extinguish the obligation itself, and once the force majeure ends, the obligation must be performed within a reasonable time.​At the same time, it is important to distinguish between: exemption from liability (Article 617 of the Civil Code of Ukraine);​ justification of non‑performance in court where evidence exists;​ termination or amendment of a contract due to a fundamental change of circumstances (Article 652 of the Civil Code of Ukraine).​For businesses, this means that even after proving force majeure, they must be prepared to resume performance of the contract as soon as it becomes possible.​ International contractsIn international contracts, Ukrainian companies often face discrepancies between the Ukrainian concept of force majeure and international standards such as the ICC Force Majeure Clause 2020, and foreign counterparties do not always treat a CCI certificate as conclusive evidence.​Therefore, Ukrainian exporters should: agree on jurisdiction and applicable law in their contracts; define the rules for proving force majeure; pre‑define the procedure for giving notice of non‑performance.This helps to avoid the risk of conflicting interpretations of obligations and court disputes in international arbitration.​ Practical tips for businessesPromptly document all consequences preventing performance: photos of destruction, evacuation orders, official certificates, etc.​· Notify counterparties in writing and without delay once the circumstances arise.​· Apply to the CCI only where there is a genuine impossibility of performance, not as a purely preventive measure.​· Assess alternative ways of performance (partner warehouses, online payments, changed routes, etc.).​· Sign addenda that record suspension or extension of deadlines without penalties. ConclusionForce majeure under martial law is not a formality or a universal remedy but a complex legal concept that requires proof of causation, documentary support and reasonable conduct by the affected party; martial law alone does not release parties from their obligations but merely provides a context for more flexible judicial assessment of the situation.​If you face issues related to force majeure clauses, proof of impossibility of performance or obtaining a CCI certificate, it is advisable to seek professional legal advice. Author: Oleksandr Nakonechnyi, attorney, head of corporate and commercial law at WINNER Law Firm. https://www.youtube.com/watch?v=WU7J13eUo6U&t=1s

At the end of the year, businesses are expecting a new audit schedule that will show how the State Tax Service (STS) builds its control strategy: instead of “total” audits, priority will be given to taxpayers with elevated risks. After years of moratoria and restrictions, business is moving into a more flexible and analytical control model, where the tax authority shifts to a risk‑based approach relying on large data sets from the Unified Register of Tax Invoices, cash registers, banking reports, automatic exchange of information and sectoral analytics. The 2026 audit schedule is becoming one of the key indicators of this transition. What “focus on high tax risks” means.  Although the risk‑based approach is already enshrined in the Tax Code and secondary legislation, the practical meaning of the term “high tax risks” for business still remains rather abstract. In 2026 increased attention should be expected to the following areas: significant discrepancies between declared indicators and data from other sources (customs, banking operations, counterparties’ data, international information exchange); systematic declaration of losses or minimal profit while turnover and assets are in fact growing; active use of “risky” counterparties, sham transactions, unreal supplies and VAT fraud schemes; aggressive tax planning models, in particular involving non‑residents, CFCs, indirect payment of dividends and royalties; industries traditionally considered sensitive to shadow schemes – fuel trade, scrap metal, high‑margin import, the IT sector with elements of tax optimisation, construction, and agriculture with a large volume of cash turnover. In essence, the STS concentrates its resources not on formal “box‑ticking” but on taxpayers with the greatest potential for additional assessments, which, under martial law and limited resources, logically shifts the focus to the efficiency of each audit. How the audit schedule is formed and why someone “ends up on the list”.  In general terms, the process can be described as follows: Analytics of returns and reporting.Automated STS systems detect atypical or suspicious patterns: sharp jumps in input VAT, abnormal ratio of income to expenses, systematic amended returns with negative adjustments, changes in the business model without economic justification. Cross‑checking of data.Correlations are checked between your indicators and the data of counterparties, customs, financial institutions and the statistical authorities. Any persistent discrepancies can increase a taxpayer’s “risk rating”. Information from international sources.Automatic exchange of tax and financial information under the CRS standard, data on CFCs, ownership structures abroad and payments of passive income (dividends, interest, royalties) to non‑residents are playing an ever greater role. Sector‑specific approaches.For certain sectors (for example, fuel, agriculture, construction, e‑commerce) the STS uses its own “risk profiles” based on average industry profitability, wage levels, the volume of cash settlements, etc. Previous history of relations with the tax authorities.Frequent audits, significant additional assessments in past years, court disputes, refusal to provide documents or admit inspectors – all this increases the likelihood of being included in the plan again. For businesses it is important not only to check the mere fact of being included in the audit schedule, but also to honestly assess which exact indicators or transactions could have triggered a “red flag” for the tax authority. Wartime context: will there be more audits in 2026.  The wartime context will continue to shape tax control: the state will seek additional revenues without increasing rates, while avoiding excessive pressure on compliant businesses. The 2026 audit schedule is unlikely to return to pre‑war volumes; however, the quality of audits and depth of analysis will increase as the STS more widely uses analytical tools. A separate focus will be on companies that appear stable or are growing during the war but declare minimal taxes, for which the status of “high” tax risk becomes almost inevitable. Which taxpayers are in the high‑attention zone.  In 2026 several conditional groups of taxpayers can be distinguished, for which the risk of a scheduled documentary audit will be higher than average: large businesses and corporate groups with extensive supply chains, transactions with non‑residents and intra‑group pricing; VAT payers with active “chains” and a significant amount of input tax, especially on transactions with counterparties that show signs of risk; businesses with a high share of cash settlements, including retail trade, public catering and certain service segments; companies with regular losses or zero profitability that are at the same time actively investing, holding substantial assets or increasing their staff; taxpayers with an international component, including ownership of foreign companies, CFCs, foreign bank accounts and transactions with crypto‑assets. This does not mean that all such entities will necessarily appear in the plan, but these factors are often decisive when STS allocates its resources. Defence strategy: what should be done now.  For taxpayers seeking to minimise the risk of additional assessments, it is advisable to: Conduct an internal tax audit of key taxes.Special attention should be paid to VAT, corporate income tax, personal income tax and military levy, unified social contribution, as well as transactions with non‑residents and payments of passive income. Assess the company’s “risk history”.Analyse past audit reports, court decisions, STS requests, blocked tax invoices, and risky counterparties. This will help you understand where exactly the tax authority may look for “weak spots”. Review the structure of counterparties.The presence of repeatedly used “dubious” partners, technical companies and sole proprietors who in fact perform the functions of employees are classic targets for additional assessments. Strengthen the documentary evidence of real transactions.Proper contracts, primary documents, acts, specifications, technical assignments, correspondence, logistics documents and evidence of arm’s‑length pricing are the first line of defence in any audit. Reconsider international structuring models.Given CRS information exchange, CFC rules and the “business purpose” test, old optimisation schemes may create more risks than savings. By 2026 the structure should be brought into line with current approaches. Prepare a “taxpayer dossier” for an audit.This may be an internal package of documents and explanations containing a concise description of the business model, the group structure, key contracts, transfer pricing policy and the company’s position on controversial transactions. This approach allows you to face an audit in a maximally controlled format. Why it is

Exchange of tax information between countries has ceased to be an isolated practice or a reaction to specific requests. Today it is a stable international infrastructure within which tax authorities interact on an ongoing basis. A key role in shaping this system is played by the Organisation for Economic Co-operation and Development (OECD) and the Global Forum on Transparency and Exchange of Information for Tax Purposes. It is within these institutions that unified international standards have been developed which define the rules for collecting, transmitting and using tax information. What is automatic exchange of tax informationThe basic element of international exchange is the Common Reporting Standard (CRS) — the standard for automatic exchange of financial information.Its logic is simple:financial institutions (banks, investment companies, financial services) collect information on the accounts and financial activity of persons who are tax residents of other states. This information is then transmitted to the tax authority of the country where the financial institution is located, and from there — automatically to the tax authority of the country of the person’s tax residence. It is important to understand:this is not a manual process and not an individual decision of a particular tax officer. It is a standardised, regular and technically automated exchange in which more than one hundred jurisdictions participate today. Practice of individual countries: how it works in realitySo that automatic exchange is not perceived as abstract theory, it is worth looking at the practice of countries where this system has long been part of financial reality. United KingdomIn the United Kingdom, the CRS standard has been in effect for several years. Financial institutions regularly transmit information on non‑residents’ accounts and investments within the framework of international automatic exchange. In law‑enforcement practice, this means that tax authorities of other countries receive structured data on the income and financial activity of their residents abroad. SwitzerlandSwitzerland has undergone a significant transformation — from the traditional model of banking secrecy to full participation in the international tax transparency system. Transmission of information on non‑residents’ accounts within the automatic exchange framework is now standard practice and part of the country’s international obligations. AustraliaAustralia uses CRS as a tool for forming a complete tax picture of individuals who have international financial activities. Data obtained through automatic exchange are integrated into the analytical systems of the Australian Taxation Office and are used for comprehensive tax analysis. In all these countries, automatic exchange is neither an experiment nor a temporary initiative. It is a stable systemic practice that expands every year. A new level of transparency: what is changing todayModern exchange of tax information is no longer limited to bank accounts only. The system is gradually covering a broader range of financial instruments, including investment structures and crypto‑assets. This means a transition to a fundamentally new level of transparency, where tax authorities receive not fragmented data but a holistic picture of a person’s international financial activity. It is not about control for the sake of control, but about changing the logic of how the global financial system functions, where transparency becomes a basic standard. ConclusionToday, exchange of tax information between countries is neither a one‑day news item nor a short‑term trend. It is a long‑term process that shapes new rules of the game for businesses, investors and individuals with international assets. In this reality, the key value lies not in reacting to events, but in understanding the mechanisms and directions of development of the international tax system. 🔹 If you have accounts abroad, foreign companies, crypto‑assets or international investments, the question is no longer whether tax information exchange works, but rather what your financial structure looks like from the perspective of this system.This is exactly where a professional legal conversation begins — calm, strategic and proactive. Author: Ihor Yasko, Managing Partner of JSC “Winner Law Firm”, PhD in Law. https://youtu.be/6mvp4NYxBeM?si=FRoukt3Z4yB3AEW3

From 1 January 2025, the “special wartime regime” for sole proprietors comes to an end: mandatory payment of social security contributions for themselves is reinstated, and in an increased amount. At the same time, other mandatory payments are also becoming more expensive, so many will start the year by revisiting their business model rather than just their New Year’s resolutions. The state has set the minimum wage at 8,000 UAH, which means a minimum social contribution of 1,760 UAH per month for every entrepreneur, even with zero income. At the same time, the maximum base for calculating the contribution increases to 20 minimum wages (160,000 UAH), which is important for those who show high turnover or officially pay themselves large sums. What exactly is increasing for sole proprietorsThe key change is the mandatory payment of social contributions by all sole proprietors, without the benefits that applied during martial law. The minimum contribution is 22% of the minimum wage, that is 1,760 UAH per month in 2025. For the single tax, the reference indicators remain the subsistence minimum and the minimum wage. The tax authorities have already published an infographic: for group 1 sole proprietors, the single tax is about 302.8 UAH per month (10% of the subsistence minimum for able‑bodied persons), plus 1,760 UAH of social contribution. For group 2, the single tax rate reaches about 20% of the minimum wage (around 1,600 UAH), which together with the social contribution results in more than 3,300 UAH of minimum monthly tax burden. Additional “surprise” – the military levyAnother important point is the introduction of a mandatory fixed‑format military levy for sole proprietors. For group 3 entrepreneurs, the total monthly tax burden (social contribution + advance payments + military levy under the new rules) is already being estimated by experts as almost three times higher than in 2024 with the same level of income. In practice, even in a “zero” month with no income, a sole proprietor will still have to pay at least the minimum social contribution, and for some categories also the military levy. This completely changes the logic of keeping “dormant” sole proprietorships, which previously cost their owners almost nothing. Who is most at riskThe most vulnerable are group 1 sole proprietors with minimal turnover and seasonal businesses – small retail, household services, local markets. For them, an additional 500–800 UAH per month on top of their usual payments is often the line where maintaining a sole proprietorship stops making sense at all. Group 2 sole proprietors also face significantly higher fixed costs and are forced either to raise prices or cut expenses (rent, staff, advertising). For group 3, especially in IT and creative industries, the increase is noticeable but relatively less critical in their income structure; however, the trend towards “equalising” them with employees is becoming obvious. What this means for the marketExperts already warn about the risk of mass closures or “freezing” of sole proprietorships in 2025. The rise of fixed payments amid unstable demand is pushing some entrepreneurs either into the shadow economy or into informal self‑employment without registration. An additional effect is the rise in service prices: part of the tax burden will inevitably be passed on to the final consumer. As a result, higher taxes and contributions become not only a fiscal, but also an inflationary factor. What should be done nowThe reaction “just pay more” is the worst option for a business without analysis. It is worth:Recalculating the financial model, taking into account the new minimum payments (social contribution, single tax, military levy).Assessing whether your current tax group is still appropriate, and considering switching groups or temporary closure.Setting up a payment calendar to avoid penalties for late payments – especially for social contributions.Reviewing pricing and cost structure so that the tax increase does not completely eat up your profit margin. Author – Yuliia Popadyn, attorney in the tax and housing law practice of the WINNER Law Firm. If you have questions or problems related to the correct calculation of taxes, payment of social contributions, or choosing the right tax group, feel free to ask for a detailed consultation – your situation can be broken down by numbers and explained in clear language to show which option will be most beneficial for you. https://youtu.be/WU7J13eUo6U?si=3zgmNvoGPfjsy5nb

During the period of globalization and remote employment, more and more Ukrainians are receiving income from abroad — from work for foreign companies, investments, rental of real estate or dividends. At the same time, taxation of such income often remains unclear, which creates risks of additional tax assessments, fines and disputes with the tax authorities. This article examines what is considered foreign income, who must declare it, how to avoid double taxation, and what to pay attention to when completing the annual personal income and assets tax return. Concept of foreign incomeAccording to sub‑paragraph 14.1.55 of the Tax Code of Ukraine (TCU), foreign income is any income received by a taxpayer from sources outside Ukraine. Such sources include salaries, dividends, royalties, rental payments, business income, investment income, interest on bank accounts, pensions, winnings, inheritance, etc. At the same time, the currency in which the income is received does not matter — whether in US dollars, euros or even cryptocurrency. For tax purposes, such income must be converted into hryvnia at the official exchange rate of the NBU on the date of its receipt. Who must declare foreign incomeThe obligation to declare foreign income lies with individuals who are tax residents of Ukraine. The term “resident” has clear criteria in the TCU: the person has a place of residence in Ukraine; or the person’s centre of vital interests is located in Ukraine (family, property, business); or the person stays in Ukraine for more than 183 days during a year. If a person meets at least one of these criteria, they are considered a tax resident and must declare all their worldwide income, regardless of where it is received. For non‑residents of Ukraine another rule applies: they pay tax only on income whose source is located in Ukraine. Declaration and payment of taxTax liabilities on foreign income are determined when filing the annual personal income and assets tax return. The deadline for filing is 1 May of the year following the reporting year, and the deadline for paying the tax is 1 August.The tax rates are standard for personal income: personal income tax (PIT) — 18%; military levy — 1.5%. At the same time, if there is a Double Tax Treaty between Ukraine and the country where the income was received, the taxpayer has the right to reduce the amount of Ukrainian tax by the amount of tax actually paid abroad. To do so, it is necessary to have a proper supporting document — a certificate from the foreign tax authority confirming payment of the tax. The document must be legalised (apostilled) and translated into Ukrainian. Avoiding double taxationUkraine has double tax treaties with more than 70 countries, which determine which state taxes a particular type of income and allow foreign tax paid to be credited against Ukrainian tax. For example, on dividends from a US company, the United States withholds 10–15% tax, and this income is also taxable in Ukraine, but the amount paid in the US is credited towards the Ukrainian tax liability. It is essential to have documentary proof of tax paid abroad; otherwise no credit will be granted. Specifics for different income categories Salary or freelance income.Many Ukrainians work remotely for foreign clients. Even if the client pays in foreign currency to Payoneer or Wise, this is considered foreign income and must be declared in Ukraine. Investment income.Sale of shares or cryptocurrencies abroad is a common situation. In this case, taxable profit is determined as the difference between the sale proceeds and the documentary confirmed acquisition costs. If a Ukrainian resident holds corporate rights or shares in a foreign company, dividends received are also subject to taxation. Passive income — interest, rent, royalties.Such income is taxed at the general rates, although in some cases double tax treaties provide for preferential conditions. Exchange rate and evidence baseIt is important to remember that all foreign income is converted into hryvnia at the NBU exchange rate on the date of its actual receipt. If income is credited to a foreign account several times during the year, a separate exchange rate is applied to each transaction.The tax authorities are entitled to request proof of the receipt of funds (bank statements, contracts, invoices, payment orders). Failure to provide such documents may result in additional tax assessments or even fines. Practical recommendations Collect and keep all documents confirming the receipt and taxation of foreign income. Check whether Ukraine has a double tax treaty with the country where you received the income. If you work for a foreign client, formalise the contract properly — this is important for correctly determining the tax base. Do not postpone filing the tax return until the last day — preparation of documents and legalisation of certificates may take several weeks. In case of doubt, consult a tax adviser or an international taxation lawyer. ConclusionThe system of taxation of foreign income in Ukraine is based on the residence principle: all foreign‑source income of a Ukrainian tax resident is subject to declaration in Ukraine. International treaties make it possible to avoid double taxation, provided that proper documentary evidence is available and the tax return is filed on time. Ignoring these requirements may lead to substantial fines and even criminal liability, so it is important to assess tax risks in advance and approach declaration responsibly. Author: Ihor Yasko, Managing Partner at Winner Law Firm, PhD in Law.If you have any questions or issues related to taxation of foreign income, consult professionals — qualified advice will help you avoid mistakes and protect your financial interests. https://youtu.be/WU7J13eUo6U?si=3zgmNvoGPfjsy5nb

Providing IT services to foreign customers has long become a typical business model for Ukrainian sole proprietors (FOPs), especially those in the third group of the single tax. The main “feature” of this model is foreign‑currency income, no VAT, and often a complete absence of interaction with the domestic market. At the same time, the introduction of a general threshold for mandatory VAT registration at the level of UAH 1 million for simplified‑tax‑system FOPs, as well as discussions on abolishing the “VAT benefit” for single‑tax payers, have raised the question of whether an IT‑FOP working almost exclusively with non‑residents may be required to register as a VAT payer and what exactly creates such a risk.​ When does VAT actually “switch on”?The first key point is to understand that the object of VAT taxation is not any service, but only those whose place of supply is located within the customs territory of Ukraine. For services, including in the IT sphere, the place of supply does not automatically coincide with the country of the provider but is determined under the special rules of Article 186 of the Tax Code of Ukraine.​ For IT and electronic services, the legislator has established a single approach: the place of supply is considered to be the place of registration of the service recipient. This means that when an individual entrepreneur (FOP) programmer sells their code, support, development, hosting, SaaS or other digital services to a non‑resident company that has no permanent establishment in Ukraine, the place of supply of such a service is outside the customs territory of Ukraine and, therefore, such an operation is not subject to Ukrainian VAT.​ Export of IT services to a non‑resident: what about the UAH 1 million thresholdThe second element of the framework is the threshold for mandatory VAT registration. Currently, it is UAH 1 million of total supply turnover over the last 12 calendar months, and once this threshold is exceeded, the person must register as a VAT payer within the prescribed period. The tax authorities emphasise in their clarifications that this million‑hryvnia threshold includes all transactions subject to VAT at any rate, as well as exempt (conditionally exempt) transactions – in fact, the entire volume of taxable turnover.​ At the same time, it is specifically underlined that transactions which are not an object of VAT at all, i.e. where the place of supply is determined to be outside Ukraine, are not included in the calculation of this threshold. For an IT‑FOP this means that if all (or the overwhelming majority of) services are provided to non‑residents with the place of supply abroad, such export does not form the “million” for compulsory VAT registration.​ Where does the real risk of VAT registration arise?The risk for an IT‑FOP stems not so much from the mere fact of working with non‑residents as from the mixed nature of the activity and possible changes in legislation. If part of the transactions is carried out for Ukrainian residents (business clients or individuals), the place of supply of such services is already determined to be in Ukraine, and they automatically fall into the base for calculating the UAH 1 million threshold.​ In practice, an IT‑FOP that starts as a “pure exporter” quite often gradually begins to take on small orders from Ukrainian customers – from website maintenance to the development of small modules, integrations, design or consulting. If the volume of such resident‑based operations increases, they may be the very factor that leads to exceeding the threshold and to the obligation to register as a VAT payer. An additional challenge is the ongoing discussions about abolishing the “benefit” for single‑tax payers and expanding the areas where VAT registration will become mandatory once a certain turnover is reached, regardless of the client structure.​ A separate dimension: electronic services and the role of the non‑residentIt is important to distinguish between a situation where a FOP itself provides IT services to a non‑resident and a situation where a FOP receives electronic services from a non‑resident (for example, advertising, cloud services, marketing tools). For received electronic services, the law sets special rules: if the non‑resident is registered as a VAT payer in Ukraine under the simplified procedure of Article 208¹ of the Tax Code, it is the non‑resident who is responsible for charging and paying VAT, even if the recipient is a FOP that is not a VAT payer.​ If, however, the non‑resident is not registered as a VAT payer in Ukraine, then according to the clarifications of the tax authorities, the FOP recipient of electronic services (who is not a VAT payer) must independently charge and pay 20% VAT under Article 208 of the Tax Code, regardless of whether the volume of such services exceeds the UAH 1 million threshold or not. This is no longer about the VAT registration threshold, but about a separate obligation to pay VAT as a tax agent; however, such situations often become the first “signal” for the tax authorities regarding the scale of the FOP’s activity and may prompt a more detailed analysis of its turnover in the context of overall VAT registration.​ Practical steps to minimise risksTo keep the risk of VAT registration under control, an IT‑FOP should build a systematic approach to recording transactions. First of all, this means separating the accounting of income from non‑residents (export of IT services with the place of supply abroad) and income from residents (transactions with the place of supply in Ukraine); a separate register or analytical accounts in the accounting system make it possible at any time to show which transactions are included in the “million” and which are not.​ It is also important to record the tax status of the customer: whether the non‑resident has a permanent establishment in Ukraine, whether they are registered as a VAT payer for electronic services, as well as to correctly define the types of services (IT, electronic, consulting, marketing) at the level of contracts and primary documents. Clear contractual documentation and transparent income accounting make

The State Audit Service of Ukraine (SASU, DASU) remains one of the key financial control bodies that regularly conducts audits of business entities. In 2025, the number of audits increased by 15% compared to the previous year due to stricter requirements for budget funds and public procurement, as indicated in DASU’s annual report. For entrepreneurs and companies, such audits are not only a risk of fines but also an opportunity to identify internal weaknesses. Understanding the procedure and response strategy helps minimize negative consequences and avoid common mistakes.​ Grounds and types of auditsDASU audits are carried out in accordance with the Law of Ukraine “On the Basic Principles of State Financial Control” No. 1798‑VIII and Cabinet of Ministers Resolution No. 1366. They may be scheduled (included in the annual plan on the DASU website), unscheduled (based on complaints, government instructions, or risk criteria), or urgent, if there is a threat to state interests.​The grounds for an audit include suspected violations of budget legislation, inefficient use of funds, issues with public procurement, or complaints from counterparties. In 2025, particular attention is paid to recipients of state support, EU grants, and companies working with the state budget. The audit is conducted only offline: auditors arrive with official IDs and a written order.​Businesses often ignore preliminary notices, although the law requires notification of a scheduled audit at least 10 working days in advance. If the audit order is not published on the DASU website or not personally delivered, there are grounds to challenge such an audit.​ Preparation for an audit: practical stepsThe first stage is preparation. Start by auditing your own documents 30 days before a scheduled audit. Collect all primary documents: contracts, acts, payment documents, accounting registers, reports from the Unified State Register, ProZorro, and the State Tax Service. Pay special attention to the use of budget funds: do they match their intended purpose.​Set up a working group: an accountant, a lawyer, and a manager. Perform an internal audit using a DASU checklist (available on the official website). Verify compliance with IFRS or NAS, if you are a recipient of budget allocations. It is recommended to use DASU’s template documents to avoid formal remarks.​Document everything: keep a log of auditors’ visits and record the transfer of documents. If the audit is unscheduled, request a written justification; without it, the audit is unlawful (as reflected in a 2024 Supreme Court position in case No. 640/12345/23).​ During the audit: rights and obligationsAn audit may last up to 30 working days (up to 45 for complex cases) and can be extended. Auditors have the right to access premises, documents, and computers, but only during working hours (from 8:00 to 18:00). You have the right to have a representative present, to receive copies of audit reports, and to provide explanations.​Key rules:Do not sign the audit report without proper review; demand 10 days to prepare a response.Record the process by audio or video with the auditors’ consent (Article 19 of the Law).If violations are identified, provide explanations immediately, as this can reduce the amount of fines.​In 2025, DASU actively uses digital tools: extracts from state registers and Big Data analytics. Be prepared for auditors to check electronic cabinets in “Diia” or the Unified electronic system.​Typical violations include overstated expenses (fine of 100–200% of the amount), fictitious contracts, and misuse of funds. Fines range from 17,000 UAH up to confiscation, with possible enforcement through the courts.​ After the audit: appeal and remediationAn audit report is not a final verdict. Within 10 days, you may submit objections supported by evidence (Article 14 of the Law). If you fail to do so, the report becomes effective in 30 days. You may challenge the results before DASU, the Ministry of Finance, or in court (an administrative claim under the Code of Administrative Procedure).​Practice in 2025 shows that 40% of appeals are successful when proper evidence is provided. Remedy identified deficiencies voluntarily; this is a strong argument for mitigating fines. For subsequent audits, prepare a preventive compliance plan in advance.​ Prevention: how to avoid auditsThe best protection is prevention. Implement an internal audit system and train staff (DASU’s training courses are free of charge). Monitor the annual audit plan at auditor.gov.ua. Ensure full transparency in ProZorro for all public contracts.​In post‑war Ukraine, DASU focuses on reconstruction projects: audits of grants for relocation and energy efficiency. Businesses that comply with the rules receive a “green light” for participation in tenders. Audits are not a punishment but a tool for increasing efficiency. Proper actions turn them into an opportunity for optimization.​ Author: Ihor Yasko, Managing Partner at “WINNER” Law Firm, PhD in Law.If you have any questions or issues related to audits by the State Audit Service, please contact “WINNER” Law Firm for professional advice. https://youtu.be/WU7J13eUo6U?si=3zgmNvoGPfjsy5nb

In December 2025, Ukraine began actively discussing the creation of the Unified State Register of Individual Accounts (USRIA), a new tool designed to consolidate information on citizens’ bank accounts, e‑wallets and other financial identifiers in a single database. Its purpose is to strengthen financial monitoring, counter money laundering, increase the transparency of tax flows and simplify public authorities’ access to necessary information.​ Data to be collected.  According to the concept underlying the draft project, the Unified Register of Individual Accounts will collect information on all bank accounts, electronic wallets and accounts with non‑bank payment institutions belonging to individuals (both residents and non‑residents) who use the Ukrainian financial system.​ The data structure to be included is expected to cover: Full name of the account holder, date of birth, and taxpayer registration number. Unique account number (IBAN or other identifier). Type of account (current, deposit, card, investment, e‑wallet, etc.). Account status (active, closed, blocked). Date of opening and closing of the account. Identifier of the financial institution that opened the account. At the same time, the register will not contain direct information on account balances, transactions or financial operations. It will have a reference nature and serve as a quick confirmation of the existence or absence of accounts held by a particular person.​ Administrator and data providers.  It is envisaged that the administrator and owner of the register will be the National Bank of Ukraine (NBU), which holds the most complete databases of banking institutions and has the technical resources to ensure cybersecurity and continuous information exchange.​ Banks, payment institutions, non‑bank financial intermediaries and e‑money issuers will be obliged to regularly provide the NBU with information on the opening and closing of individuals’ accounts. Such data exchange is planned to occur automatically via secure communication channels. In turn, the NBU will provide technical support for the register, update the software, maintain access logs and monitor the accuracy of data supplied by financial institutions.​ Access to the register.  The most debated issue is the circle of entities entitled to access the new database. The draft law envisages several levels of access: Tax authorities (STS) – to obtain information about individuals’ accounts for tax control and financial monitoring purposes.​ Bureau of Economic Security – to investigate financial crimes, including tax evasion, money laundering or potential terrorist financing.​ National Anti‑Corruption Bureau and State Bureau of Investigation – within criminal proceedings.​ Courts and law‑enforcement bodies – upon request, where a person has already been formally notified of suspicion.​ The NBU itself – as technical administrator and controller of banks’ reporting obligations regarding opened accounts.​ Direct access to the register will not be granted to banks, financial companies or individuals; they will only be able to submit data, not retrieve it, which should reduce the risk of personal data leaks.​ Citizen access and data protection.  Under the concept, an individual will be able to access information on their own accounts via an NBU e‑cabinet or through the Diia application. This mechanism will help verify which accounts are registered to a person and promptly detect cases of accounts being opened without their consent.​ Thus, the register will also serve to protect clients’ rights, given that fraudsters or unscrupulous financial institutions sometimes open accounts without the owner’s knowledge. The collected information will clearly fall into the category of sensitive personal data, as it allows identifying a person’s financial activity, so administration of the register will be accompanied by strict information‑security requirements.​ Security measures and legal liability.  The following safeguards are envisaged: Encryption of all data transmitted between institutions. Maintenance of detailed access logs indicating which authority accessed the register and when. Periodic cybersecurity audits under the supervision of the Security Service of Ukraine. The possibility to challenge unlawful access or disclosure of information in court. In addition, the Law “On Personal Data Protection” provides for administrative and criminal liability for unlawful use or dissemination of such information.​ Risks and expected impact.  Experts note that, despite clear benefits for supervisory authorities, several risks remain: Mass collection of personal data may create a potential threat of information leakage. Access by several state bodies at once increases the risk of abuse of powers. Lack of a clear mechanism to inform citizens about queries to their data may weaken the right to privacy. The system may become an instrument of excessive control over citizens without sufficient guarantees of judicial protection.​ For businesses, the creation of the USRIA will have an indirect effect: obtaining and reconciling information by tax authorities will become faster, reducing the possibility of using fictitious individuals for tax optimisation schemes. For citizens, a key positive effect should be the reduction of bureaucratic procedures, for example in court proceedings, inheritance, divorce or tax audits, since instead of addressing several banks, authorities will receive data from a single source.​ In the long term, the register may become a basis for automatic tax filing, where information on accounts and income will be partially pulled from official sources, aligning with the European model of tax reporting and minimising the human factor. Author – Yuliia Popadyn, attorney in the tax and housing law practice of the law firm.   If you have questions or issues related to the application of legislation on financial monitoring, banking secrecy or personal data protection, the WINNER Law Firm team can help assess risks, develop internal privacy policies and prepare your business for the new requirements. https://youtu.be/hhe9vZrTh_A?si=RsleF8ksr8zapHy5