UAH 22 billion in foreign income: Ukraine’s Tax Service already sees money abroad

On 28 August, Ukraine’s State Tax Service published telling statistics.

Based on 2025 income declarations, as of 1 August Ukrainians had filed 13,500 declarations reporting nearly UAH 22 billion in income received from sources outside Ukraine.

And it is not only the amount itself that matters.

The State Tax Service classifies foreign income as including salaries and remuneration for work or services, dividends, interest, royalties, inheritances, gifts, as well as income from the sale of property and investment assets abroad.

For an individual who is a tax resident of Ukraine, such income must generally be included in annual taxable income and declared. The State Tax Service reminds taxpayers of the 18% personal income tax rate and the 5% military levy, except where the law provides for different rules.

But there is another important point.

The State Tax Service expressly notes that Ukraine has double-taxation treaties with more than 70 countries and exchanges information with 84 foreign competent authorities.

In other words, money held abroad is gradually ceasing to be information that exists separately from Ukraine’s tax system.

This is particularly relevant for business owners who have:

• accounts with foreign banks;
• dividends from foreign companies;
• investment income;
• real estate abroad;
• controlled foreign companies (CFCs);
• other sources of income outside Ukraine.

At the same time, having income abroad does not automatically mean that you must pay the full amount of tax on it again in Ukraine.

If an international treaty is in force between Ukraine and the relevant country, tax paid abroad may, in cases provided by law, be credited in Ukraine. However, this requires properly documenting the tax payment with documents issued by the competent authority of the foreign state.

Therefore, the question today is no longer simply whether you have money abroad.

The real question is whether the information about your foreign income, assets, and structures corresponds to what you declare in Ukraine.

It is better to review these matters before the State Tax Service raises questions.

WINNER Law Firm assists with taxation of foreign income, determination of tax residency, CFC matters, international structuring, and preparation of documents confirming the source of funds.

Would you like a consultation?

📞 Call: 096 574 81 02
📧 Email: info@uk-winner.com

You can seek legal assistance now, so that you do not later need to seek legal defence services.

Author: Ihor Yasko, Managing Partner at WINNER Law Firm, PhD in Law.