Foreign income taxation: how to declare and not pay twice

Press service of the State Tax Service of Ukraine, published 18 July 2025 at 16:10 Chapter: News

Individuals – residents of Ukraine are required to declare income received both in Ukraine and abroad. Foreign income is subject to taxation in Ukraine.

Foreign income includes any income received by residents outside the customs territory of Ukraine or in uncontrolled territories, including from any types of their activities.

Such income is taxable by the:

personal income tax at the 18% rate,

military levy:

- at the 1.5% rate – for receiving up to and including to 31.12.2024,

- at the 5% rate – accrued (paid) from 01.01.2025.

For receiving foreign income in foreign currency, amount of such income is subject to conversion into UAH at the National Bank of Ukraine exchange rate on the date of its accrual (receipt).

How to declare foreign income

Individuals who have received foreign income are required to submit annual tax declaration on their assets and income by May 1 of year following the reporting year. This also applies to self-employed individuals.

It is possible to submit declaration being abroad in the following ways:

- by the mail – with delivery notification and description of the attachment not later than 5 days before the submission deadline;

- in the electronic form – through the taxpayer’s Electronic cabinet if a person has electronic key.

Amount of tax liability specified in declaration must be paid by August 1 of year following the reporting year.

Crediting of taxes paid abroad

Amounts of taxes paid outside Ukraine may be credited in the process of calculating tax liabilities in Ukraine.

For this it is necessary to:

provide certificate from a foreign tax authority on the amount of paid tax, base and/or taxation object (it must be legalized, unless otherwise provided for by international treaties).

In the absence of supporting documents, the payer may submit application to the tax authority at tax address to postpone deadline for submitting declaration – until December 31 of year following the reporting year.

Amount of tax paid outside Ukraine is credited in the amount that does not exceed amount of tax that must be paid in Ukraine.

Whether is it necessary to declare assistance received from the foreign sources

If you have received temporary protection abroad due to russian aggression, then assistance received from:

- foreign states and their state funds,

- companies, organizations that carry out charitable activities is not subject to taxation.

It is not included in total taxable income until the martial law is cancelled.

If the taxpayer received only such assistance, obligation to submit tax declaration is considered fulfilled. If there were other incomes, they are subject to declaration according to the general procedure.