The reporting period for individuals follows the calendar year.
Every individual is taxed on their own income. Tax shall be deducted at the source in most cases. There is no aggregation of income for spouses, and returns are to be filed separately by married persons.
An individual is obligated to file a tax return with the local tax authorities (where the individual resides/is registered in Ukraine) if they receive income during the year:
- from sources that do not qualify as tax agents (e.g. foreign income), or
- in the form of investment profit or some other cases specified by the legislation.
Additionally, tax residents, including those whose income was subject to final taxation at the source, also have the right to file a tax return if they wish to claim a tax credit (deduction) in respect of certain expenses incurred during the year and/or claim a foreign tax credit in Ukraine.
The standard annual filing deadline is 30 April of the year following the reporting year. It can be extended to 31 December based on an application from the taxpayer if the documents for a foreign tax credit need to be obtained from a foreign jurisdiction.
If a person plans to depart Ukraine, the tax resident must submit a ‘departure tax declaration’ no less than 60 days prior to their departure and settle the tax due based on an assessment issued by the tax authorities. Theoretically, filing a departure tax return does not allow an individual to avoid filing an annual tax return.
Private entrepreneurs under the general tax regime are obligated to file tax returns by 9 February of the year following the reporting year and should declare all kinds of income (i.e. from entrepreneurial and non-entrepreneurial activities).
Private entrepreneurs registered for a simplified tax regime are obligated to report the amount of income received and tax paid during the reporting period on a quarterly or annual basis.
Payment of tax
Tax in respect of employment or other income paid by a tax agent (i.e. a Ukrainian entity or a representative office of a foreign company in Ukraine) must be withheld at the source. The tax is payable at the time of the income payment. When the income is received in-kind or from the cash desk, the tax is payable within three banking days (starting from 1 January 2017).
If income is accrued but not paid, the common approach is that the tax has to be transferred to the Treasury within 20 calendar days after the month when such accrual took place.
Tax liability due on a submitted tax return must be paid by the individual on a self-assessment basis by 31 July of the year following the reporting year, irrespective of whether the filing extension was applied for or not. Tax liability additionally calculated by the tax authorities should be paid by the deadline indicated in the tax assessment issued by the tax authorities.
PIT should be paid in Ukrainian local currency, hryvnia. There is no mechanism for payment of PIT in foreign currency, or directly from abroad.
Overpayment of PIT should be returned to the taxpayer within 60 calendar days from the date of filing the tax return. Upon a taxpayer's request, the overpayment may be offset against future tax liabilities.
Private entrepreneurs under the general tax regime are obligated to pay an advance tax in four instalments throughout the year. The final tax payment is due based on the tax return.