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HomePublicationsComments on legislationTo withdraw money from a Ukrainian company abroad: tips from a lawyer

To withdraw money from a Ukrainian company abroad: tips from a lawyer

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It is possible to open a business in Ukraine in different ways, for example by registering a representative office of your company in Ukraine, or by opening a Ukrainian company, where your firm will be the only participant. Of course, in this case, the main aim will be to make a profit. 

Naturally, you are immediately faced with a logical question: how to profitably withdraw the money earned from Ukraine, without overpaying the tax?

Our lawyers will provide you with an individually designed algorithm of actions, which you will be able to apply in the work of your company and have no problems at that.

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Schemes of tax optimization of foreign business in Ukraine

There are many tax optimization schemes. There is no universal one that would suit everyone. This is why the optimal solution when entering a market of a foreign country is to consult a tax lawyer - he will be able to analyze the situation, try on possible legal solutions, some of which we will describe below and choose the one that fits perfectly.

Our company also offers outsourced accounting services for companies in Ukraine - this can be a great solution for you at the beginning of your business journey in Ukraine. You will be able to concentrate exactly on running your business, and be sure that all reports are filed correctly and on time.

Let's look at one of the most popular schemes for conducting foreign business in Ukraine - through a subsidiary company.

Often foreign entrepreneurs choose the option of opening a LLC in Ukraine in order to have more options for choosing the taxation system. Another advantage of doing business through a subsidiary company is the possibility to take money abroad by paying only Single Tax or VAT on the profits of the LLC. 

In this scheme, the withdrawal of funds to the parent company occurs through the payment of dividends to the parent company. The following taxes will have to be paid:

  • 18% income tax; 

  • 15% tax on dividends - paid by the founding person when transferring the remaining amount after payment of the previous tax to the parent company. 

There are other possible schemes - work through agency or commission contracts, withdrawal of money through receiving services from a subsidiary company, etc. Your optimal scheme will depend on the type of activity, your business model, the scale of production.

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Consulting a tax lawyer for companies in Ukraine

Our lawyers:

  • Analyze your situation and your vision of doing business in Ukraine;

  • Consider and select possible schemes of optimization of taxation of the withdrawal of funds in the parent company;

  • Will help to choose the best option;

  • Will calculate the possible risks and tell you how to avoid them.

You want to organize your business in Ukraine in the right way and avoid any possible problems with the tax authorities? Contact us! We will not only help you to solve one-time problem situations, but are ready to help you practically by providing tax and accounting services to your company.

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