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HomePublicationsRepresentative experienceCompanies registered for a residence permit in Ukraine must now pay mandatory tax

Companies registered for a residence permit in Ukraine must now pay mandatory tax

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For many years in Ukraine there has been a legal model of obtaining a residence permit - through the registration of a personal company. In short, a foreign citizen who wants to live in Ukraine, but does not have other grounds, creates a company in which he becomes the director. 

In this situation, a foreigner gets the right to obtain a residence permit and can safely reside in Ukraine for 1 year with the possibility of extending his residence permit.

Of course, there were simple rules for keeping such a residence permit - you need to submit periodic reports on the absence of activities in the company. So when we helped our clients to get a residence permit through the registration of a company in Ukraine, we offer not only our assistance, but also advice on how to submit these reports in the future so as not to lose his residence permit. After all, your company and your work permit as a director - is the basis for a residence permit. If there are problems with the company - there will be problems with the residence permit.

Related article: Getting a residence permit in Ukraine through the registration of a company

How has the situation changed with the new legislation?

During the war in Ukraine in 2022, the Ukrainian government adopted a number of new norms that regulate, among other things, the activities of such established “zero” companies.

First of all, it is specified in the new rules of work permit cancellation. Thus, a work permit may be cancelled if the employer has not paid the Single tax for a foreigner within two months from the date of the employment contract.

That is, in simple words: if you register a company to get a work permit and a residence permit in Ukraine, it can no longer just "lie on the shelf" - now with such a company for you as an employee will need to be the payment of Single tax tax, and such actions should be reflected in the financial statements of the company.

If the tax is not paid, the foreigner risks to remain without a work permit and residence permit for the whole year. 

The employer can determine and accrue wages in the minimum amount of 6700 UAH (starting from 01.01.2023) or in another amount defined in the employment agreement (contract).

To start the payment of wages and tax, the company must have an open bank account and open account of the foreigner in a Ukrainian bank.

Related article: Taxes in Ukraine for IT business or why Ukraine is a country for IT professionals

What do we offer our clients with such companies?

Last year we helped our clients, who plan to stay in Ukraine and do not want to lose their residence permit:

  • Set up the operation of the company;

  • Pay salaries and taxes;

  • Submit accounting statements.

We also helped: 

  • Open a bank account for the company and for a foreigner;

  • Create a payroll project (if necessary);

  • Get an identification code, if necessary;

  • Obtain signature keys for submitting reports.

Our company takes care of bookkeeping and payment of taxes for such companies. If the company has not filed accounts for previous reporting periods, our lawyers will also help you deal with this.

The cost of our company's services - from 300 USD per month, depending on the period for which you need our services.

If you do not want to lose your residence permit in Ukraine - contact us. 

Views: 470