Avoid double taxation. Ukrainians were allowed to receive a certificate of tax residency online — a copy of the application

The Ministry of Finance has adopted an order that allows entrepreneurs to obtain a certificate confirming their residence in Ukraine online. This will avoid obtaining residence abroad and, accordingly, solve the problem of double taxation for those who left due to the war, the state regulatory Service reports.

The main thing is that the Ministry of Finance has adopted an order according to which Ukrainians can get a certificate confirming their residency online. This will allow Ukrainians not to acquire the status of a tax resident of another country and, accordingly, it will be easier to avoid double taxation, according to the state regulatory service.The certificate will be issued with transliteration in English in accordance with international standards. However, an electronic certificate is only one of the additional tools that will help resolve the issue of tax residency. The Ukrainian government solves the problem of double taxation at the level of negotiations with the leadership of other states, and there is no final solution yet. Details

Approved ministry order and certificate form:

In the application for a certificate, you must specify: the name of the legal entity (or full name for individuals), tax number, passport series and number, location, citizenship, and choose from the list provided the basis for determining the status of a tax resident of Ukraine.

Previously, such a certificate was issued only in paper form. Accordingly, this made it difficult or even impossible for those who went abroad to obtain it under martial law.

"This could lead to the fact that citizens of Ukraine, not wanting it, risked being recognized as residents of other countries, and therefore, paying taxes not to the budget of Ukraine. This applies to all business entities, and first of all to the IT industry, which last year brought in more than.6.8 billion in export revenues," the ministry said.

The certificate and procedure were developed on the initiative of the state regulatory service in cooperation with the Ministry of finance, the Ministry of digital transformation and the state tax service of Ukraine.

Recall that staying in Europe for more than 183 days can create legal uncertainty in the status of tax residency of Ukrainian refugees and lead to the need to pay taxes in the country of temporary stay.

BRDO and the IT Association of Ukraine believe that it is critically important for Ukraine that financial flows, despite the war, remain in the state. They form the tax base, GDP, and add foreign currency earnings.

Currently, Poland has allowed Ukrainians who work remotely not to pay taxes.

Earlier, the European Business Association called on the government to resolve the issue of tax residency of Ukrainian citizens abroad. The government of Ukraine will send a letter to all tax authorities and governments of the EU countries with a request to apply the "covid precedent", when many people were forced not to live in their tax residency countries due to flight cancellations, and the "180-day tax residency rule"was not applied to them.

According to the UN, currently most Ukrainian refugees in Europe have received temporary protection status in Poland — 1 million 274.1 thousand, Germany — 670 thousand, the Czech Republic — 413 thousand, Italy — 150.3 thousand, Spain — 133.8 thousand, Bulgaria — 129.4 thousand, France — 96.5 thousand, Slovakia — 86.8 thousand and Austria — 78.2 thousand.