What is taxable
Foreign salary, dividends, interest, rent, and CFC profit if you control a foreign company. These go in the annual property and income return, due by May 1 of the following year.
Rates
The general income tax rate is 18%. The military levy rose from 1.5% to 5% under Law No. 4015-IX, effective December 1, 2024.
You should also take into account the specific rates the TCU sets for particular income types, including foreign dividends — this article does not cover them in detail.
Foreign tax credit
Under TCU 170.11.2, you can reduce Ukrainian income tax by tax paid abroad if:
- a double tax treaty with that country is in force;
- you have a certificate from the foreign tax authority showing the tax paid and the tax base, legalized or apostilled unless the treaty provides otherwise.
Foreign tax does not reduce the 5% military levy.
The home-country view
If your home country also taxes you as a resident, it applies its own relief rules. The treaty decides which country taxes first.
Practical steps
Request tax certificates from foreign authorities early, keep proof of payment, and check whether your home country requires its own return.
Read more in the guide. Related: Foreign income while living in Ukraine, U.S. citizen in Ukraine.
