Planning any transactions and/or business in Ukraine a foreign corporate entity and/or a foreign natural person should keep in mind, that such transactions have certain tax consequences.

There are several possible regimes of tax treatment for real estate transaction in Ukraine, which depend on status of the seller (as far as the rule is that taxed not the transaction itself, but profits received in the result of the same with certain exemptions).

Private (natural) persons including non-residents of Ukraine are tax treated on the grounds of the Law of Ukraine "On Personal Income Tax" effective as of January 1, 2004 with numerous subsequent amendments, which are continuously included into the same by Ukrainian Parliament (Verkhovna Rada Ukrayiny).

Corporate entities including non-residents of Ukraine and registered offices (representations) of  foreign (non-resident) corporate entities in Ukraine are tax treated on the grounds of the Law of Ukraine "On Enterprise Profit Tax" effective as of January 1, 1995 with numerous subsequent amendments.

Accounting, taxation and tax planning in Ukraine – it is rather sophisticated task as well as far as the same requires of appropriate specialist to have significant experience in this field of activities and to monitor the applicable tax regulations continuously as far as the same are continuously changed and amended.

The above two Ukrainian tax legal regulations provide different tax rules for resident and non-resident corporate entities and natural persons and accordingly the different tax rates, terms and conditions.

Therefore appropriate tax planning and consulting is to be considered as the essential element of any transaction and/or business in Ukraine, especially if the same includes a foreign (non-resident) corporate entity or natural person. The best way to implement such tax planning is to obtain timely tax advice form a Ukrainian accountant or even better from a Ukrainian auditor or an audit company (which are considered to be the professional tax advisers in Ukraine).

Our Law Firm has UKRCONSULTING ACCOUNTING & FINANCE PE Daughter Company, which offers excellent accounting and tax planning services for corporate and private clients. For most sophisticated and complicated accounting and tax situations we can offer assistance of our Partner Company SOM AUDIT AUDITING FIRM with a couple of experienced accountants and auditors, which can also offer various audit services if required.

Returning to taxation of non-resident corporate entities and private non-resident individuals in Ukraine should be mentioned that Ukraine has rather wide network of international treaties on avoidance of double taxation, namely it has treaties on avoidance of double taxation with Algeria, Armenia, Australia, Austria, Azerbaijan, Byelorussia, Belgium, Brazil, Britain, Bulgaria, Canada, Member states of the CEMA, China, Croatia, Cuba, Cyprus, Czech, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Kazakhstan, Korea, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Macedonia, Malaysia, Mongolia, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia and Montenegro, Slovakia, South African Republic, Spain, Sweden, Switzerland, Syria, Tajikistan, Turkey, Thailand, Turkmenistan, United Arab Emirates, United States of America, Uzbekistan, Vietnam and Yugoslavia.

The above information is provided herein in educational and informative purposes only. It is provided that you have to get appropriate legal advice as regarding the legal and other issues of your interest in Ukraine in order to have the exact, extensive and up-to-date legal and other related information.

Do not hesitate to contact us if you have any questions or issues of legal nature, our Law Firm is working for you and our experienced legal specialists are always ready to help providing the client with appropriate legal consultations, legal reports and summaries, reasonable legal advices and all the other required legal support, assistance, coverage and protection.