Taxation of Foreign Income of Individuals

It was my pleasure to speak at the meeting of the committee on tax and customs law of the Ukrainian Bar Association on the topic of taxation of foreign income of individuals. 

The most complex and at the same time hottest issue in this context is the issue of taxation of Ukrainian refugees in foreign countries. 

Generally, foreign countries treat Ukrainian refugees as their tax residents. Ukraine is not ready to give up the tax revenues and continues considering such refugees as its own tax residents as well.  

The solution to these intricacies lies in the realm of double tax treaties. At the same time, the least favorable situation seems to exist for the refugee who keeps working remotely in Ukraine under an employment contract.  

There is a risk that, in addition to salary taxes withheld in Ukraine, such a refugee may face in the country of his/her foreign stay foreign income tax and possibly social contributions in respect of his/her Ukrainian salary.