As residents of Ukraine are required to declare all income except for those already taxed or exempt from taxation under the Tax Code of Ukraine (TCU), the Finevolution team offers a comprehensive individual income declaration service. We will detail who must file a declaration, what documents are needed, and how the income declaration process works.
Note: Individual income declarations must be submitted with the Controlled Foreign Corporation (CFC) report. You can use our service to prepare and submit CFC reports.
Who Must Submit an Income Declaration in Ukraine?
An individual is required to submit an income declaration if they:
- Received income abroad;
- Earned rental income;
- Inherited property from individuals who are not first- or second-degree relatives;
- Gained investment income;
- Received charitable or support funds;
- Had a forgiven loan or credit balance.
What Income and Property Must Be Declared?
- Income for which no personal income tax (PIT) was withheld at the time of payment;
- from non-tax agents, such as rental income, property sales, or the sale of personal agricultural produce;
- Inheritance or gifts from individuals who are not close relatives;
- from the sale of investment assets;
- Foreign income;
- Additional benefits include forgiven (canceled) debt or credit exceeding 25% of the minimum annual wage at the beginning of the reporting year (currently 21,300 UAH).
Deadlines for Filing an Income Declaration
Taxpayers may submit their income and property declaration for the previous year by May 1 of the current year through:
- Personal submission or through an authorized representative;
- Postal service, with acknowledgment of receipt and an inventory of documents, no later than five days before the deadline;
- Electronic submission via the taxpayer’s online cabinet.
Tax obligations must be paid by August 1.
Required Documents for Evaluation and Filing
- Income statements from foreign employers for the reporting year, with details on salaries, bonuses, and other payments.
Information about foreign income sources, including:
- Investment profits;
- Dividends from foreign companies;
- Salaries from foreign employers.
Additional income documentation:
- Dividend payment receipts;
- Inheritance certificates;
- Sales agreements for movable/immovable property.
Information about movable and immovable property owned during the reporting year, including:
- Location or make/model;
- Year of acquisition or manufacture;
- Total area (in sq. m);
- Ownership share in immovable property;
- Details of rental activities, if applicable.
To offset taxes with countries that have a Double Taxation Avoidance Treaty with Ukraine, individuals must provide a certificate from the relevant foreign tax authority confirming the tax amount paid and the tax base or object.
Unless an international agreement specifies otherwise, this certificate must be legalized in the issuing country and by Ukrainian diplomatic missions.
Penalties for Non-Submission
Failure to submit a declaration incurs a fine of 340 UAH. Repeated offenses within a year increase the fine to 1,020 UAH for each instance of non-submission or late submission. If failure to submit leads to tax evasion, the individual may face financial, administrative, or criminal liability depending on the unpaid tax amount.
Penalties for Tax Non-Payment on Undeclared Income
If a taxpayer fails to submit a tax return on property status and income within the prescribed period (if such submission is mandatory), the controlling authority has the right to independently determine the amount of the taxpayer’s monetary obligations based on the available tax information and the results of a documentary unscheduled audit.
Under Articles 123.1, 123.2, and 123.3 of the TCU, taxpayers are subject to financial penalties of 10%, 25%, or 50% of the additional tax liability.
Administrative liability is also applicable in such cases.
We will be happy to answer your questions and prepare a consultation for your case. Our working hours are 9:00-19:00 Monday through Friday. To request a consultation, send a request through the form below or a message on Telegram bot/Viber or WhatsApp chat.