The State Tax Service of Ukraine has published detailed clarifications regarding the taxation of income that Ukrainian citizens receive outside the country. As of 2026, this issue remains extremely relevant for millions of Ukrainians living abroad or having foreign funding sources. According to current legislation, all monetary receipts from foreign sources are subject to mandatory declaration unless otherwise directly provided for by the norms of the Tax Code or current international agreements on the avoidance of double taxation.
Main Types of Income and Tax Rates
In accordance with the fiscal agency's clarifications, tax residents of Ukraine are required to include various receipts in their total annual taxable income. This includes funds from renting real estate abroad, the sale of movable and immovable property, receiving dividends, bank interest, as well as inheritance and gifts from persons who are not close relatives.
The base personal income tax (PIT) rate for such receipts is 18%. However, exceptions are provided for certain categories: for example, dividends accrued by non-resident companies are taxed at a reduced rate of 9%. In addition to PIT, all foreign incomes of individuals are subject to a military levy, the standard rate of which is 5%.
Prevention of Double Taxation
An important aspect is the mechanism for preventing double taxation. If a citizen of Ukraine has already paid similar taxes on income received abroad to the budget of the host country, they have the legal right to credit these amounts when calculating their tax obligations in Ukraine. To do this, as part of the annual tax declaration, it is necessary to provide officially certified documents confirming the fact of tax payment outside the state, issued by the tax authority of the foreign country.
Controversial Data
Discussions regularly arise among the expert community and taxpayers regarding whether small money transfers from friends or humanitarian aid from abroad need to be declared. On the one hand, the Tax Code requires reporting all foreign receipts. On the other hand, in practice, difficulties arise with administering small transactions and determining their legal nature. The STS insists on total declaration of funds, while lawyers recommend carefully keeping bank statements, contracts, and any documents confirming the non-commercial or family nature of transfers to avoid penalties.
