Payoneer for entrepreneurs: peculiarities of paying tax and withdrawing money to the card

Payoneer is a convenient payment tool for entrepreneurs. Sole proprietors working with foreign clients can receive payment for services or goods through this system and withdraw money to a bank card. However, this income must be declared, as it is derived from entrepreneurial activity.

To take into account all the legal and accounting issues, you need to figure out how to register an account in the system and what taxes you need to pay.

Features of using Payoneer in Ukraine

This payment system is mostly chosen by freelancers, such as mobile app developers, programmers, web designers, photo and video stock creators, etc. The tool also expands the opportunities for LLCs and entrepreneurs to enter the international market. It is convenient to generate payment receipts and receive money transfers directly from abroad.

Payoneer is suitable for the following areas:

• export of services,

• freelancing,

• renting real estate for tourism purposes,

• online sales of products or clothing,

• digital assets: game art, photos, music, etc.

Payoneer offers the following business benefits:

1. For freelancers — is an opportunity to work directly with clients from Europe and America and receive salaries from them. To do this, use the "Request Payment" option and provide a payment receipt to the customer. In 2024, this platform will allow money transfers from 200 well-known platforms, such as Envato, shutterstock.com, Freelancer.com, Google AdSense, iStock, and others.

2. For marketplace sellers — the ability to manage several stores at once. This is an interesting option for those who have stores on Wish, Amazon, eBay, Cdiscount, and other platforms. In your Payoneer account, it is convenient to pay VAT directly from your balance. You can also make payments to suppliers and contractors directly. And you don't need to change money, withdraw it through other services, or lose money on commissions. All transfers can be made from your Payoneer account.

You can register in the system as:

• natural person,

• legal person,

• individual entrepreneur.

To take advantage of all the benefits of the platform, you need to register your account. However, according to the new rules, starting in 2024, a personal account is not required for a one-time money transfer. This procedure is required for regular users who actively work with foreign counterparties.

Registration with Payoneer

You can register on the official website. The procedure is free. However, only adults are allowed to register. Prepare any document that will confirm your identity and bank details in advance.

Please note that only PrivatBank is available in Payoneer when opening an account in UAH. To open an account in dollars or euros, you can specify card details of any other bank.

Fill in all fields of the registration form in English letters only. Use Google Translate for transliteration.

Stages of account creation:

1. Choose your status — company or individual entrepreneur.

2. Enter your full name and date of birth in the field.

3. Enter your e-mail, country, address, and phone number.

4. If you want, you can order a Payoneer Prepaid MasterCard right away. With it, you can easily pay for purchases at gas stations, shops, and withdraw cash in any country.

5. Create a strong Payoneer login and password.

6. Enter the details of your identity document.

7. Enter your bank details and account currency.

8. Check all your data and send the application form for approval by the platform administration.

The application processing process takes up to three days. You will receive a response letter to your email address. Follow the link and log in to Payoneer.

If you have any questions about registration, please contact Payoneer support. The technical support service works around the clock. In Ukraine, you can also call +38 (092) 022-10-40 if you have any questions.

Identity verification in Payoneer

User verification is required to avoid any delays in money transfers. To complete the procedure, you need to:

• select the "Account verification" option,

• click on "State-issued photo ID";

• specify the nationality,

• select the type of document to prove your identity,

• scans of the document,

• send personal data to the Verification Center for verification.

Withdrawal of money to Payoneer Privatbank

You can add only three bank accounts for withdrawing money.

Log in to your personal account and click the "Withdrawal" button, select the "To bank card" option, and enter the card number (hryvnia or dollar).

At the PrivatBank cash desk, you can withdraw money in foreign currency from a dollar card at any time. The minimum withdrawal amount to a dollar card is $300, and to a hryvnia card is UAH 50.

PrivatBank sets the following fees for withdrawing and depositing money:

1. Withdrawal of money to a bank account: 2%, withdrawal limit per transaction — UAH 15 thousand.

2. Cash withdrawals from ATMs: 3.5%, limit — UAH 15 thousand.

3. Cash withdrawals at the bank's cash desk: 6.5%, limit — UAH 15 thousand.

It is better to withdraw money to a PrivatBank card. If you withdraw cash from an ATM with a Payoneer card, you will have to pay an additional $3.15 fee.

It is also possible to withdraw dollars to Payoneer Monobank. The bank's commission is 0%. The minimum amount is $20. You can cash out money through any Ukrainian bank with a commission of 0.9%.

What taxes do I need to pay on Payoneer?

A user of the Payoneer system receives foreign income, i.e., payment for work or services outside of Ukraine. According to Art. 167 of the Tax Code, an entrepreneur must pay personal income tax — 18% + 1.5% military duty.

In order to declare your income, you need to:

1. Prepare and submit a declaration of property and income to the tax office by May 1 of the year following the reporting year.

2. Pay the tax by August 1 of the year following the reporting year.

Taxation for individual entrepreneurs

Most often, sole proprietors of the third group are registered to work with foreign clients. The tax on the income received will be 5%. At the same time, unified social tax must be paid on a quarterly basis.

For reporting purposes, you should keep a standard tax return form. A sole proprietor reflects all receipts of money in the document and indicates them as income.

Thus, the Payoneer system allows you not only to successfully develop your business and go international, but also to pay taxes directly from your account, which saves you time.

Use this handy tool to work legally with foreign clients and don't forget to declare your income and pay taxes on time.