How an entrepreneur to pay taxes from abroad?

The war in Ukraine forced many Ukrainians to go abroad in search of safety. That' s why now some entrepreneurs continue their activities abroad and pay taxes to Ukraine. Let's find out how they can do it.

Where do I pay my taxes?

You should pay taxes to the state treasury accounts at your place of registration. For example, if you are registered in Mariupol, where there are active military battles, you should continue to pay taxes to the accounts of the Mariupol treasury, just like in the pre-war period. The account details for paying taxes have not changed.

What currency to pay taxes in?

If you are abroad, you still need to pay taxes in the national currency of Ukraine hryvnia. The Tax Code of Ukraine provides for the possibility of paying taxes in foreign currency, but this option is only available to non-resident taxpayers who provide electronic services. The others must use hryvnia.

Is it possible to pay taxes with your personal money?

Yes, you can pay taxes with your own funds, money received from entrepreneurial activity, from sale of property, money received as a loan and from other sources.

From what account can I transfer money?

Taxes can be paid both from a business account opened with a bank and from a personal (card) account, i.e. opened for an individual.

• To pay money from a business account, you need to remember your login and password and know your tax payment details.
• If there are not enough funds on the entrepreneurial account, you can pay taxes from an individual's card account. Tax officials allow entrepreneurs to use personal funds.
• If there are not enough funds on your Ukrainian accounts to pay taxes, but you have funds on foreign accounts, you can transfer the required amount via international money transfer systems, for example Western Union.
• If you do not have an account in any Ukrainian bank, you can contact the online support of several banks and find out which of them will be able to open an account for you remotely.

How to open an account abroad?

The Foreign Exchange Act provides the possibility to open accounts abroad in foreign currencies and allows you to make foreign exchange transactions through such accounts.
There are no general rules for opening an account in Europe. Every country and even every bank may require a different set of documents. Due to the war in Ukraine and the large flow of refugees, some countries have simplified the requirements, and it is enough to have a passport to open an account.
The law does not require to notify the IRS of the opening of a foreign account. Therefore, there is no need to notify the tax office of the opening of such an account, neither after opening the account, nor after returning from abroad.

Can I pay taxes from a foreign account?

No, you can't pay taxes in Ukraine from your foreign account, because the law provides settlements in the national currency. This means that if you have funds on a foreign account, you need to transfer them to a current account or card account in Ukraine and then pay taxes in hryvnia. You can transfer funds in several ways: via instant transfers, from card to card, via SWIFT system to the account in IBAN format.

Is it possible to receive the proceeds of business activities in a foreign account?

Yes, it is. If you used to be engaged in foreign economic activity and received the currency on the account, opened in the Ukrainian bank, you can also receive payment under the contract on the account, opened outside of Ukraine.

This requirement is mentioned in the point 14.2 of the Resolution of the National Bank of Ukraine № 18 as of 24.02.2022.