During the meeting, specialists of Horodotsk DPI informed the citizens that in accordance with subsections 170.11.1 and 170.11.2 of clause 170.11 of Art. 170 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI as amended (hereinafter referred to as the Tax Code) in the event that the source of payments of any taxable income is foreign, the amount of such income is included in the total annual taxable income of the taxpayer – the recipient, who is obliged to submit an annual tax declaration on property and income (hereinafter – the Declaration), and is taxed at the rate determined by Article 167.1. 167 PKU (18 percent), except for:
a) income specified in p. 167.5.4 clause 167.5 of Art. 167 PKU, which are taxed at the rate determined by paragraph 167.5.4 clause 167.5 of Art. 167 PKU (9 percent);
b) profit from operations with investment assets, which is taxed in accordance with the procedure specified in Article 170.2. 170 PKU;
c) profit of controlled foreign companies, which is taxed in accordance with the procedure specified in Article 170.13. 170 PKU;
d) payments in monetary or non-monetary form in connection with the distribution of profit, or its part, the source of which is an entity without the status of a legal entity, created on the basis of a deed or registered in accordance with the legislation of a foreign state (territory) without the creation of a legal entity, which are taxable in accordance with the procedure specified in p. 170.11 note. 1 Art. 170 PKU.
If, in accordance with the norms of international treaties, the binding consent of which has been given by the Verkhovna Rada of Ukraine, the payer of personal income tax can reduce the amount of the annual tax liability by the amount of taxes paid abroad, he determines the amount of such reduction on the specified grounds in the Declaration (clause 170.11.2 clause 170.11 of article 170 of the Civil Code).
According to Clause 13.3 of Art. 13 of the PKU, income received by a natural person – a resident from sources of origin outside Ukraine, is included in the total annual taxable income, except for income that is not subject to taxation in Ukraine in accordance with the provisions of the PKU or an international treaty, the binding consent of which has been granted by the Verkhovna Rada of Ukraine.
Clause 13.4 of Art. 13 of the PKU established that the amounts of taxes and fees paid outside of Ukraine are included in the calculation of taxes and fees in Ukraine according to the rules established by the PKU.
According to Clause 13.5 of Art. 13 of the Civil Code in order to obtain the right to credit taxes and fees paid outside of Ukraine, the payer must obtain from the state body of the country where such income (profit) is received, authorized to pay such tax, a certificate of the amount of tax and fee paid, as well as base and/or object of taxation. The specified certificate is subject to legalization in the relevant country, the relevant foreign diplomatic institution of Ukraine, unless otherwise stipulated by the current international treaties of Ukraine.
Taking into account the above, a resident natural person who received foreign income and paid taxes outside of Ukraine, in order to obtain the right to credit the paid taxes, must provide a certificate from the state body of the country where such income (profit) was received, authorized to pay such tax, about the amount of the paid tax and fee, as well as the base and/or object of taxation. The specified certificate is subject to legalization in the relevant country, the relevant foreign diplomatic institution of Ukraine, unless otherwise stipulated by the current international treaties of Ukraine.