Ukrainian unified tax solution

[optimus]

Ukraine does a lot of IT outsourcing, so invoices/payments to Ukraine are reasonable expenses for most companies.

Ukraine has a simplified tax of 5% for up to approx EUR 150k. This applies both to individuals as well as companies (simplified tax, type 3 - 5% as opposed to 3% as IT services are exempt from VAT).

Does anyone have any experience potentially working with Ukrainian freelancers for such a setup?

 

[GeorgeST]

Ukraine does a lot of IT outsourcing, so invoices/payments to Ukraine are reasonable expenses for most companies.

Ukraine has a simplified tax of 5% for up to approx EUR 150k. This applies both to individuals as well as companies (simplified tax, type 3 - 5% as opposed to 3% as IT services are exempt from VAT).

Does anyone have any experience potentially working with Ukrainian freelancers for such a setup?

Hi, I'm in house with Ukrainian rulls as well as many others jurisdictions, and have direct contracts with Ukrainians

 

[UniversalMan]

I worked with people with this business type in ukraine ,
it's just good to withdraw profits , as it's 5% on all money coming to this ukrianian FOP , so your expanses not deductable,
but you can definately withdraw your profits in a clean legal way like this

 

[Pauls]

I worked with people with this business type in ukraine ,
it's just good to withdraw profits , as it's 5% on all money coming to this ukrianian FOP , so your expanses not deductable,
but you can definately withdraw your profits in a clean legal way like this

Ukraine is not so easy to deal with from the profit withdrawal perspectives, it depends on your invesments structure. But you definitely can save on taxes by using lockal stuff, direct contracts allow you to have 5% effective rate (social security taxes on salaries)

 

[optimus]

@Pauls I didn't think in terms of investing, but a solution where a Ukrainian resident earns money from a company controlled by UBO, pays tax, but "gifts" or somehow transfers the proceeds back to UBO.

I see that Ukraine has lots of stringent currency controls, but I guess it's fairly simple to just keep EMI outside of the country? Alternatively utilize some of the lifted restrictions recently introduced?