Is it possible to pay salary to another person's card: tax consequences in 2026
An employee's salary can be transferred to another person's account based on the employee's application, provided that the norms of civil legislation are observed, and no repeated withholding of personal income tax (PIT) and military tax arises.
The State Tax Service, referring to the norms of the Civil Code of Ukraine, explains:
- under a power of attorney contract (part 1 of article 1000 of the Civil Code of Ukraine), one party undertakes to perform legal actions on behalf of and at the expense of the other party;
- the actions of the attorney must be lawful, specific, and feasible (part 1 of article 1003 of the Civil Code of Ukraine);
- the attorney is obliged to immediately transfer to the principal everything received in connection with the execution of the power of attorney (article 1006 of the Civil Code of Ukraine).
Thus, the person who actually receives the funds acts as an attorney and does not acquire ownership rights to these funds.
It is also noted that according to article 245 of the Civil Code of Ukraine, a power of attorney for receiving salary can be certified by an official of the enterprise where the principal works or at their place of residence. Notarization is not mandatory.
It is separately emphasized the difference between a power of attorney and an employee's application: in the case of a power of attorney, another person may contact the employer to receive the salary, whereas in the case of an employee's application, the issue requires additional legal regulation.
The most frequent question from employers is whether there is an obligation to withhold PIT and military tax again when transferring salary to a third party's account.
The State Tax Service states that no double taxation occurs. The salary remains the income exclusively of the employee with whom the employment contract is concluded (subparagraph 164.2.1 of the Tax Code of Ukraine).
Regarding the authorized person, they do not acquire income within the meaning of the Tax Code, since they act within the scope of the power of attorney contract and are obliged to transfer the received funds to the principal.
As previously reported by «Judicial and Legal Newspaper», in Ukraine, problems arose with the payment of state aid in the amount of 1,500 UAH, which was previously announced by the government for certain categories of the population. Due to technical failures, some citizens received the funds on their accounts again, after which in some cases bank cards began to be blocked for further social payments.
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