Left Because of the War: When Ukrainians Abroad Still Have to Pay Taxes in Ukraine
Many Ukrainians currently live outside the country due to the war. A significant number of them left as refugees but retain Ukrainian citizenship and property in Ukraine. The State Tax Service notes that prolonged stay abroad does not automatically mean losing the status of a tax resident of Ukraine.
According to subparagraph 14.1.213 of the Tax Code of Ukraine, the determination of tax resident status is carried out according to an established sequence of criteria.
The State Tax Service evaluates an individual's ties with Ukraine step by step. If one of the criteria defined by law confirms the resident status, further application of other criteria is no longer carried out.
At the same time, various circumstances may be taken into account during the assessment, including Ukrainian citizenship, the presence of housing, or other connections with the state.
According to the tax service's position, a Ukrainian citizen may remain a tax resident even in the case of prolonged stay outside the country if sufficient ties with Ukraine are maintained.
To determine the status, all circumstances provided by the Tax Code of Ukraine must be considered, not just the length of stay abroad.
To terminate the status of a tax resident of Ukraine, it is necessary to confirm the presence of appropriate grounds according to the legislation and residency determination rules.
As previously written by the "Judicial and Legal Newspaper", the Commissioner of the Verkhovna Rada of Ukraine for Human Rights, Dmytro Lubinets, explained what tax residency is and how Ukrainians should pay taxes abroad.
Tax residency is a characteristic that indicates the closest possible contact of a person with the country to which they pay taxes.
A tax resident is a person who, according to the legislation of a certain state, is subject to taxation there based on place of residence, permanent place of stay, place of registration, or another similar criterion.
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