Publication date: 07.06.2024
lawyer, 23 years of experience in enforcement.
The services provided to non-legal entities that are residents of Ukraine and the taxes related to the income received from them depend on the formal organization of the Ukrainian business and the taxation system in which it is involved.
I. Individual entrepreneurs in the second group of the single tax are not recommended to serve non-resident legal entities, because the income from this service will be subject to a single tax of 15% plus the income of the next quarter, which must be transferred to the third group.
FOPs are assigned to the second group in accordance with the norms of the Tax Code of Ukraine (hereinafter referred to as the Tax Code of Ukraine) if they conduct business activities in the provision of services, including household services, to single tax payers and/or the population, production and/or sale of goods, activities in the field of restaurants farms and farms that have a taxable income of $834 of the minimum wage (item 2, item 291.4 of the Code of Civil Procedure).
A non-resident legal entity, which is not a single tax payer, is excluded from the population, and therefore cannot receive services through the FOP of the second group, which is contrary to the provisions of clause 291.4 of the Code of Civil Procedure.
In this case, the income received by the FOP will be taxed at the rate of 15% (as defined in clause 293.4 of the Code of Civil Procedure), and the entrepreneur must submit an application for transfer to the 3rd group from the next quarter after the quarter in which he provided services to a non-resident legal entity ( clause 9 298.2.3 of the Code of Civil Procedure).
II. More often, natural persons receive income according to the 3rd group of seniority, and not according to the 1st or 2nd group.
In this case, the foreign payment will be taxed at the rate of 5% of its total value. At this point, the FOP will not have a tax debt (clause 2 of clause 293.3 of the PKU). Non-profit organizations of the third group have the right to engage in any activity, except for the one specified in para. 291.5.1 of the Code of Criminal Procedure, with any other participants who have an annual income of 1,167 times the minimum wage (paragraph 3, clause 291.4 of the Code of Criminal Procedure of Criminal Procedure).
A legal entity that is not a resident can order and receive FOP 3 group services.
As a result, any income from the 3rd group of UAH 8,285,700. in 2024 will be subject to a final tax rate of 5%.
The negative side of the transition from the second to the third group is an increase in the rate of the single tax on regular income from the sale of goods in Ukraine.
If you have about 4 million hryvnias. Each year, the amount of money you receive from the sale of goods in the ordinary course of business is divided by the number of years in the second group, if you are in the second group, you pay a single tax on this income at the flat rate, which is 16,080 in 2023 and 17 040 in 2024.
When moving to group 3, the single tax on the same income will amount to UAH 200,000 per year, because all types of income will be taxed at a rate of 5%.
The beneficial side of FOP residence in the 3rd category is a rate of 5%, which is finally applied to all sources of income within 1167 minutes. first, the Tax Code does not provide for more favorable conditions for taxation of income received from the provision of services to legal entities; secondly, there is no such preferential rate in Europe.
III. As an addition to the optimization of taxation, it is possible to create a separate legal entity that will become the only payer of the 3rd level tax with a fee of 5%.
In order to provide services and receive foreign exchange earnings from foreign legal entities in Ukraine, a new company is created, which chooses a simplified tax system of group 3 with an EP rate of 5%. Income from services provided by him to foreign customers will be taxed at the rate of 5% within the limits of UAH 8,285,700. during the year. The single tax will be paid in hryvnias from income converted into dollars at the NBU exchange rate on the day of payment.
This type of enterprise will not be registered as a VAT payer (clause 2 of clause 293.3 of the Code of Civil Procedure).
After paying the single tax, the corporation will keep and own its income. The corporation can use them for its own purposes.
To get these sources of income in your name, you have to pay 9% income tax and 1.5% military expenditure tax.
The payment of tax on dividends and the obligation to pay military servicemen is the final tax on the income of the recipient of dividends (clause 170.5.4 of the Civil Code).
When a company receives service income from foreign clients, the final tax costs under this important rule will be 5% tax, 9% dividend tax and 1.5% military expenditure. That is, the actual total tax rate will be 14.975%.
In this option, the tax is 9% (half of the rate established by Clause 167.1 of the Civil Code) for income received from dividends on the assets of a legal entity that is not a tax payer (Clause 167.5.4 of the Civil Code). Civil Code); the amount of dividends is taxed with a military levy in the amount of 1.5% (item 1.4 of item 161 sub-item 10 of chapter XX of the Civil Code).
IV. As a real alternative to paying taxes with a high degree of detail, it is possible to consider the direction of foreign income from foreign clients to a legal entity that is registered as a VAT payer in Ukraine.
In this case, income from services to foreign clients will not be subject to VAT. Yes, the sale of services is taxed only if the place of their supply is in Ukraine. Sub-clause 186.3 of the Civil Code lists the services listed below, the place of their provision is considered to be the recipient's place of residence or business.
Thus, if the services from the listed services are provided to a foreign customer, then VAT will not be added to the income from them, since the place of their provision will be the place of registration of the recipient of the services (abroad).
In the pink 186.3 of the PKU, only one type of service is provided, which is advisable to use when providing services, this is consultation. Accordingly, the contract and other documents must be written specifically for this.
Foreign exchange earnings received from consulting services will be added to the total income of the legal organization.
The total income tax a company will pay will be based on the total costs associated with doing business. If the income received is equal to the expenses incurred (for example, purchases of goods, savings, rent, wages, etc.), then the income tax rate may be low.
In order to make a final decision regarding the expediency of this option, it is important to assess the property status, content and scale of economic activity of a particular enterprise. After paying income tax, foreign money received by the corporation will remain in its possession and in its account.
In order to encourage them to own their own property, it is necessary to calculate a tax on dividends (5%), as well as a military levy (1.5%) from the total amount of payment (clause 167.5.2 clause 1.4 of article 161 clause 10 of chapter XX of the PKU ).
Payment of this tax and fee (6.5% of the total income of the recipient) is the final tax on the income of the recipient of dividends (clause 170.5.4 of the PKU).
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