[ESTABLISHING A BUSINESS ENTITY IN UKRAINE] 490
company with a certificate confirming its tax residency of the treaty country. Most treaties envisage that the amount of tax withheld in Ukraine can be further credited against the corporate profit tax in the country of the recipient’s tax residence. Will a foreign national director become a tax resident of Ukraine due to the fact of holding a position in the company? The mere fact of a person holding a position in a Ukrainian company does not automatically lead to that person being qualified as a Ukrainian tax resident. To qualify a person as a Ukrainian tax resident, a system of tax residency criteria must be applied to this person. This system includes not only those criteria used in domestic tax law, but also in the respective double tax treaty applicable. It should be noted that identifying Ukraine as the centre of a person’s vital interests is one of the most decisive criteria resulting in a person being qualified as a Ukrainian tax resident. Usually, the centre of vital interests exists in Ukraine if a person owns shares in a Ukrainian company, owns immovable property (especially, residential) in Ukraine, is employed by a Ukrainian company, has family ties here, especially when his/her family lives in Ukraine
and his/her children go to educational institutions here. *** The above information is provided for general understanding and informational purposes only. In general, information is provided according to the standard legislation of Ukraine and does not focus on specific regulations that may, from time to time, be introduced into the legislation of Ukraine due to the martial law introduced in Ukraine since February 24, 2022, in response to the military aggression of the Russian Federation against Ukraine. On no account can the provided information be considered as either a legal opinion or advice on how to proceed in particular cases or on how to assess them. The establishment of a legal entity may also involve other legal and tax aspects. We strongly advise that legal and tax advisors be involved in order to ensure that each specific case is dealt with comprehensively. Should you need any further information on the issues covered by this overview, please contact Mr. Taras Utiralov ( utiralov@peterkapartners.ua ) or Ms. Halyna Melnyk ( melnyk@peterkapartners.ua ). PETERKA PARTNERS is a full-service law firm operating in Central and Eastern Europe providing one-stop access to an integrated regional service. The firm provides legal services to multinational companies active in the region, as well as leading local groups, providing them with complex legal solutions with exceptional commercial value.
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator