before traveling

Visas

Visas are not required for citizens of many countries for up to 90 continuous periods (for a total of no more than 180 days per year). A complete list of updated visa requirements and details of citizens of different countries can be found on the website of the Ukrainian Ministry of Foreign Affairs.

In December 2019, Ukraine introduced an electronic visa platform where citizens of 52 countries can obtain their visas online. You can check if your country is listed here and find instructions for your e-Visa application here.

Starting from August 1, 2020, Ukraine added more countries whose citizens are allowed visa-free entry to Ukraine, to include the new list of Saudi Arabia, Kuwait, Qatar, Oman, the UAE and Bahrain.

There are three types of visas:

• Transit visas (Type B). Type B visas are issued if each transit period does not exceed 5 days. B type visas are issued as single / double / multiple entry visas, valid for a maximum of one year. 
• Short-term (Type C) visas are issued for up to 90 days of stay within 180 days. Type C visas are issued as single / double / multiple entry visas, valid for a period ranging from 6 months to 5 years.
• Long-term (type D) visas are issued in cases of applying for a temporary residence permit and being allowed to stay in Ukraine for more than 90 days. D-type visas are only issued as multiple-entry visas.

Work of foreign citizens in Ukraine

Foreign citizens legally residing in Ukraine have the same rights in terms of employment as Ukrainian citizens. In order to employ a foreign citizen, the employer must obtain a work permit issued by the Employment Center, except in the case where this worker has a permanent residence permit in Ukraine. If the worker is to be assigned to the representative office of a foreign company, this permit is not required. 

A work permit is generally issued for a period of one year. A longer period - up to 3 years - can be granted to founders of legal entities in Ukraine, high-paid IT professionals and professionals whose monthly salary exceeds 50 the minimum wage set for Ukrainian citizens (UAH 236 150 - about $ 8,757).

Currency exchange

Ukraine has taken a strong step towards liberal regulation of currency regulations in recent years, marked by the adoption of Ukraine’s Law “On Monetary and Currency Transactions” in 2019. The basic principle is that any cross-border payments, purchases of foreign currency or currency exchange transactions are permitted unless expressly restricted. according to the law. 

Non-residents have the same rights in relation to foreign currency transactions granted to residents of Ukraine. 

The national currency of Ukraine, the hryvnia (UAH), is the only legal means of payment on the territory of Ukraine and UAH is acceptable without any restrictions. Foreign investments in transactions in Ukraine, return of dividends and other investment profits are among the permissible transactions in foreign currency. Transactions between residents and non-residents can be made in UAH and foreign currencies. 

Customs regulation

General customs rules

Customs clearance of goods can be done at any customs office regardless of where the importer is registered. The business entity must be certified with the local customs office to conduct import / export operations. The main document required for customs clearance of goods is a customs declaration submitted by an importer or customs broker.

Importers can declare the goods before the goods arrive at the customs territory of Ukraine or before the goods are delivered to the customs clearance office by submitting a prior customs declaration.

Import of goods is subject to Ukrainian value-added tax at an overall rate of 20%, while exports of goods are generally subject to 0% value-added tax.

Authorized economic operator

The concept of Authorized Economic Operator (AEO) in Ukraine is similar to that of the European Union.

Only legal entities residing in Ukraine and registered with the customs office and participating in the international supply chain are entitled to apply for AEO status. Ukrainian companies involved in cross-border operations, among others, manufacturers, exporters and importers, can apply for AEO status. 

In order to obtain AEO status, the applicant must meet the following criteria:

• Compliance with customs legislation and tax rules and the absence of criminal offenses related to economic activity;
• Keeping proper records; 
• Financial convenience 
• Establish practical standards of competency or professional qualifications / appropriate safety and security measures.

Within three years after the entry into force of the agreement, only companies registered for more than three years in the Ukrainian Customs Office are entitled to apply for AEO status.

Collect taxes

All taxes, fees, rates, exemptions, rules as well as procedures and mechanisms for assessing taxes and payments are defined in the Tax Code of Ukraine.

Corporate Profit Tax (CPT)

Resident business entities, foreign legal entities making profits from Ukrainian sources and permanent establishments of foreign entities are subject to the CPT rate of 18% calculated as financial results according to Ukrainian and international accounting rules amended according to some differences. 

The foreign entity is responsible for paying CPT in respect of all “Ukrainian source” income, which includes, among other things, interest payments, dividends and royalties.

Tax law of Ukraine provides a withholding tax rate of 15% that is withheld by a resident entity or by the permanent establishment of a foreign entity from the amount of any income from a Ukrainian source, unless otherwise stipulated by a bilateral treaty of double taxation. Ukraine is a party to more than 70 bilateral double taxation treaties.

The permanent enterprises of foreign entities are independent as taxpayers in Ukraine.

Value Added Tax (VAT)

It includes the sale of goods (services) within the customs territory of Ukraine and within it, the import of goods into the customs territory of Ukraine and the export of goods outside the customs territory of Ukraine are subject to value added tax. The base VAT rate is 20% of the contractual value of the related goods (services).

Payroll taxes

The general personal income tax (PIT) rate applied to almost all income a person residing in Ukraine receives is 18%. An additional 1.5% military tax is levied on income subject to income tax. 

Also, employers are responsible for providing unified compulsory social insurance contributions to the payroll state to employees insured in the state pension fund at a rate of 22%. The minimum base is % 15 of the minimum monthly wage.