This publication only covers transactions where the seller of the corporate rights is an individual. When preparing the purchase and sale of corporate rights (shares in the authorised capital of an LLC, shares) of a Ukrainian company, it is imperative to consider the issue of taxation of such a transaction. After all, the notary does…
Post-sale CFC report
Our lawyers have received individual tax advice on whether it is necessary to file a CFC report if the beneficial owner lost control over a foreign company in the previous (reporting) year. The State Tax Service stated in the individual tax advice, that in such a case the beneficial owner still submits a CFC report, including…
Double taxation
Double taxation means that taxpayer has to pay taxes on the same income in two countries, for example, in the country of residence and the country of one’s citizenship. The issue of double taxation is faced by citizens who have moved to a permanent place of residence in another country, as well as companies that…
Dividend taxation: Austria
Taxation of taxpayers from different countries should always be considered individually, but for a better understanding we give an example of dividend taxation between residents of Ukraine and Austria. How are dividends paid by Ukrainian companies to their founder in Austria taxed? The issue is more related to double taxation and the ability to…
Taxes of LLCs and employees in Ukraine
When planning to run a business in Ukraine, investors need to know the tax burden not only on the company’s profits, but also on employees’ salaries. Taxes in Ukraine are regulated by the Tax Code of Ukraine, double taxation agreements, special laws, etc. Regardless of the type of activity, all Ukrainian companies pay: Income…
About controlled foreign companies
From 01 January 2021, the issue of reporting and taxation of consolidated profits will become relevant for all Ukrainian citizens and Ukrainian companies that have shares in foreign companies, as defined in the Tax Code of Ukraine. What is a CFC (controlled foreign company)? CFC is a company registered in a foreign state or territory…
Procedure for challenging the results of tax inspection in Ukraine
According to the results of a tax inspection, an inspection report shall be drawn up (in case of detection of violations of the tax legislation in the enterprise’s activity) or a certificate (in the absence of such violations). After 10 working days from the date when the inspection report was given to the company, the…